2010-04-20 Presentation at media and analyst meeting

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2010-04-20 Presentation at media and analyst meeting

  1. 1. Axfood AB Interim Report January – March, 2010 1
  2. 2. Axfood AB January - March 2010 • Consolidated sales: SEK 8,210 m (7,682), an increase of 6.9% • Good operating profit: SEK 245 m (234) • Operating margin: 3.0% (3.0) • Positive operating margin in all operations 2
  3. 3. Willys January - March 2010 • Continued good performance – Stable earnings and sales • High pace in store establishments – Six new stores • Leading position in soft discount – Attractive mix between price & assortment • 2010: Sales growth and increased number of stores 3
  4. 4. Hemköp January - March 2010 • Positive result despite increased marketing costs – New price strategy – Increased marketing activities • 2010: Focus on improving sales and profitability – Close or convert five stores – Reduction with 14 positions at head office 4
  5. 5. PrisXtra January - March 2010 • Positive development in four of six stores • Decrease in sales for two stores due to major road work 5
  6. 6. Axfood Närlivs January - March 2010 • Stable development and good profitability • Good service level: 97.7% 6
  7. 7. Dagab January - March 2010 • Good service level: 97.2% • Good cost control • Cooperation with Vi-stores continues to work well 7
  8. 8. New union agreement • New union agreement over 24 months – Increased total costs by 3.85 % for retail employees – Increased total costs by 3.55 % for whole sale employees 8
  9. 9. New business system • Implementation on track – Accounting system successfully installed • Project will run over five years • Total investment of SEK 500 - 600 m 9
  10. 10. Market trends 2010 • Continued high price competition • Price conscious customers • Price inflation remain at low levels 10
  11. 11. Strategy for profitable growth • Good cost control and efficiency • High pace in store establishments • Develop the various concepts • Optimize store operations • Stimulate sales • Develope private label 11
  12. 12. Axfood´s goal for 2010 To achieve an operating profit at least in level with 2009 12
  13. 13. Financial Performance January – March, 2010 13
  14. 14. Axfood AB January - March 2010 • Good profitability • Good sales performance • Positive operating margin in all operations Group, SEK m 2010 2009 Change Net sales 8,210 7,682 +6.9 % Operating profit 245 234 + 4.7% Operating margin 3.0% 3.0% - 14
  15. 15. Willys January - March 2010 Sales Operating profit +6.7% 4,46 4,186 6 167 167 -10 -09 -10 -09 2010 2009 Operating margin 3.7% 4.0% 15
  16. 16. Hemköp January - March 2010 Sales Operating profit 1,279 1,357 13 6 -10 -09 -10 -09 2010 2009 Operating margin 0.5% 1.0% 16
  17. 17. PrisXtra January - March 2010 • Positive development in four of six stores • Decrease in sales for two stores due to major road work PrisXtra, SEK m 2010 2009 Change Net sales 171 182 - 6.0% Operating profit 3 0 - Operating margin 1.8% 0,0% - 17
  18. 18. Axfood Närlivs January - March 2010 • Good development in distributed sales – Increased by 6.6 % Axfood Närlivs, SEK m 2010 2009 Change Net sales 1,293 1,254 + 3.1% Operating profit 14 16 - Operating margin 1.1% 1.3% - 18
  19. 19. Dagab January - March 2010 • Good development in distributed sales – Increased by 10.4 % • Stable results Dagab, SEK m 2010 2009 Change Net sales 6,179 5,669 + 9.0% Operating profit 30 24 - Operating margin 0.5% 0.4% - 19
  20. 20. Other January - March 2010 • Sales: SEK 993 m (728) • Operating profit: SEK 25 m (14) • Higher results are due to increased volumes in fruit & vegetables and centrally packed meat 20
  21. 21. Key ratios • Balance sheet, total: SEK 7,453 m (7,226) • Cash flow operating activity: SEK 422 m (384) • Capex: SEK 204 m (135) • Equity ratio: 30.7% (27.7) 21
  22. 22. Strong financial position Q1 2006 – Q1 2010 2 000 1,25 Debt, short term, MSEK Debt, long term, MSEK Debt equity ratio mutiple 1 600 1 1 200 0,75 800 0,5 400 0,25 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2006 2007 2008 2009 2010 22
  23. 23. Financial targets & dividend policy • Axfood´s goal for 2010 is to achieve an operating profit at least in level with 2009 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • For 2009 a dividend of SEK10 (8) was paid out • Long term target for operating margin: 4% 23
  24. 24. Summary financial performance • Stable result • Good sales performance • Positive operating profit in all operations 24
  25. 25. Time for questions! 25

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