Axfood AB · OMXSTO:AXFO
Axfood AB — Q3 2012 Earnings Presentation
23 slides from Axfood AB's earnings presentation, October 2012
Slide 1: Axfood January-September 2012
Axfood January-September, 2012 1
Slide 2: Axfood Q3 2012
Axfood Q3 2012 Net sales • Favourable sales: SEK 9,044 m (8,735) +3.5% 9,044 +3.5% • Stable earnings: SEK 368 m (370) • Operating margin: 4.1% (4.2) • Positive result for all business units 2
Slide 3: Hemköp – Good sales growth
Hemköp – Good sales growth • Good sales performance: SEK 1,225 m (1,143), +7.2% – Like-for-like sales: +1.1% • Stable profit: SEK 32 m (34) – Operating margin: 2.6% (3.0) • Increased marketing activities Net sales • Target 2012: 3% operating margin +7.2% 3
Slide 4: Willys – Best third quarter result ever
Willys – Best third quarter result ever • Stable sales growth: SEK 4,818 m (4,706), +2.4% • Good result: SEK 215 m (212) +1.4% – Operating margin: 4.5% (4.5) • 93 stores are now modernized – Remaining 20 stores in the renewal program Operating profit will be modernized during the coming year 215 +1.
Slide 5: PrisXtra – Continued positive result
PrisXtra – Continued positive result • Decrease in sales due to major road constructions – Net sales: SEK 113 m (123), -8.1% – Future strategic locations • Positive result: SEK 4 m (-1) 5
Slide 6: Axfood Närlivs – Wholesale operation
Axfood Närlivs – Wholesale operation Net sales • Favourable sales growth mainly credited to +11.4% deliveries to new customers – Net sales: SEK 1,652 m (1,483), +11.4% – Like-for-like sales affected by bad weather conditions • Operating profit: SEK 50 m (44), +13.6% 6
Slide 7: Dagab – Efficient logistics
Dagab – Efficient logistics • Stable development – Efficiency and high delivery reliability • Operating profit: SEK 46 m (56) • Result affected by: – Increased costs due to implementation of the new business system Delivery reliability 97.3% 7
Slide 8: Increased private label share
Increased private label share • Reached target of 25% private label share Private label share % 25 20 15 10 5 0 -01 -03 -05 -07 -09 -11 8
Slide 9: Market outlook 2012
Market outlook 2012 • Uncertain market development • Food price inflation at low levels • Continued tough competition • Price conscious customers 9
Slide 10: Strategy for profitable growth
Strategy for profitable growth • Further stimulate sales growth – Well operated stores • High level of private label • Efficiency and cost control • Ambitious pace of investment – Continued high pace in store renewals – Implementation of the new business system continues 10
Slide 11: Axfood's goal for 2012
Axfood’s goal for 2012 Achieve an operating profit at the same level as in 2011 11
Slide 12: Financial Overview
Financial Overview January-September, 2012 12
Slide 13: Axfood Q3 2012
Axfood Q3 2012 Net sales, SEK m Operating margin, % Key ratios Q3 Q3 Change 8,914 9,292 SEK m 2012 2011 8,735 8,718 9,044 Net sales 9,044 8,735 3.5% Change in like-for-like sales, 0.0% -0.8% 0.8 % 4.2 4.2 4.1 3.6 3.4 Operating profit 368 370 -0.5% 2.8 Operating margin, % 4.1% 4.2% -0.1 Number of sto
Slide 14: Willys Q3 2012
Willys Q3 2012 Net sales, SEK m Operating margin, % Key ratios Q3 Q3 Change 4,961 SEK m 2012 2011 4,848 4,701 4,818 4,706 Net sales 4,818 4,706 2.4% Change in like-for-like sales, -0.1% -1.3% 1.2 4.5 4.5 % 4.1 4.4 3.6 Operating profit 215 212 1.4% Operating margin, % 4.5% 4.5% - Q3 -11 Q4 -11 Q1 -12
Slide 15: Hemköp Q3 2012
Hemköp Q3 2012 Net sales, SEK m Operating margin, % Key ratios Q3 Q3 Change SEK m 2012 2011 1,255 1,271 1,225 1,239 1,143 Net sales 1,225 1,143 7.2% Change in like-for-like sales, 1.1% 0.6% 0.5 %, Group-owned Operating profit 32 34 - 5.9% 3.0 2.6 1.9 1.9 1.7 Operating margin, % 2.6% 3.0% - 0.4 Numbe
Slide 16: PrisXtra Q3 2012
PrisXtra Q3 2012 Net sales, SEK m Operating margin, % Key ratios Q3 Q3 Change SEK m 2012 2011 132 140 130 113 Net sales 113 123 -8.1% 113 Change in like-for-like sales, 3.6 3.0 3.8 3.5 -8.1% -8.9% 0.8 % Operating profit 4 -1 -0.8 Operating margin, % 3.5% -0.8% 4.3 Q3 -11 Q4 -11 Q1 -12 Q2 -12 Q3 -12
Slide 17: Axfood Närlivs Q3 2012
Axfood Närlivs Q3 2012 Net sales, SEK m Operating margin, % Key ratios Q3 Q3 Change SEK m 2012 2011 1,673 1,652 1,483 Net sales 1,652 1,483 11.4% 1,382 1,441 3.0 3.0 Distributed sales 1,512 1,338 13.0% 1.7 Operating profit 50 44 13.6% 1.7 Operating margin, % 3.0% 3.0% - 0.6 Number of stores, 20 20 -
Slide 18: Dagab Q3 2012
Dagab Q3 2012 Net sales, SEK m Operating margin, % Key ratios Q3 Q3 Change SEK m 2012 2011 6,273 6,264 6,000 6,016 6,022 Net sales 6,000 6,016 -0.3% Distributed sales 4,189 4,193 -0.1% 0.9 0.9 0.6 0.8 Operating profit 46 56 -17.9% 0.5 Operating margin, % 0.8% 0.9% -0.1 Q3 -11 Q4 -11 Q1 -12 Q2 -12 Q3
Slide 19: Other Q3 2012
Other Q3 2012 • Sales: SEK 1,113 m (1,038), +7.2% • Operating profit: SEK 21 m (25) – Includes amortization of new business system 19
Slide 20: Key ratios January-September 2012
Key ratios January-September 2012 • Balance sheet, total: SEK 8,482 m (7,911) • Cash flow operating activity: SEK 1,385 m (1,004) • Capex: SEK 679 m (696) – Investment plan 2012: SEK 900 – 1,000 m (993) – Same level is expected for 2013 20
Slide 21: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2012 is to achieve an operating profit at the same level as in 2011 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • Long term target for an operating margin of 4% 21
Slide 22: Summary
Summary • Stable result and sales development • Efficiency and good cost control 22
Slide 23: Axfood Q&A
Axfood Q&A 23