Axfood AB · OMXSTO:AXFO
Axfood AB — Q3 2008 Earnings Presentation
21 slides from Axfood AB's earnings presentation, October 2008
Slide 1: Axfood AB 1 Jan – 30 Sep 2008
Axfood AB 1 Jan – 30 Sep 2008
Slide 2: Axfood AB 1 January – 30 September 2008
Axfood AB 1 January – 30 September 2008 • Consolidated sales : SEK 23,519 m (21,536), an increase of 9.2% • Stable operating profit: SEK 800 m (857 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3.4% (4.0) 2
Slide 3: Willys 1 January – 30 September 2008
Willys 1 January – 30 September 2008 • Continued very strong performance • Increased market share • New marketing mix successful • Renewal of concept according to plan, so far 8 stores – Broader product offering – More fresh products & organic products – More generous business hours – Store renewal
Slide 4: Hemköp 1 January – 30 September 2008
Hemköp 1 January – 30 September 2008 • New CEO, Anders Strålman • Weak development • Focus on turn around of underperforming stores: – Sales growth – Quality control of store operations – Improved control over gross profit – Better planning of resources 4
Slide 5: PrisXtra 1 February – 30 September 2008
PrisXtra 1 February – 30 September 2008 • Acquisition completed end of January • Sales development according to plan • Focus on integration • Deliveries from Dagab as from March • Sixth store opened successfully 1 October 5
Slide 6: Dagab 1 January – 30 September 2008
Dagab 1 January – 30 September 2008 • Continued high service level • Opening of new warehouse for fresh food • Implementation of Autoorder started in Q3 6
Slide 7: Närlivs 1 January – 30 September 2008
Närlivs 1 January – 30 September 2008 • Stable development of sales and profitability • Cash & Carry showed strong performance • Increased competition 7
Slide 8: Outlook Q4, 2008
Outlook Q4, 2008 • Food inflation has peaked • Challenging economic environment, where Willys is very well positioned • Increased customers focus on price • Continued fierce competition 8
Slide 9: Forecast FY 2008
Forecast FY 2008 Axfood expects operating profit for 2008 to remain level with 2007 9
Slide 10: Financial Performance January – September 2008
Financial Performance 1 January – 30 September 2008
Slide 11: Axfood AB 1 January – 30 September 2008
Axfood AB 1 January – 30 September 2008 • Consolidated sales : SEK 23,519 m (21,536), an increase of 9.2% • Stable operating profit: SEK 800 m (857 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3.4% (4.0) 11
Slide 12: Sales development
Sales development Q3: Axfood-owned stores increased by 10.9% Like-for-like increased by 6,1% 10.9% 12% 10% 8% 6% 4% 2% 0% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 2007 2007 2007 2007 2008 2008 2008 12
Slide 13: Willys 1 January – 30 September 2008
Willys 1 January – 30 September 2008 • Sales: SEK 12,421 m (11,349), an increase of 9.4% • Like-for-like sales rose 8,1% • Operating profit: SEK 549 m (488 incl. a positive one-time effect of SEK 19 m ) • Operating margin: 4.4% (4.3%) 13
Slide 14: Hemköp 1 January – 30 September 2008
Hemköp 1 January – 30 September 2008 • Sales: SEK 4,146 m (4,138) – Like-for-like wholly owned stores: -2.4% • Operating profit: SEK - 18 m (51) • Operating margin: - 0.4% (1.2) 14
Slide 15: PrisXtra 1 February – 30 September 2008
PrisXtra 1 February – 30 September 2008 • Acquisition completed on 28 January • Sales: SEK 450 m ( - ) • Operating profit: SEK 8 m ( - ) 15
Slide 16: Närlivs 1 January – 30 September 2008
Närlivs 1 January – 30 September 2008 • Sales: SEK 4,268 m (4,062) • Operating profit: SEK 88 m (78) • Operating margin: 2.1% (1.9) 16
Slide 17: Dagab & Others 1 January – 30 September
Dagab & Others 1 January – 30 September • Dagab’s sales totalled SEK 17,374 m (15,597) • Operating profit: SEK 93 m (88) • Others sales totalled SEK 1,411 m (841) • Operating profit Others: SEK 80 m (152) 17
Slide 18: Key ratios
Key ratios • Balance sheet, total: SEK 7,195 m (6,380) • Cash flow operating activity: SEK 754 m (822) • Capex: SEK 939 m (387) • Equity ratio: 29% 18
Slide 19: Net debt
Net debt Q1 2006 – Q3 2008 2 000 1,25 Debt short term, MSEK Debt long term, MSEK 1 600 Debt equity ratio multiple 1 1 200 0,75 800 0,5 400 0,25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 -06 -06 -06 -06 -07 -07 -07 -07 -08 -08 -08
Slide 20: Summary financial performance
Summary financial performance • Strong sales growth + 9.2%, mainly driven by Willys sales performance • Continued stable operating profit SEK 800 m • Strong balance sheet • Axfood expects operating profit for 2008 to remain level with 2007 20
Slide 21: Time for questions!
Time for questions! axtfood