Axfood AB · OMXSTO:AXFO
Axfood AB — Q1 2009 Earnings Presentation
24 slides from Axfood AB's earnings presentation, April 2009
Slide 1: Axfood AB 1 January – 31 March 2009
Axfood AB 1 January – 31 March 2009
Slide 2: Axfood AB 1 January – 31 March 2009
Axfood AB 1 January – 31 March 2009 • Consolidated sales : SEK 7,682 m (7,495), an increase of 2.5% • Stable operating profit: SEK 234 m (240) • Operating margin: 3.0% (3.2) • Positive result for Hemköp • Negative calendar effect 2
Slide 3: Hemköp 1 January – 31 March 2009
Hemköp 1 January – 31 March 2009 • Positive result – Cost control – Increased gross profit • Unsatisfying sales growth • Continued high pace in action programme for underperforming stores 3
Slide 4: Willys 1 January – 31 March 2009
Willys 1 January – 31 March 2009 • Continued strong performance • Leading position in soft discount – Good store operations – Attractive mix between price & assortment • Renewal of concept according to plan, so far 17 stores 4
Slide 5: PrisXtra 1 January – 31 March 2009
PrisXtra 1 January – 31 March 2009 • Sales according to plan • Focus on integration • Decrease in sales for two stores due to major road work 5
Slide 6: Axfood Närlivs 1 January – 31 March 2009
Axfood Närlivs 1 January – 31 March 2009 • Good development despite fierce competition • Fewer Tempo stores affected total sales • Cash & Carry showed strong performance 6
Slide 7: Dagab January – March
Dagab 1 January – 31 March • Continued high service level, 97,1% • Implementation of Autoorder continues in Willys, starts in Hemköp in Q2 7
Slide 8: Central meat packing for higher quality
Central meat packing for higher quality • Sweden´s most modern plant • Full control over the business • Higher quality • Wider selection and higher degree of flexibility 8
Slide 9: Well positioned in a weak economy
Well positioned in a weak economy • Market and price outlook difficult to predict • Weak currency affecting price development % • Increased price consciousness Private label share 25 among customers 20 • Weak economy benefits Willys 15 and private label products 10 • Continued strong competition 5 0
Slide 10: Unchanged strategy for profitable growth
Unchanged strategy for profitable growth • Continued strong cost control • Increased private label share • Develop and improve the various concepts • Adaption to customer demands • Good price & product range • Greater efficiency 10
Slide 11: Axfood's goal for 2009
Axfood´s goal for 2009 Axfood´s goal for 2009 is to achieve an operating profit of at least SEK 1 billion 11
Slide 12: Financial Performance
Financial Performance 1 January – 31 March 2009
Slide 13: Axfood AB Januari – Mars 2009
Axfood AB 1 Januari – 31 Mars 2009 • Stable sales • Good profitability • Negative calendar effects vs 2008 Group, SEK m 2009 2008 Change Net sales 7 682 7 495 +2,5% Operating profit 234 240 -2,6% Operating margin 3,0% 3,2% - 13
Slide 14: Hemköp 1 January – 31 March 2009
Hemköp 1 January – 31 March 2009 Sales Operating profit -4,8% 1 426 13 1 357 -08 -09 -08 -09 -7 2009 2008 Operating margin 1,0% -0,5% 14
Slide 15: Willys 1 January – 31 March 2009
Willys 1 January – 31 March 2009 Sales Operating profit +4,4% 4 009 4 186 167 167 -08 -09 -08 -09 2009 2008 Operating margin 4,0% 4,2% 15
Slide 16: PrisXtra Januari – Mars 2009
PrisXtra 1 Januari – 31 Mars 2009 • Sales according to plan • Focus on integration • Decrease in sales for two stores due to major road work SEK m 2009 2008 Change Net sales 194 124 - Operating profit 0 2 - Operating margin 0,0% 1,6% - 16
Slide 17: Axfood Närlivs 1 January – 31 March 2009
Axfood Närlivs 1 January – 31 March 2009 • High level of delivery reliability: 97.5% • Increased competition SEK m 2009 2008 Change Net sales 1 242 1 256 -1,1% Operating profit 16 10 +60% Operating margin 1,3% 0,8% - 17
Slide 18: Dagab 1 January – 31 March 2009
Dagab 1 January – 31 March 2009 • Continued high service level, 97,1% • Negative influence from calender outcome • Operating margin affected by Autoorder SEK m 2009 2008 Change Net sales 5 669 5 505 +3,0% Operating profit 24 38 -36,8% Operating margin 0,4% 0,7% - 18
Slide 19: Other January – March
Other 1 January – 31 March • Sales: SEK 728 m (428) • Operating profit: SEK 14 m (30) • Increased sales are driven by fruit & vegetables and centrally packed meat • Changes in internal pricing since Q3 2008 are affecting the operating profit 19
Slide 20: Key ratios
Key ratios • Balance sheet, total: SEK 7,226 m (6,790) • Cash flow operating activity: SEK 384 m (168) • Capex: SEK 135 m (562) • Equity ratio: 27,7% (24,8) 20
Slide 21: Net debt
Net debt Q1 2006 – Q1 2009 2 000 1,25 Debt short term, MSEK Debt long term, MSEK Debt equity ratio multiple 1 600 1 1 200 0,75 800 0,5 400 0,25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 21
Slide 22: Financial targets & dividend policy
Financial targets & dividend policy • Axfood´s goal for 2009 is to achieve an operating profit of at least SEK 1 billion • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax, for 2008 the dividend was SEK 8 (12) • Long term target for operating margi
Slide 23: Summary financial performance
Summary financial performance • Stable sales and good profitability • Strong balance sheet • Another quarter with positive result for Hemköp 23
Slide 24: Time for questions!
Time for questions! axtood