Axfood AB · OMXSTO:AXFO
Axfood AB — H1 2009 Earnings Presentation
23 slides from Axfood AB's earnings presentation, Jun 30, 2009
Slide 1: Axfood AB 1 January – 30 June 2009
Axfood AB 1 January – 30 June 2009 1
Slide 2: Axfood AB 1 January – 30 June 2009
Axfood AB 1 January – 30 June 2009 • Consolidated sales : SEK 15,898 m (15,585), an increase of 2.0% • Stable operating profit: SEK 503 m (516) • Operating margin: 3.2% (3.3) 2
Slide 3: Hemköp 1 January – 30 June 2009
Hemköp 1 January – 30 June 2009 • Positive result despite restructuring costs – Improved cost control – Increased gross profit • Unsatisfying sales growth • Continued high pace in action programme for underperforming stores 3
Slide 4: Willys 1 January – 30 June 2009
Willys 1 January – 30 June 2009 • Continued strong performance • Leading position in soft discount – Good store operations – Attractive mix between price & assortment – Increased marketing activities • Renewal of concept according to plan, so far 21 stores 4
Slide 5: PrisXtra 1 January – 30 June 2009
PrisXtra 1 January – 30 June 2009 • Integration with Axfood finalized • Decrease in sales for two stores due to major road work 5
Slide 6: Axfood Närlivs 1 January – 30 June 2009
Axfood Närlivs 1 January – 30 June 2009 • Good development despite fierce competition • Cash & Carry showed very strong performance 6
Slide 7: Dagab January – June
Dagab 1 January – 30 June • Continued high service level, 97,2% • Successsful implementation of Autoorder continues 7
Slide 8: Well positioned in a weak economy
Well positioned in a weak economy • Continued strong price competition and weak economy • Food price inflation around 2 percent for the full year % • Increased price consciousness Private label share 25 among customers 20 • Weak economy benefits Willys 15 and private label products 10 5 0 -01 -02 -0
Slide 9: Unchanged strategy for profitable growth
Unchanged strategy for profitable growth • Continued strong cost control • Increase private label share • Develop and improve the various concepts • Good price & product range • Greater efficiency 9
Slide 10: 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 10
Slide 11: Financial Performance
Financial Performance 1 January – 30 June 2009
Slide 12: Axfood AB 1 January – 30 June 2009
Axfood AB 1 Januari – 30 June 2009 • Stable sales • Strong cost control • Good profitability Group, SEK m 2009 2008 Change Net sales 15,898 15,585 +2.0 % Operating profit 503 516 - 2,6% Operating margin 3.2% 3.3% - 12
Slide 13: Hemköp 1 January – 30 June 2009
Hemköp 1 January – 30 June 2009 Sales Operating profit 2 852 2 701 3 -08 -09 -08 -09 -13 2009 2008 Operating margin 0.1% -0,5% 13
Slide 14: Willys 1 January – 30 June 2009
Willys 1 January – 30 June 2009 Sales Operating profit +5.4% 8 233 8,678 352 344 -08 -09 -08 -09 2009 2008 Operating margin 4.0% 4.3% 14
Slide 15: PrisXtra 1 January – 30 June 2009
PrisXtra 1 Januari – 30 June 2009 • Integration finalized • Decrease in sales for two stores due to major road work SEK m 2009 2008 Change Net sales 379 299 - Operating profit 3 6 - Operating margin 0.8% 2.0% - 15
Slide 16: Axfood Närlivs 1 January – 30 June 2009
Axfood Närlivs 1 January – 30 June 2009 • High level of delivery reliability: 97,3 % • Increased competition SEK m 2009 2008 Change Net sales 2,700 2,763 -2.3% Operating profit 54 42 + 28.6% Operating margin 2% 1.5% - 16
Slide 17: Dagab 1 January – 30 June 2009
Dagab 1 January – 30 June 2009 • Continued high service level, 97,2 % SEK m 2009 2008 Change Net sales 11,828 11,544 + 2.5% Operating profit 60 60 +/- 0% Operating margin 0.5% 0.5% - 17
Slide 18: Other January – June
Other 1 January – 30 June • Sales: SEK 1,615 m (911) • Operating profit: SEK 39 m (69) • Increased sales are driven by fruit & vegetables and centrally packed meat • Changes in internal pricing since Q3 2008 are affecting the operating profit 18
Slide 19: Key ratios
Key ratios • Balance sheet, total: SEK 7,129 m (7,214) • Cash flow operating activity: SEK 695 m (462) • Capex: SEK 319 m (816) • Equity ratio: 30.7% (25.9) 19
Slide 20: Strong financial position
Strong financial posistion Q1 2006 – Q2 2009 2 000 1,25 Debt, short term, MSEK Debt, long term, MSEK Debt equity ratio mutiple 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 Q2 2006 2007 2008 2009 20
Slide 21: 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 22: Summary financial performance
Summary financial performance • Stable sales • Good profitability • Strong balance sheet & cash flow 22
Slide 23: Time for questions!
Time for questions! axtood 23