Axfood AB · OMXSTO:AXFO
Axfood AB — FY2008 Earnings Presentation
26 slides from Axfood AB's earnings presentation, 2009
Slide 1: Axfood AB 1 Jan – 31 Dec 2008
Axfood AB 1 Jan – 31 Dec 2008
Slide 2: Axfood AB 1 January – 31 December 2008
Axfood AB 1 January – 31 December 2008 • Consolidated sales : SEK 31,663 m (29,189), an increase of 8.5% • Stable operating profit: SEK 1,077 m (1,121 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3.4% (3.8) • A record year for Willys • Positive result for Hemköp in Q4 2
Slide 3: Willys 1 January – 31 December 2008
Willys 1 January – 31 December 2008 • Continued very strong performance – Broader product offering – Good store operations – Attractive mix between price & assortment – Strengthened marketing programme • Increased market share • Renewal of concept according to plan, so far 15 stores 3
Slide 4: Hemköp 1 January – 31 December 2008
Hemköp 1 January – 31 December 2008 • Positive result in Q4 • Weak development for the full year • Action plan for underperforming stores: – Cost control – Improved control over gross profit – Quality control of store operations – Better planning of resources 4
Slide 5: PrisXtra 1 February – 31 December 2008
PrisXtra 1 February – 31 December 2008 • Acquisition completed end of January • Focus on integration • Deliveries from Dagab as from March • Sixth store opened successfully 1 October • Decrease in sales for two stores due to major road work 5
Slide 6: Dagab 1 January – 31 December 2008
Dagab 1 January – 31 December 2008 • Continued high service level • Reorganization of warehouse operations according to plan – Opening of new cold warehouse in Borlänge – New high bay storage in Jordbro • Implementation of Autoorder started in Q3 6
Slide 7: Närlivs 1 January – 31 December 2008
Närlivs 1 January – 31 December 2008 • Stable development of sales and profitability • Cash & Carry showed strong performance • Increased competition 7
Slide 8: New cooperation agreement with Vi
New cooperation agreement with Vi • Axfood will supply the Vi stores through Dagab from November 2009 • The agreement has a term of five years and also entails the inclusion of Vi stores in the purchasing operations • Vi Retailers Association is a voluntay chain of approx 80 proprietor-run stores ac
Slide 9: Outlook 2009
Outlook 2009 • Market and price outlook difficult to predict • Weak currency affects prices • Increased customers focus on price • Challenging economic environment, where Willys and private label is well positioned • Continued fierce competition 9
Slide 10: Dividend
Dividend The board of Directors proposes an ordinary dividend of SEK 8 per share (12)
Slide 11: Stable position in challenging environment
Stable position in challenging environment • Strong balance sheet and limited debt exposure • Multiple formats enable us to have a broad offering • Leading position in soft discount and private label
Slide 12: Unchanged strategy for profitable growth
Unchanged strategy for profitable growth • Sales growth • Continued strong cost control • Increase private label • Develop and improve the various concepts • Adaption to customer demands • Effective price & product range
Slide 13: Forecast FY 2009
Forecast FY 2009 Axfood´s goal for 2009 is to achieve an operating profit of at least SEK 1 billion 13
Slide 14: Financial Performance
Financial Performance 1 January – 31 December 2008
Slide 15: Axfood AB 1 January – 31 December 2008
Axfood AB 1 January – 31 December 2008 • Consolidated sales : SEK 31,663 m (28,189), an increase of 8.5% • Stable operating profit: SEK 1,077 m (1,121 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3.4% (3.8) 15
Slide 16: Sales development 2007-2008
Sales development 2007-2008 Q4: Axfood-owned stores increased by 8.7% Like-for-like increased by 2.5% 8.7% 12% 10% 8% 6% 4% 2% 0% -2% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2007 2007 2007 2008 2008 2008 2008 16
Slide 17: Willys 1 January – 31 December 2008
Willys 1 January – 31 December 2008 • Sales: SEK 16,776 m (15,382), an increase of 9.1% • Like-for-like sales rose 7.3% • Operating profit: SEK 730 m (666 incl. a positive one-time effect of SEK 19 m ) • Operating margin: 4.4% (4.3%) 17
Slide 18: Hemköp 1 January – 31 December 2008
Hemköp 1 January – 31 December 2008 • Sales wholly owned stores: SEK 5,583 m (5,620) – Like-for-like wholly owned stores: -3.0% • Operating profit 2008: SEK - 8 m (53) • Operating profit Q4: SEK 10 m (2) • Operating margin 2008: - 0.1% (0.9) 18
Slide 19: PrisXtra 1 February – 31 December 2008
PrisXtra 1 February – 31 December 2008 • Acquisition completed on 28 January • Sales: SEK 653 m ( - ) • Operating profit: SEK 9 m ( - ) • Operating margin: 1.4 % 19
Slide 20: Närlivs 1 January – 31 December 2008
Närlivs 1 January – 31 December 2008 • Sales: SEK 5,662 m (5,465) • Operating profit: SEK 110 m (101) • Operating margin: 1.9% (1.8) 20
Slide 21: Dagab & Others January – December
Dagab & Others 1 January – 31 December • Dagab’s sales totalled SEK 23,424 m (21,294) • Operating profit: SEK 138 m (131) • Others sales totalled SEK 1,981 m (1,230) • Operating profit Others: SEK 98 m (170) 21
Slide 22: Key ratios
Key ratios • Balance sheet, total: SEK 7,350 m (6,608) • Cash flow operating activity: SEK 1,152 m (1,166) • Capex: SEK 1,158 m (576), of these, SEK 477 derive from acquisitions • Equity ratio: 30.7% 22
Slide 23: Net debt
Net debt Q1 2006 – Q4 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 Q4 -06 -06 -06 -06 -07 -07 -07 -07 -08 -08 -08 -08
Slide 24: 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 board of Directors proposes an ordinary dividend of SEK 8 (12
Slide 25: Summary financial performance
Summary financial performance • Strong sales growth + 8.5%, mainly driven by Willys sales performance • Continued stable operating profit SEK 1,077 m • Positive result in Q4 for Hemköp • Strong balance sheet 25
Slide 26: Time for questions!
Time for questions! axtfood