Axfood AB · OMXSTO:AXFO
Axfood AB — Q2 2016 Earnings Presentation
19 slides from Axfood AB's earnings presentation, 2016
Slide 1: Q2 2016 – Continued good growth and exceptional profitability
Q2 2016 – Continued good growth and exceptional profitability Anders Strålman President and CEO
Slide 2: Growing market share and exceptional profitability
Growing market share and exceptional profitability • Net sales growth, +4.9% • All companies contributed to sales growth – Willys 2.3% like-for-like -0.2% – Hemköp 6.3% like-for-like 5.2% – Axfood Närlivs 6.0% – Dagab 6.7% • Increased operating margin: 4.5% (4.1) • Market growth April: -1.3%, May: 1
Slide 3: Willys – good profitability
Willys – good profitability • Moderate net sales growth Net sales – Like-for-like sales -0.2% • 2 million Willys Plus customers +2.3% • One new store – Gothenburg (Torslanda) • On-line offer in Stockholm and Gothenburg • Increased profitability – Operating margin of 4.2% (4.0) 3
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 5.2% • Net three new franchise stores +6.3% – of which one conversion of a 91/9-store • Operating margin of 4.5% (3.8) • E-commerce will be launched after su
Slide 5: Axfood Närlivs – further strengthening its market position
Axfood Närlivs – further strengthening its market position Net sales • Strong sales growth in cash-and-carrying business +6.0% • Good profitability, slightly squeezed by two recent store openings – Operating margin of 7.5% (8.2) 5
Slide 6: Dagab – continued strong performance
Dagab – continued strong performance Net sales • Strong sales to Group’s store chains and B2B customers +6.7% • Continued strong profitability through good cost control – Operating margin of 1.5 % (1.3) • High share of private label: 26.8% (26.5) 6
Slide 7: Market outlook 2016
Market outlook 2016 • Expecting continued stable growth despite dip in April (mainly Easter effect) • Low food price inflation – 1-2% expected for 2016 • Competitive market 7
Slide 8: Strategy for profitable growth
Strategy for profitable growth • Continue high expansion rate – New stores Strengthen market – Attracting more customers: customer programmes, e-commerce to consumer, further modernization at Hemköp position as • Keep profitability level of 4% • Development of global, organic and vegetarian product
Slide 9: Axfood's forecast
Axfood’s forecast Operating profit for 2016 to exceed the outcome for 2015 9
Slide 10: Financial overview Q2 2016
Financial overview Q2 2016 Karin Hygrell-Jonsson CFO
Slide 11: Axfood Q2 2016 key ratios
Axfood Q2 2016 Key ratios ■ Net sales, SEK m SEK m Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change ▬ Operating margin, % Net sales 10,991 10,478 4.9% 21,386 20,044 6.7% 10,991 1.00 10,478 10,412 10,791 10,395 0.90 0.80 Change in like-for-like 0.9 3.9 0.9 3.0% 4.1% -1.1 0.70 sales, % 5.3 0.60 4.1 4.2 4
Slide 12: Willys Q2 2016 key ratios
Willys Q2 2016 Key ratios ■ Net sales, SEK m SEKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change ▬ Operating margin, % Net sales 5,823 5,691 2.3% 11,466 10,952 4.7% 5,691 5,808 5,643 5,823 5,560 Change in like-for-like -0.2% 3.7% -3.9 2.3% 4.0% -1.7 sales, % 4.9 4.0 3.8 4.2 Operating profit 245 227 7
Slide 13: Hemköp Q2 2016 key ratios
Hemköp Q2 2016 Key ratios ■ Net sales, SEK m SEKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change ▬ Operating margin, % 1,586 1,545 1,563 Net sales 1,563 1,470 6.3% 3,108 2,871 8.3% 1,470 1,426 65,0 55,0 Change in like-for-like 5.2% 4.9% 0.3 5.7% 4.6% 1.1 sales, % 4.5 45,0 4.1 3.8 3.6 3.8 Operating pr
Slide 14: Axfood Närlivs Q2 2016 key ratios
Axfood Närlivs Q2 2016 Key ratios ■ Net sales, SEK m ▬ Operating margin, % SEKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change 150,0 Net sales 760 717 6.0% 1,394 1,312 6.3% 734 760 130,0 717 688 634 110,0 10.1 90,0 Operating profit 57 59 -3.4% 79 78 1.3% 8.2 7.5 7.0 70,0 50,0 3.5 Operating margin, %
Slide 15: Dagab Q2 2016 key ratios
Dagab Q2 2016 Key ratios ■ Net sales, SEK m SEKm Q2 2016 Q2 2015 Change 6M 2016 6M 2015 Change ▬ Operating margin, % Net sales 10,734 10,058 6.7% 20,846 19,323 7.9% 12 10,389 10,734 11 10,058 10,044 10,112 10 Distributed sales 6,962 6,547 6.3% 13,494 12,526 7.7% 9 1.8 8 1.7 1.6 1.5 7 6 1.3 Operating
Slide 16: Other key ratios January−June 2016
Other key ratios January−June 2016 Capital expenditure, SEK m • Balance sheet, total: SEK 9,631 m (9,714) 993 • Cash flow operating activity: SEK 1,035 m (1,145) 932 806 • Capex: SEK 301 m (385) 764 – Revised investment plan 2016: SEK 600−700 m 643 2011 2012 2013 2014 2015 16
Slide 17: Financial targets and dividend policy
Financial targets • Operating profit for 2016 to exceed the outcome for 2015 • Long-term target for 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 profitability – Increased volume – Cost control – Efficiency • High share of private label • Gaining market share 18
Slide 19: Questions & answers
Questions & answers 19