Axfood AB · OMXSTO:AXFO
Axfood AB — Q2 2011 Earnings Presentation
22 slides from Axfood AB's earnings presentation, July 2011
Slide 1: Axfood April – June 2011
Axfood April — June, 2011 axtfood
Slide 2: Axfood April – June 2011
Axfood April – June 2011 • Stable sales growth : SEK 8,889 m (8,583), + 3.6% • Strong result: SEK 317 m (279), +13.6% • Operating margin: 3.6% (3.3) • Continued positive result for all operations • Generally week Swedish food retail market 2
Slide 3: Willys April – June 2011
Willys April – June 2011 • Good profitability and stable sales development • High pace of store modernization • Like for like sales affected by – Week food retail market – Strong competition 3
Slide 4: Hemköp April – June 2011
Hemköp April – June 2011 • Good result and like for like sales • Expansion of approximately 50 stores 2011 – Franchise agreement with individual Vi retailers • Target 2011: 2% EBIT margin 4
Slide 5: PrisXtra April – June 2011
PrisXtra April – June 2011 • Positive operating profit • Unsatisfying sales development – Two stores are affected by major road work – Strategic locations in the future 5
Slide 6: Axfood Närlivs April – June 2011
Axfood Närlivs April – June 2011 • Good sales in all areas – New agreements – Easter holiday sales – Favourable weather • Renewed agreement with OKQ8 – Supply of newsstand and food retail products 6
Slide 7: Dagab April – June 2011
Dagab April – June 2011 • Favourable earnings – Cost control and efficiency – Good service level, 96.8% • Successful sustainability work – Received two recognitions for its active environmental work 7
Slide 8: Market trends 2011
Market trends 2011 • Uncertain market development • Competition remains high • Price conscious customers • Average food price inflation of around 2% 8
Slide 9: Strategy for profitable growth 2011
Strategy for profitable growth 2011 • High level of establishments and modernization of stores • Good cost control and efficiency • Stimulate sales growth and increase private label share 9
Slide 10: Axfood's goal 2011
Axfood’s goal 2011 To achieve an operating profit at least at the same level as in 2010 10
Slide 11: Financial Overview
Financial Overview April – June, 2011 11
Slide 12: Axfood April – June 2011
Axfood April – June 2011 • Continued positive result in all operations Axfood group, SEK m 2011 2010 Change Net sales 8,889 8,583 + 3.6% Operating profit 317 279 + 13.6% Operating margin 3.6% 3.3% - 12
Slide 13: Willys April – June 2011
Willys April – June 2011 • Good result and stable development Sales Operating profit 4,805 4,665 195 205 Operating margin 4.3% -10 -11 -10 -11 13
Slide 14: Hemköp April – June 2011
Hemköp April – June 2011 • Continued positive result and like for like sales Sales Operating profit 1,224 1,184 23 Operating margin 10 -10 -11 -10 -11 +4.1% 1.9% 14
Slide 15: PrisXtra April – June 2011
PrisXtra April – June 2011 • Positive result • Unsatisfying sales development PrisXtra, SEK m 2011 2010 Change Net sales 142 161 - 11.8% Operating profit 4 -3 - Operating margin 2.8% - 1.9% - 15
Slide 16: Axfood Närlivs April – June 2011
Axfood Närlivs April – June 2011 • Good sales growth – New agreements – Easter sales – Favourable weather Axfood Närlivs, SEK m 2011 2010 Change Net sales 1,691 1,491 + 13.4% Operating profit 36 34 + 5.9% Operating margin 2.1% 2.3% - 16
Slide 17: Dagab April – June 2011
Dagab April – June 2011 • Good result development – Cost control and efficiency Dagab, SEK m 2011 2010 Change Net sales 6,623 6,422 + 3.1% Operating profit 41 34 + 20.6% Operating margin 0.6% 0.5% - 17
Slide 18: Other April – June 2011
Other April – June 2011 • Sales: SEK 1 082 m (1 026) • Operating profit: SEK 8 m (9) – Amortization of new business system SEK 8 m (6) 18
Slide 19: Key ratios January – June 2011
Key ratios January – June 2011 • Balance sheet, total: SEK 7,975 m (7 556) • Cash flow operating activity: SEK 638 m (708) • Capex: SEK 488 m (454) • Investment plan 2011: SEK 900 – 1 000 m (862) 19
Slide 20: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • Long term target for operating margin: 4% 20
Slide 21: Summary
Summary • Strong result – Good cost control • Stable sales performance 21
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