Axfood AB · OMXSTO:AXFO
Axfood AB — Q3 2016 Earnings Presentation
19 slides from Axfood AB's earnings presentation, 2016
Slide 1: Q3 2016 – Continued better growth than the market
Q3 2016 – Continued better growth than the market Anders Strålman President and CEO
Slide 2: Outperforming the market
Outperforming the market • Net sales growth, +4.2% • All companies contributed to sales growth – Willys 2.9% like-for-like 0.3% – Hemköp 2.7% like-for-like 2.4% – Axfood Närlivs 7.5% – Dagab 5.1% • Increased operating margin: 5.5% (5.3) • Market growth July: -0.7%, August: 0.2% (Source: HUI/SCB, pre
Slide 3: Willys – good profitability
Willys – good profitability • Good net sales growth Net sales – Like-for-like sales 0.3% • E-commerce +2.9% – Present: 3 stores in Stockholm and Gothenburg – On-line share reflects the Swedish market – Q4: +5 stores, including Uppsala and Norrköping • Great profitability – Operating margin of 4.8% (
Slide 4: Hemköp – continued strong sales growth and profitability
Hemköp – continued strong sales growth and profitability • Strong sales growth, both overall and like-for-like Net sales – Like-for-like sales 2.4% (franchise 2.2%) • Good profitability +2.7% – Operating margin of 4.6% (4.1) • E-commerce – In August: pre-defined dinner solutions (subscription) – In
Slide 5: Axfood Närlivs – further strengthening its market position
Axfood Närlivs – further strengthening its market position Net sales • Good sales growth, both in the cash-and- carry business and to convenience stores +7.5% • Further investments in Axfood Snabbgross • Strong profitability – Operating margin of 9.9% (10.1) 5
Slide 6: Dagab – continued strong performance
Dagab – continued strong performance Net sales • Good sales to Group’s store chains and in the whole sales operations +5.1% • Strong and stable profitability through good cost control – Operating margin of 1.9 % (1.8) • High share of private label: 27.4% (27.2) 6
Slide 7: Market outlook 2016
Market outlook 2016 • Continued fierce competition – high campaign pressure • Low food price inflation – 1-2% expected for 2016 7
Slide 8: Strategy for profitable growth
Strategy for profitable growth • Proceeding the high expansion rate – Roll-out e-commerce and improve digital promotions Strengthen market – Further modernization at Hemköp position – New stores and concept development as • Keep profitability level of 4% • Development of global, organic and vegetari
Slide 9: Axfood's new forecast: An operating profit for 2016 of around SEK 1,900 M
Axfood’s new forecast: An operating profit for 2016 of around SEK 1,900 M 9
Slide 10: Financial overview Q3 2016
Financial overview Q3 2016 Karin Hygrell-Jonsson CFO
Slide 11: Axfood Q3 2016
Axfood Q3 2016 Key ratios ■ Net sales, SEK m SEK m Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change ▬ Operating margin, % Net sales 10,853 10,412 4.2% 32,239 30,456 5.9% 10,991 10,853 1.00 10,412 10,791 10,395 0.90 0.80 Change in like-for-like 0.7% 4.4% -3.7 2.2% 4.2% -2.0 0.70 sales 5.3 5.5 0.60 4.2 4
Slide 12: Willys Q3 2016
Willys Q3 2016 Key ratios ■ Net sales, SEK m SEKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change ▬ Operating margin, % Net sales 5,720 5,560 2.9% 17,186 16,512 4.1% 5,808 5,643 5,823 5,720 5,560 Change in like-for-like 0.3% 4.4% -4.1 1.6% 4.1% -2.5 sales 4.9 4.8 3.8 4.2 Operating profit 277 275 0.7%
Slide 13: Hemköp Q3 2016
Hemköp Q3 2016 Key ratios ■ Net sales, SEK m SEKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change ▬ Operating margin, % 1,586 1,545 1,563 Net sales 1,464 1,426 2.7% 4,572 4,297 6.4% 1,426 1,464 65,0 55,0 Change in like-for-like 2.4% 4.6% -2.2 4.6% 4.5% 0.1 sales 4.6 4.5 45,0 4.1 3.6 3.8 Operating prof
Slide 14: Axfood Närlivs Q3 2016
Axfood Närlivs Q3 2016 Key ratios ■ Net sales, SEK m ▬ Operating margin, % SEKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change 150,0 760 789 Net sales 789 734 7.5% 2,183 2,046 6.7% 734 130,0 688 634 110,0 10.1 9.9 90,0 Operating profit 78 74 5.4% 157 152 3.3% 7.5 7.0 70,0 50,0 3.5 30,0 Operating marg
Slide 15: Dagab Q3 2016
Dagab Q3 2016 Key ratios ■ Net sales, SEK m SEKm Q3 2016 Q3 2015 Change 9M 2016 9M 2015 Change ▬ Operating margin, % Net sales 10,559 10,044 5.1% 31,405 29,367 6.9% 12 10,389 10,734 10,559 11 10,044 10,112 10 Distributed sales 6,865 6,539 5.0% 20,359 19,065 6.8% 9 1.9 1.8 8 1.7 1.6 1.5 7 6 Operating
Slide 16: Other key ratios January−September 2016
Other key ratios January−September 2016 Capital expenditure, SEK m • Balance sheet, total: SEK 9,904 m (10,025) 993 • Cash flow operating activity: SEK 1,569 m (1,793) 932 806 • Capex: SEK 408 m (555) 764 – Investment plan 2016 (revised in Q2) : SEK 600−700 m 643 2011 2012 2013 2014 2015 16
Slide 17: Financial targets and Dividend policy
Financial targets • Operating profit for 2016 of around SEK 1,900 m new! • Long-term target of an operating margin of 4% • Equity ratio of at least 25% during all quarters Dividend policy • Shareholder dividend of at least 50% of profit after tax 17
Slide 18: Summary financial development
Summary financial development All companies contributed with: • Good net sales growth • Strong and stable profitability – Increased volume – Cost control – Efficiency • High share of private label • Gaining market share 18
Slide 19: Questions & answers
Questions & answers 19