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Axfood Q2 2011 presentation eng

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Axfood Q2 2011 presentation english

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Axfood Q2 2011 presentation eng

  1. 1. Axfood April – June, 20111
  2. 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 market2
  3. 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 competition3
  4. 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 margin4
  5. 5. PrisXtra April – June 2011• Positive operating profit• Unsatisfying sales development – Two stores are affected by major road work – Strategic locations in the future5
  6. 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 products6
  7. 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 work7
  8. 8. Market trends 2011• Uncertain market development• Competition remains high• Price conscious customers• Average food price inflation of around 2%8
  9. 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 share9
  10. 10. Axfood’s goal 2011 To achieve an operating profit at least at the same level as in 201010
  11. 11. Financial Overview April – June, 201111
  12. 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. 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 -1113
  14. 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. 15. PrisXtra April – June 2011 • Positive result • Unsatisfying sales developmentPrisXtra, SEK m 2011 2010 ChangeNet sales 142 161 - 11.8%Operating profit 4 -3 -Operating margin 2.8% - 1.9% -15
  16. 16. Axfood Närlivs April – June 2011• Good sales growth – New agreements – Easter sales – Favourable weatherAxfood Närlivs, SEK m 2011 2010 ChangeNet sales 1,691 1,491 + 13.4%Operating profit 36 34 + 5.9%Operating margin 2.1% 2.3% -16
  17. 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. 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. 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. 20. Financial targets & dividend policy• Axfoods 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. 21. Summary• Strong result – Good cost control• Stable sales performance21
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