Axfood AB · OMXSTO:AXFO
Axfood AB — H1 2008 Earnings Presentation
22 slides from Axfood AB's earnings presentation, Jun 30, 2008
Slide 1: Axfood AB 1 Jan – 30 June 2008
Axfood AB 1 Jan – 30 June 2008
Slide 2: Axfood AB 1 January – 30 June 2008
Axfood AB 1 January – 30 June 2008 • Consolidated sales : SEK 15,585 m (14,335), an increase of 8.7% • Stable operating profit: SEK 516 m (537 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3.3% (3.7) 2
Slide 3: Willys 1 January – 30 June 2008
Willys 1 January – 30 June 2008 • Continued very positive development • New marketing mix • Renewal of concept, 2 pilots open – Broader product offering – More fresh products & organic products – More generous business hours – Store renewal • Establishment of 4 new stores in 2008 3
Slide 4: 2008 market factors: food inflation and costs
2008 • Food inflation • Raw material costs could lead to further price increases • Higher transport costs • Continued fierce competition and establishment of new retail space 4
Slide 5: Hemköp 1 January – 30 June 2008
Hemköp 1 January – 30 June 2008 • Focus on improvement work - negative impact on sales and operating profit – Quality follow-up of store operations – Implementation of new price strategy and product mix – Improved control over gross profit – Better planning of resources • Continued launch of the new
Slide 6: PrisXtra 1 February – 30 June 2008
PrisXtra 1 February – 30 June 2008 • Acquisition completed end of January • Sales development according to plan • Focus on integration • Deliveries from Dagab as from March • One new store to open during the autumn 6
Slide 7: Dagab 1 January – 30 June 2008
Dagab 1 January – 30 June 2008 • Continued high level of delivery reliability • A new high-bay storage in Jordbro • Implementation of Autoorder in Q3 7
Slide 8: Närlivs 1 January – 30 June 2008
Närlivs 1 January – 30 June 2008 • Stable development of sales and profitability • Renewal of agreements • Increased competition 8
Slide 9: Strategic priorities for profitable growth
Strategic priorities for profitable growth • Sales growth and profitability in existing stores • Cost control • Improve and develop the various concepts • Strengthen the market position • New opportunities 9
Slide 10: Outlook 2008
Outlook 2008 Axfood expects operating profit for 2008 to remain level with 2007 10
Slide 11: Financial Performance January – June 2008
Financial Performance 1 January – 30 June 2008
Slide 12: Axfood AB 1 January – 30 June 2008
Axfood AB 1 January – 30 June 2008 • Consolidated sales : SEK 15,585 m (14,335), an increase of 8.7% • Stable operating profit: SEK 516 m (537 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3.3% (3.7) 12
Slide 13: Operating profit and margin
Operating profit and margin H1, 2004 - 2008 Mkr 600 550 500 Positive one-time effect 450 Operating profit 400 Margin 3,7% 3,7% 350 300 3,3% 3,5% 250 200 3,0% 150 100 50 0 -04 -05 -06 -07 -08 13
Slide 14: Sales development
Sales development Q2 - Axfood-owned stores increased by 10.1% Like-for-like increased by 4.7% 10.1% 12% 10% 8% 6% 4% 2% 0% -2% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 14
Slide 15: Willys 1 January – 30 June 2008
Willys 1 January – 30 June 2008 • Sales: SEK 8,233 m (7,590), an increase of 8.5% • Like-for-like sales rose 7.7% • Operating profit: SEK 352 m (303 incl. a positive one-time effect of SEK 19 m ) • Operating margin: 4.3% (4.0%) 15
Slide 16: Hemköp 1 January – 30 June 2008
Hemköp 1 January – 30 June 2008 • Sales: SEK 2,852 m (2,819) – Like-for-like wholly owned stores – 1.8% • Operating profit: SEK - 13 m (39) • Operating margin: - 0.5% (1.4) 16
Slide 17: PrisXtra 1 February – 30 June 2008
PrisXtra 1 February – 30 June 2008 • Acquisition completed on 28 January • Sales: SEK 299 m ( - ) • Operating profit: SEK 6 m ( - ) 17
Slide 18: Närlivs 1 January – 30 June 2008
Närlivs 1 January – 30 June 2008 • Sales: SEK 2,763 m (2,636) • Operating profit: SEK 42 m (42) • Operating margin: 1.5% (1.6) 18
Slide 19: Dagab & Others 1 January – 30 June 2008
Dagab & Others 1 January – 30 June 2008 • Dagab’s sales totalled SEK 11,542 m (10,462) • Operating profit: SEK 60 m (55) • Others sales totalled SEK 911 m (535) • Operating profit Others: SEK 69 m (98) 19
Slide 20: Key ratios
Key ratios • Balance sheet, total: SEK 7,214 m (6,157) • Cash flow operating activity: SEK 462 m (515) • Capex: SEK 816 m (225) • Equity ratio: 26% 20
Slide 21: Summary financial performance
Summary financial performance • Continued stable operating profit SEK 516 m • Good sales growth + 8.7% • Axfood expects operating profit for 2008 to remain level with 2007 21
Slide 22: Time for questions!
Time for questions! axtfood