Axfood AB · OMXSTO:AXFO
Axfood AB — Q3 2011 Earnings Presentation
22 slides from Axfood AB's earnings presentation, October 2011
Slide 1: Axfood July – September 2011
Axfood July – September, 2011 1
Slide 2: Axfood July – September 2011
Axfood July – September 2011 • Stable sales growth: SEK 8,735 m (8,582), + 1.8% • Good earnings: SEK 370 m (364), +1.6% • Operating margin: 4.2% (4.2) • Good efficiency and cost control • Uncertainty in the market environment 2
Slide 3: Hemköp July – September 2011
Hemköp July – September 2011 • Strengthened result and positive like for like sales • Conversion of Vi-stores to Hemköp franchise started – 17 stores are so far converted – Around 50 stores in total will be converted • Target 2011: 2% EBIT margin 3
Slide 4: Willys July – September 2011
Willys July – September 2011 • Stable development and good operating margin • High pace of store modernization • Like for like sales affected by – Weak growth for stores that are still not modernized – New competition 4
Slide 5: PrisXtra July – September 2011
PrisXtra July – September 2011 • Result in line with plan • Unsatisfying sales development – Two stores are affected by major road work – Strategic locations in the future • Target 2011: Positive operating profit 5
Slide 6: Axfood Närlivs July – September 2011
Axfood Närlivs July – September 2011 • Good sales growth in all areas – New agreements – Good development in e-commerce • New agreement with Svenska Statoil – Supply of newsstand and food retail products from 1 January 2012 6
Slide 7: Dagab July – September 2011
Dagab July – September 2011 • Stable performance – Cost control and efficiency – Good service level, 97.0% • Extensive environmental programme continued 7
Slide 8: Market trends 2011
Market trends 2011 • Uncertain market development • Competition remains high • Price conscious customers • Increased interest for private label 8
Slide 9: Strategy for profitable growth 2011
Strategy for profitable growth 2011 • Stimulate sales growth • Cost control and efficiency • High level of establishments and modernization of stores • 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 July – September, 2011 11
Slide 12: Axfood July – September 2011
Axfood July – September 2011 • Favourable earnings • Good cost control Axfood group, SEK m 2011 2010 Change Net sales 8,735 8,582 + 1.8% Operating profit 370 364 + 1.6% Operating margin 4.2% 4.2% - 12
Slide 13: Willys July – September 2011
Willys July – September 2011 • Stable earnings • Like-for-like sales: -1.3% Sales Operating profit 4,706 4,660 214 212 Operating margin 4.5% -10 -11 -10 -11 13
Slide 14: Hemköp July – September 2011
Hemköp July – September 2011 • Improved profitability • Like-for-like sales: +0.6% • Target 2011: 2% EBIT margin Sales Operating profit 1,164 1,143 34 Operating margin 11 -10 -11 -10 -11 +4.1% 3.0% 14
Slide 15: PrisXtra July – September 2011
PrisXtra July – September 2011 • Result according to plan • Unsatisfying sales development PrisXtra, SEK m 2011 2010 Change Net sales 123 143 - 14.0% Operating profit -1 1 - Operating margin - 0.8% 0.7% - 15
Slide 16: Axfood Närlivs July – September 2011
Axfood Närlivs July – September 2011 • Good sales growth in all areas – New agreements – Positive development in e-commerce Axfood Närlivs, SEK m 2011 2010 Change Net sales 1,714 1,571 + 9.1% Operating profit 44 43 + 2.3% Operating margin 2.6% 2.7% - 16
Slide 17: Dagab July – September 2011
Dagab July – September 2011 • Stable development – Good cost control and efficiency Dagab, SEK m 2011 2010 Change Net sales 6,427 6,379 + 0.8% Operating profit 56 58 - 3.4% Operating margin 0.9% 0.9% - 17
Slide 18: Other July – September 2011
Other July – September 2011 • Sales: SEK 1,038 m (993) • Operating profit: SEK 25 m (37) – Amortization of new business system SEK 10 m (4) 18
Slide 19: Key ratios January – September 2011
Key ratios January – September 2011 • Balance sheet, total: SEK 7,911 m (7,367) • Cash flow operating activity: SEK 1,004 m (1,037) • Capex: SEK 696 m (592) • Investment plan 2011: SEK 900 – 1 000 m (862) – Same level is expected for 2012 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 • Good result – Cost control and efficiency • Uncertainty in the market environment 21
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