Axfood Annual general meeting, 2011

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Axfood Annual general meeting, 2011

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Axfood Annual general meeting, 2011

  1. 1. Anders Strålman President and CEO
  2. 2. Axfood 2010 – The best result ever!• Consolidated sales: Sales SEK 34,260 m (32,378) +5.8%• Operating profit: SEK 1,209 m (1,128)• Operating margin: 3.5% (3.5) Operating profit +7.2%
  3. 3. We achieved our 2010 objectives 2010 objectives Outcome Operating profit at least in Operating profit +7.2% level with 2009 Profitable growth Sales growth +5.8% Dividend to shareholders The board proposes dividend of at least 50% of profit of SEK 12 per share - 73% after tax of profit after tax
  4. 4. Willys - ambitious year of investment and store establishment • Strong results and stable sales development – Operating profit: SEK 772 m (731) • Increased market share – Growing number of stores – Improved shopping experience – Right price and product mix Operating profit +5.6%
  5. 5. Willys – Sweden’s cheapest bag of groceries
  6. 6. Hemköp - Successful marketing strategy• Increased like for like sales and continued improved result – Like for like sales: +2.3% – Operating profit: SEK 45 m (28)• New store in Stockholm City• Targeting EBIT margin of 2% 2011 Operating profit +60.7%
  7. 7. Hemköp – new model for franchisees• Proposed programme is based on the 91/9- and 1/99-model and requires a decision from the AGM• The model makes franchise operations possible – Regardless of store size – For establishments/sales/aquisitions – Training and career opportunities for Axfood’s staff• Accepted market model for franchisees
  8. 8. PrisXtra - Unsatisfying development• Operating profit: SEK -5 m (6)• Result affected by one time cost of SEK 14 m due to closure of the smallest store• Two stores affected by major road work – Strategic locations in the future
  9. 9. Axfood Närlivs – good growth and increased market share • New agreements 55% • Solid profitability and growth in Axfood Snabbgross • Result in line with Market share expectations – Operating profit: SEK 113 m (132)
  10. 10. Dagab – the hub in Axfood’s supply chain• Good cost control – Operating profit: SEK 189 m (147)• Best service level ever• Continued good cooperation with the Vi-stores Service level 97.2%
  11. 11. Sustainability in all areas• Sustainability work at an even higher pace• Renewable energy – Wind power plants at Dagab’s facilities – Our vehicles drive on pine oil
  12. 12. Sustainability in all areas• Grocery bags made of renewable materials at Hemköp• Eco labeling of Willys stores• New guidelines for waste usage
  13. 13. Dividend• Policy: Shareholder dividend of at least 50% of profit after tax• The board proposes dividend of 73% SEK 12 per share (10) of profit after tax
  14. 14. Market trends 2011• Continued tough competition• Price conscious customers• Average 2-3 % food price inflation• Decent outlook for Swedish economy
  15. 15. Strategy for profitable growth• Optimize store operations• Stimulate sales growth• Good cost control and efficiency• Increased privat label share• Price and assortment
  16. 16. Ambitious investment strategy 2011• Approximately 15 new stores• Modernization of about 40 stores• Continued implementation of new business system• Investment plan 2011: SEK 900 - 1,000 m
  17. 17. Axfood’s goal for 2011 To achieve an operating profit at least at the same level as 2010

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