Axfood AB · OMXSTO:AXFO
Axfood AB — Q1 2008 Earnings Presentation
22 slides from Axfood AB's earnings presentation, Mar 31, 2008
Slide 1: Axfood AB 1 Jan – 31 Mar 2008
Axfood AB 1 Jan – 31 Mar 2008
Slide 2: Axfood AB 1 January – 31 March 2008
Axfood AB 1 January – 31 March 2008 • Consolidated sales : SEK 7,495 m (6,943), an increase of 8,0% • Stable operating profit: SEK 240 m (258 incl. a positive one-time effect of SEK 19 m) • Operating margin: 3,2% (3,7) 2
Slide 3: Willys 1 January – 31 March 2008
Willys 1 January – 31 March 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: Hemköp 1 January – 31 March 2008
Hemköp 1 January – 31 March 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 – New marketing mix – Continued launch of loyalty card • 3 new stores in 2008 4
Slide 5: Dagab 1 January – 31 March 2008
Dagab 1 January – 31 March 2008 • Continued high level of delivery reliability • Successful test of Autoorder • Implementation of Autoorder in Q3 5
Slide 6: Närlivs 1 January – 31 March 2008
Närlivs 1 January – 31 March 2008 • Stable development of sales and profitability • Renewal of agreements • Increased competition 6
Slide 7: PrisXtra 1 February – 31 March 2008
PrisXtra 1 February – 31 March 2008 • Acquisition completed end of January • Sales development according to plan • Integration has started • Deliveries from Dagab as from March • One new store to open during the autumn 7
Slide 8: 2008 outlook: raw material and transport costs
2008 • Raw material costs could lead to further price increases, mainly for dairy products and meat • Higher transport costs • Continued fierce competition and establishment of new retail space 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 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 – March 2008
Financial Performance 1 January – 31 March 2008
Slide 12: Axfood AB 1 January – 31 March 2008
Axfood AB 1 January – 31 March 2008 • Consolidated sales : SEK 7,495 m (6,943), an increase of 8,0% • Stable operating profit: SEK 240 m (258 incl. a positive one-time effect of SEK 19 m ) • Operating margin: 3,2% (3,7) 12
Slide 13: Operating profit and margin
Operating profit and margin Q1, 2004 - 2008 Mkr 250 Positive one-time effect Operating profit 200 Margin 3.7% 3.6% 150 3.2% 3.3% 100 3.1% 50 0 -04 -05 -06 -07 -08 13
Slide 14: Like-for-like development
Like-for-like development Q1 – Axfood-owned stores increased by 8,6% Like-for-like increased by 6,0% 7% 6% 6% 5% 4% 3% 2% 1% 0% -1% Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 -2% 14
Slide 15: Willys 1 January – 31 March 2008
Willys 1 January – 31 March 2008 • Sales: SEK 4,009 m (3 705), an increase of 8,2% • Like-for-like sales rose 8,4% • Operating profit: SEK 167 m (140 incl. a positive one-time effect of SEK 19 m ) • Operating margin: 4,2% (3,8%) 15
Slide 16: Hemköp 1 January – 31 March 2008
Hemköp 1 January – 31 March 2008 • Sales: SEK 1,426 m (1,413) – Like-for-like wholly owned stores – 1,2% • Operating profit: SEK - 7 m (19) • Operating margin: - 0,5% (1,3) 16
Slide 17: PrisXtra 1 February – 31 March 2008
PrisXtra 1 February – 31 March 2008 • Acquisition completed on 28 January • Sales: SEK 124 m ( - ) • Operating profit: SEK 2 m ( - ) 17
Slide 18: Närlivs 1 January – 31 March 2008
Närlivs 1 January – 31 March 2008 • Sales: SEK 1,256 m (1,202) • Operating profit: SEK 10 (12) • Operating margin: 0,8% (1,0) 18
Slide 19: Dagab & Others 1 January – 31 March 2008
Dagab & Others 1 January – 31 March 2008 • Dagab’s sales totalled SEK 5,505 m (5 058) • Operating profit: SEK 38 m (37) • Others sales totalled SEK 428 m (261) • Operating profit Others: SEK 30 m (50) 19
Slide 20: Key ratios
Key ratios • Balance sheet, total: SEK 6 790 m (6 135) • Cash flow operating activity: SEK 240 m (372) • Capex: 562 Mkr (117) • Equity ratio: 25% (33) 20
Slide 21: Summary financial performance
Summary financial performance • Continued stable operating profit SEK 240 m • Good sales growth + 8,0% • Axfood expects operating profit for 2008 to remain level with 2007 21
Slide 22: Time for questions!
Time for questions! axtfood