Axfood AB · OMXSTO:AXFO
Axfood AB — Q1 2011 Earnings Presentation
23 slides from Axfood AB's earnings presentation, April 2011
Slide 1: Axfood AB January – March 2011
Axfood AB January – March 2011
Slide 2: Axfood AB January – March 2011
Axfood AB January – March 2011 • Consolidated sales : SEK 8,257 m (8,210), +0.6% • Stable earnings: SEK 241 m (245) • Operating margin: 2.9% (3.0) • Positive result for all operations • Week Swedish food retail market and lack of Easter sales
Slide 3: Willys January – March 2011
Willys January – March 2011 • Good profitability and stable sales development • Operating profit affected by – Establishment of stores – New competition – Week food retail market • High pace in store modernization
Slide 4: Hemköp January – March 2011
Hemköp January – March 2011 • Good result and like for like sales – Increased number of customers • Modernization of stores started – 10 – 20 stores during 2011 • Target 2011: 2% EBIT margin
Slide 5: PrisXtra January – March 2011
PrisXtra January – March 2011 • Positive operating profit • Unsatisfying sales development – Two stores are affected by major road work – Strategic locations in the future
Slide 6: Axfood Närlivs January – March 2011
Axfood Närlivs January – March 2011 • Good sales performance – New agreements – Negative effect due to lack of easter • Result affected negative by – Establishment of a cash and carry – Re-launch of e-commerce
Slide 7: Dagab January – March 2011
Dagab January – March 2011 • Increased profitability – Cost controll and efficiency – Strong service level • Satisfying collaboration with the Vi-stores
Slide 8: Private label
Private label • Increased private label share: 23% • Target 2012: 25% • New line of climate friendly products
Slide 9: Market trends 2011
Market trends 2011 • Soft Swedish food retail market • Competition remains high • Price conscious customers • Average 2-3% food price inflation
Slide 10: Strategy for profitable growth 2011
Strategy for profitable growth 2011 • High level of establishments and modernization of stores • Good cost control and efficiency • Stimulate sales growth and increase private label share
Slide 11: Axfood’s goal 2011
Axfood’s goal 2011 To achieve an operating profit at least at the same level as in 2010
Slide 12: Financial Overview
Financial Overview January – March 2011
Slide 13: Axfood AB January – March 2011
Axfood AB January – March 2011 • Positive result in all operations Axfood group, SEK m 2011 2010 Change Net sales 8,257 8,210 + 0.6% Operating profit 241 245 - 1.6% Operating margin 2.9% 3.0% -
Slide 14: Willys January – March 2011
Willys January – March 2011 • Stable development Sales Operating profit 4,545 4,466 167 157 Operating margin 3.5% -10 -11 -10 -11
Slide 15: Hemköp January – March 2011
Hemköp January – March 2011 • Continued positive result and like for like sales Sales Operating profit 1,279 1,205 13 Operating margin 6 -10 -11 -10 -11 +4.1% 1.1%
Slide 16: PrisXtra January – March 2011
PrisXtra January – March 2011 • Positive result • Unsatisfying sales development PrisXtra, SEK m 2011 2010 Change Net sales 144 171 - 15.8% Operating profit 7 3 - Operating margin 4.9% 1.8% -
Slide 17: Axfood Närlivs January – March 2011
Axfood Närlivs January – March 2011 • Good sales growth – New agreements Axfood Närlivs, SEK m 2011 2010 Change Net sales 1,370 1,293 +6.0% Operating profit 6 14 - Operating margin 0.4% 1.1% - 17
Slide 18: Dagab January – March 2011
Dagab January – March 2011 • Good cost control and efficiency – High service level Dagab, SEK m 2011 2010 Förändring Net sales 6,141 6,179 - 0.6% Operating profit 41 30 - Operating margin 0.7% 0.5% -
Slide 19: Other January – March 2011
Other January – March 2011 • Sales: SEK 1 020 m (993) • Operating profit: SEK 17 m (25) – Amortization of new business system SEK 6 m
Slide 20: Key ratios January – March 2011
Key ratios January – March 2011 • Balance sheet, total: SEK 7,709 m (7 453) • Cash flow operating activity: SEK 293 m (422) • Capex: SEK 220 m (204) • Investment plan 2011: SEK 900 – 1 000 m (862)
Slide 21: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • Long term target for operating margin: 4%
Slide 22: Summary
Summary • Stable result and sales performance
Slide 23: Slide 23