Axfood Q2 2011 presentation english

1. Axfood
April – June, 2011
1

2. 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

3. 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

4. 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

5. PrisXtra April – June 2011
• Positive operating profit
• Unsatisfying sales development
– Two stores are affected by major
road work
– Strategic locations in the future
5

6. 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

7. 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

8. Market trends 2011
• Uncertain market development
• Competition remains high
• Price conscious customers
• Average food price inflation of
around 2%
8

9. 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

10. Axfood’s goal 2011
To achieve an operating profit
at least at the same level as in
2010
10

11. Financial Overview
April – June, 2011
11

12. 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

13. 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

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Summary
• Strong result
– Good cost control
• Stable sales performance
21

22. 22