Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q1 2015 Earnings Presentation
21 slides from Axfood Ab's earnings presentation, April 2015
Slide 1: Axfood January-March 2015
Axfood January-March, 2015 Anders Strålman CEO 1
Slide 2: Axfood – continued positive growth
Axfood – continued positive growth • Net sales: SEK 9,566 m (8,946) +6.9% • Operating profit: SEK 329 m (246) +33.7% • Strong results in all business units • Attractive customer offerings • Improved logistics Net sales 2
Slide 3: Willys - good sales growth
Willys - good sales growth • Net sales: SEK 5,261 m (4,941) +6.5% – Like-for-like sales: +4.3% • Operating profit: SEK 172 m (170) +1.2% – Operating margin: 3.3% (3.4) • Improved customer offerings with Willys+ Net sales 3
Slide 4: Hemköp - continued good sales growth
Hemköp - continued good sales growth • Net sales: SEK 1,401 m (1,355) +3.4% – Like-for-like sales: +4.2% • Operating profit: SEK 50 m (35) – Operating margin: 3.6% (2.6) • Improved customer programme Like-for-like sales 4
Slide 5: Axfood Sverige – modern supply chain organization
Axfood Sverige – modern supply chain organization • Net sales: SEK 9,265 m (8,077) +14.7% • Operating profit: SEK 125 m (72) • High level of private label: 27.1 % (25.6) • High delivery reliability – Improved efficiency • Last year’s result was affected by higher costs due to the implementation of t
Slide 6: Axfood Närlivs - stable growth
Axfood Närlivs - stable growth • Net sales: SEK 595 m (545) +9.2 % • Operating profit: SEK 19 m (7) • Last year’s result was affected by higher costs due to the implementation of the new business system • E-commerce in B2B Net sales 6
Slide 7: Market outlook
Market outlook • Stable growth in food retail market • Low food price inflation – 1-2% expected for 2015 • Weakened Swedish Krona due to the negative interest rate • Raised social security expenses for young employees 7
Slide 8: Strategy for profitable growth
Strategy for profitable growth • Develop the various concepts – Modernize both Willys and Hemköp stores – Attractive customer offerings • Development of modern supply chain organization • High level of private label share 8
Slide 9: Axfood's goal for 2015
Axfood’s goal for 2015 Exceed the level of profit in 2014 9
Slide 10: Financial overview January-March, 2015
Financial overview January-March, 2015 Karin Hygrell-Jonsson CFO 10
Slide 11: Axfood January-March 2015
Axfood January-March 2015 • Continued positive sales performance and a strong result Net sales, SEK m Operating margin, % Key ratios Q1 Q1 SEK m 2015 2014 Change 9,804 9,756 9,978 9,566 Net sales 9,566 8,946 6.9% 8,946 Change in like-for-like sales, 4.3% -2.3% 6.6 % 4.6 Operating profit 329 246 33.7
Slide 12: Willys January-March 2015
Willys January-March 2015 • Good sales performance and stable earnings Net sales, SEK m Operating margin, % Key ratios Q1 Q1 SEK m 2015 2014 Change 5 374 5 243 5 416 5 261 4 941 Net sales 5,261 4,941 6.5% Change in like-for-like sales, 4.3% -3.1% 7.4 % 4.1 4.6 3.4 4.4 Operating profit 172 170 1.2% 3
Slide 13: Hemköp January-March 2015
Hemköp January-March 2015 • Continued good sales growth for like-for-like sales • Stable and improved profitability Net sales, SEK m Operating margin, % Key ratios 1,454 1 ,401 Q1 Q1 1,364 1,355 1 ,337 SEK m 2015 2014 Change Net sales 1,401 1,355 3.4% Change in like-for-like sales, 4.2% 0.5% 3.7 4.5
Slide 14: Axfood Närlivs January-March 2015
Axfood Närlivs January-March 2015 • Continued good sales growth in the cash and carry business • Improved profitability Net sales, SEK m Operating margin, % Key ratios Q1 Q1 668 677 632 SEK m 2015 2014 Change 545 9.5 595 Net sales 595 545 9.2% 6.3 Operating profit 19 7 171.4% 4.0 3.2 Operating margi
Slide 15: Axfood Sverige January-March 2015
Axfood Sverige January-March 2015 • Improved results due to higher efficiency • Last year’s result was affected by higher costs due to the implementation of the new business system Net sales, SEK m Operating margin, % Key ratios 8,948 9,097 Q1 Q1 8,077 9,265 8,829 SEK m 2015 2014 Change Net sales 9,
Slide 16: Joint-Group January-March 2015
Joint-Group January-March 2015 • Joint-Group functions: – Executive Committee – Finance/Accounting – Corporate Communications – Business Development – HR – IT • Operating profit: SEK -37 m (-38) 16
Slide 17: Key ratios January-March 2015
Key ratios January-March 2015 • Balance sheet, total: SEK 9,170 m (8,622) • Cash flow operating activity: SEK 518 m (413) • Capex: SEK 164 m (163) Capital expenditure, SEK m – Investment plan 2015: SEK 700-800 m 993 932 862 806 643 2010 2011 2012 2013 2014 17
Slide 18: Stock split
Stock split 4:1 • The first day of trading after the split was 17th of April 18
Slide 19: Financial targets & dividend policy
Financial targets & dividend policy • Axfood’s goal for 2015 is to exceed the level of profit in 2014 • Equity ratio of at least 25% • Shareholder dividend of at least 50% of profit for the year after tax • Long term target for an operating margin of 4% 19
Slide 20: Summary financial development
Summary financial development • Good sales development and strong result 20
Slide 21: Q&A
Q&A 21