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Axfood AB
Interim Report
July – Sept, 2010
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Axfood AB July - September 2010
• Consolidated sales: SEK 8,582 m (8,049), an increase of 6.6%
• Stable operating profit: SEK 364 m (335)
• Operating margin: 4.2% (4.2)
• Strengthened market position
33
Willys July - September 2010
• Strong results
• Like for like sales affected by increased competition
• Increased market share– Growing number of stores– Improved shopping experience– Right price and product mix
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Hemköp July - September 2010
• Positive result and like for like sales– Successful marketing strategy
• New store in Stockholm City
• Targeting EBIT margin of 1% 2010
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PrisXtra July - September 2010
• Unsatisfying development
• Decrease in sales for two stores due to major road work
• Possible positive EBIT for full year
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Axfood Närlivs July - September 2010
• Increased sales and market share– New agreements– Relatively good weather
conditions
• EBIT margin affected by competitive market
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Dagab July - September 2010
• Strong service level
• Good cost control
• Satisfying cooperation with Vi-stores
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Market trends 2010
• Soft food retail market
• Food price inflation on moderate levels
• Fierce competition
• Price conscious customers
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Strategy for profitable growth
• Develop the various concepts
• Optimize store operations
• Stimulate sales growth
• Good cost control and efficiency
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Axfood´s goal for 2010
To achieve an operating profit at least at the same level as in 2009
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Financial Performance
July – Sep, 2010
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Axfood AB July - September 2010
• Strong result– Improved operating profit
-
+ 8.7%
+6.6 %
Change
4.2%4.2%Operating margin
335364 Operating profit
8,0498,582Net sales
20092010Group , SEK m
13
Willys July - September 2010
+6.3%
Sales Operating profit
-10 -09
4,3844,660
-10 -09
214 199
4.5%4.6%Operating margin
20092010
+7.5%
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Hemköp July - September 2010
Sales Operating profit
-10 -09
1,276 1,164
-10 -09
19
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1.5%0.9%Operating margin
20092010
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PrisXtra July - September 2010
• Decrease in sales for two stores due to major road work
-
0
- 7.7%
Change
0.6%0.7%Operating margin
11Operating profit
155143 Net sales
20092010PrisXtra, SEK m
1616
Axfood Närlivs July - September 2010
• Good sales developement– Distributed sales increased by 5.5 %
-
- 17.3%
+ 4.9%
Change
3.5%2.7%Operating margin
5243Operating profit
1,4981,571 Net sales
20092010Axfood Närlivs, SEK m
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Dagab July - September 2010
• Stable development
• Good cost control and efficiency
-
+ 52.6%
+ 7.3%
Change
0.6%0.9%Operating margin
3858 Operating profit
5,9466,379 Net sales
20092010Dagab, SEK m
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Other July - September 2010
• Sales: SEK 993 m (845)
• Operating profit: SEK 37 m (26)
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Key ratios January - September 2010
• Balance sheet, total: SEK 7,367 m (7,025)
• Cash flow operating activity: SEK 1 037 m (1 017)
• Capex: SEK 592 m (439)
• Equity ratio: 37.2% (34.6)
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Financial targets & dividend policy
• Axfood's goal for 2010 is to achieve an operating profit at least at the same level as in 2009
• 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%
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Summary
• Stable development
• Strong result
• Increased market share
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Time for questions!