Axfood AB · OMXSTO:AXFO
Axfood AB — Q1 2012 Earnings Presentation
24 slides from Axfood AB's earnings presentation, April 2012
Slide 1: Axfood January-March 2012
Axfood January-March, 2012 1
Slide 2: Axfood Q1 2012
Axfood Q1 2012 Net sales • Solid sales growth: SEK 8,718 m (8,257) +5.6% 8,718 – Increased number of customers +5.6% • Good operating profit: SEK 248 m (241) +2.9% • Operating margin: 2.8% (2.9) • Intense activity in all areas 2
Slide 3: Willys – Strong earnings and stable sales growth
Willys – Strong earnings and stable sales growth • Strong earnings: SEK 171 m (157) +8.9% – Operating margin: 3.6% (3.5) • Positive sales growth: SEK 4,701 m (4,545), +3.4% • Continued high pace in store modernisations Operating profit • Like-for-like sales affected by: – Weak growth for stores that
Slide 4: Hemköp – Positive development
Hemköp – Positive development • Good sales growth: SEK 1,239 m (1,205), +2.8% – Like-for-like sales: +3.1% – Good development in franchise stores • Increased profit: SEK 24 m (13), +84.6% – Operating margin: 1.9% (1.1) • Target 2012: Like-for-like sales – 3% operating margin • New store in Stockholm
Slide 5: PrisXtra – Continued positive result
PrisXtra – Continued positive result • Positive result: SEK 4 m (7) • Decrease in sales due to major road constructions – Net sales: SEK 132 m (144), -8.3% – Future strategic locations 5
Slide 6: Axfood Närlivs – Increased market share
Axfood Närlivs – Increased market share • Good sales growth in all areas – Net sales: SEK 1,441 m (1,184) + 21.7% – New businesses – Favourable development in Axfood Snabbgross • Started to deliver to Statoil in January Net sales +21.7% 6
Slide 7: Dagab – Efficient logistics
Dagab – Efficient logistics • Efficiency and strong delivery reliability • Operating profit: SEK 33 m (41) • Result affected by: – Higher fuel prices – Increased costs due to implementation of the new business system Delivery reliability 97.5% 7
Slide 8: Increased private label share
Increased private label share • Highest private label share so far, 24.7% – Successful conversion to Group-wide label, Garant • Target 2012: – 25% private label share Private label share % 25 20 15 10 5 0 -01 -03 -05 -07 -09 -11 8
Slide 9: Market outlook 2012
Market outlook 2012 • Uncertain market development • Food price inflation at low levels • Continued tough competition • Price conscious customers 9
Slide 10: New union agreement
New union agreement • New one year agreement from 1 April – Increased cost of 2.6% during the agreement period 10
Slide 11: Strategy for profitable growth 2012
Strategy for profitable growth 2012 • Stimulate sales growth – Well operated stores • Increased private label share • Efficiency and cost control • Ambitious pace of investment – SEK 900 – 1,000 m (993) – Continued high pace in store establishments and renewals – Implementation of the new business s
Slide 12: Axfood's goal for 2012
Axfood’s goal for 2012 Achieve an operating profit in line with 2011 12
Slide 13: Financial Overview
Financial Overview January-March, 2012 13
Slide 14: Axfood Q1 2012
Axfood Q1 2012 Net sales, MSEK Operating margin, % Key ratios Q1 Q1 Change 8,889 8,735 8,914 8,718 SEK m 2012 2011 8,257 Net sales 8,718 8,257 5.6% Change in like-for-like sales, 0.2% -0.4% 0.6 % 4.2 3.6 3.6 2.9 Operating profit 248 241 2.9% 2.8 Operating margin, % 2.8% 2.9% -0.1 Q1 -11 Q2 -11 Q3 -1
Slide 15: Willys Q1 2012
Willys Q1 2012 Net sales, MSEK Operating margin, % Key ratios Q1 Q1 Change SEK m 2012 2011 4,805 4,706 4,848 4,701 4,545 Net sales 4,701 4,545 3.4% Change in like-for-like sales, -0.3% -2.7% 2.4 4.5 % 4.3 4.1 3.6 3.5 Operating profit 171 157 8.9% Operating margin, % 3.6% 3.5% 0.1 Q1 -11 Q2 -11 Q3 -1
Slide 16: Hemköp Q1 2012
Hemköp Q1 2012 Net sales, MSEK Operating margin, % Key ratios Q1 Q1 Change SEK m 2012 2011 1,205 1,255 1,239 1,184 1,143 Net sales 1,239 1,205 2.8% Change in like-for-like sales, 3,1% 0,6% 2.5 % Operating profit 24 13 84.6% 3.0 1.9 1.9 1.9 Operating margin, % 1.9% 1.1% 0.8 1.1 Number of stores Q1 -1
Slide 17: PrisXtra Q1 2012
PrisXtra Q1 2012 Net sales, MSEK Operating margin, % Key ratios Q1 Q1 Change SEK m 2012 2011 144 142 140 132 Net sales 132 144 -8.3% 4.9 123 Change in like-for-like sales, 3.6 -8.3% -12.7% 4.4 2.8 3.0 % Operating profit 4 7 -57.1% -0.8 Operating margin, % 3.0% 4.9% 1.9 Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1
Slide 18: Axfood Närlivs Q1 2012
Axfood Närlivs Q1 2012 Net sales, MSEK Operating margin, % Key ratios Q1 Q1 Change SEK m 2012 2011 Net sales 1,441 1,184 21.7% 1,467 1,483 1,441 1,382 1,184 3.0 Distributed sales 1,326 1,072 23.7% 2.5 1.7 Operating profit 8 6 33.3% Operating margin, % 0.6% 0.5% 0.1 0.5 0.6 Number of stores, 20 19 1
Slide 19: Dagab Q1 2012
Dagab Q1 2012 Net sales, MSEK Operating margin, % Key ratios Q1 Q1 Change SEK m 2012 2011 6,199 6,273 5,807 6,016 6,022 Net sales 6,022 5,807 3.7% Distributed sales 4,211 4,051 3.9% 0.9 0.9 0.7 0.7 Operating profit 33 41 -19.5% 0.5 Operating margin, % 0.5% 0.7% -0.2 Q1 -11 Q2 -11 Q3 -11 Q4 -11 Q1 -1
Slide 20: Other Q1 2012
Other Q1 2012 • Sales: SEK 1,079 m (1,020) • Operating profit: SEK 8 m (17) – Result affected by higher depreciation for the new business system 20
Slide 21: Key ratios January-March 2012
Key ratios January-March 2012 • Balance sheet, total: SEK 8,603 m (7,709) • Cash flow operating activity: SEK 416 m (293) • Capex: SEK 323 m (220) – 50% of the wholesale company Hall Miba was acquired – Investment plan 2012: SEK 900 – 1,000 m (993) 21
Slide 22: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2012 is to achieve an operating profit at the same level as in 2011 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • Long term target for an operating margin of 4% 22
Slide 23: Summary
Summary • Stable result • Good sales development 23
Slide 24: Q&A
Axfood Q&A 24