Axfood AB · OMXSTO:AXFO
Axfood AB — Q2 2012 Earnings Presentation
22 slides from Axfood AB's earnings presentation, July 2012
Slide 1: Axfood January-June 2012
Axfood January-June, 2012 axtood
Slide 2: Axfood Q2 2012
Axfood Q2 2012 Net sales • Favourable sales growth: SEK 9,292 m (8,889) +4.5% 9,292 – Increased number of customers +4.5% • Good operating profit: SEK 320 m (317) +0.9% • Operating margin: 3.4% (3.6) • Positive result for all business units 2
Slide 3: Willys – Strong result and good sales growth
Willys – Strong result and good sales growth • Strong earnings: SEK 218 m (205) +6.3% – Operating margin: 4.4% (4.3) • Stable sales growth: SEK 4,961 m (4,805), +3.2% • 90 stores in total are now modernized – Remaining 25 stores will be modernized Operating profit during the coming two years 218 +6.
Slide 4: Hemköp – Good sales growth
Hemköp – Good sales growth • Good sales growth: SEK 1,271 m (1,184), +7.3% – Like-for-like sales: +2.5% • Stable profit: SEK 22 m (23) – Operating margin: 1.7% (1.9) • New store in central Stockholm opened in April Like-for-like sales • Target 2012: 3% operating margin +2.5% 4
Slide 5: PrisXtra – Continued positive result
PrisXtra – Continued positive result • Positive result: SEK 5 m (4) • Decrease in sales due to major road constructions – Net sales: SEK 130 m (142), -8.5% – Future strategic locations 5
Slide 6: Axfood Närlivs – Wholesale operation
Axfood Närlivs – Wholesale operation Net sales • Good sales growth due to new businesses – Net sales: SEK 1,673 m (1,467), + 14.0% +14.0% • Like-for-like sales and result affected by less favourable weather – Operating profit: SEK 28 m (36) • Agreement signed with MatHem on the sale of Netxtra • New
Slide 7: Dagab – Efficient logistics
Dagab – Efficient logistics • Stable development and efficiency – Good productivity and delivery reliability • Operating profit: SEK 40 m (41) • Result affected by: – Increased costs due to implementation of the new business system Delivery reliability 97.1% 7
Slide 8: Market outlook 2012
Market outlook 2012 • Uncertain market development • Food price inflation at low levels • Continued tough competition • Price conscious customers 8
Slide 9: Strategy for profitable growth 2012
Strategy for profitable growth 2012 • Stimulate sales growth – Well operated stores • Increased private label share • Efficiency and cost control • Ambitious pace of investment – Continued high pace in store renewals – Implementation of the new business system continues 9
Slide 10: Axfood's goal for 2012
Axfood’s goal for 2012 Achieve an operating profit at the same level as in 2011 10
Slide 11: Financial Overview
Financial Overview January-June, 2012 11
Slide 12: Axfood Q2 2012
Axfood Q2 2012 Net sales, SEK m Operating margin, % Key ratios 9,292 Q2 Q2 Change 8,889 8,735 8,914 8,718 SEK m 2012 2011 Net sales 9,292 8,889 4.5% Change in like-for-like sales, 0.5% 0.5% - %, Group-owned 4.2 3.6 3.6 3.4 2.8 Operating profit 320 317 0.9% Operating margin, % 3.4% 3.6% -0.2 Q2 -11 Q
Slide 13: Willys Q2 2012
Willys Q2 2012 Net sales, SEK m Operating margin, % Key ratios Q2 Q2 Change 4,961 SEK m 2012 2011 4,805 4,706 4,848 4,701 Net sales 4,961 4,805 3.2% Change in like-for-like sales, 0.2% 0.6% -0.4 4.5 % 4.3 4.4 4.1 3.6 Operating profit 218 205 6.3% Operating margin, % 4.4% 4.3% 0.1 Q2 -11 Q3 -11 Q4 -1
Slide 14: Hemköp Q2 2012
Hemköp Q2 2012 Net sales, SEK m Operating margin, % Key ratios Q2 Q2 Change SEK m 2012 2011 1,255 1,271 1,239 1,184 1,143 Net sales 1,271 1,184 7.3% Change in like-for-like sales, 2.5% 1.1% 1.4 %, Group-owned Operating profit 22 23 - 4.3% 3.0 1.9 1.9 1.9 1.7 Operating margin, % 1.7% 1.9% - 0.2 Numbe
Slide 15: PrisXtra Q2 2012
PrisXtra Q2 2012 Net sales, SEK m Operating margin, % Key ratios Q2 Q2 Change SEK m 2012 2011 142 140 132 130 Net sales 130 142 -8.5% 123 3.8 Change in like-for-like sales, 3.6 -8.5% -7.8% -0.7 2.8 3.0 % Operating profit 5 4 25.0% -0.8 Operating margin, % 3.8% 2.8% 1.0 Q2 -11 Q3 -11 Q4 -11 Q1 -12 Q2
Slide 16: Axfood Närlivs Q2 2012
Axfood Närlivs Q2 2012 Net sales, SEK m Operating margin, % Key ratios Q2 Q2 Change SEK m 2012 2011 1,673 1,467 1,483 Net sales 1,673 1,467 14.0% 1,382 1,441 3.0 Distributed sales 1,531 1,322 15.8% 2.5 Operating profit 28 36 -22.2% 1.7 1.7 Operating margin, % 1.7% 2.5% -0.8 0.6 Number of stores, 20
Slide 17: Dagab Q2 2012
Dagab Q2 2012 Net sales, SEK m Operating margin, % Key ratios Q2 Q2 Change SEK m 2012 2011 6,199 6,273 6,264 6,016 6,022 Net sales 6,264 6,199 1.0% Distributed sales 4,315 4,305 0.2% 0.9 0.9 0.7 0.6 Operating profit 40 41 -2.4% 0.5 Operating margin, % 0.6% 0.7% -0.1 Q2 -11 Q3 -11 Q4 -11 Q1 -12 Q2 -1
Slide 18: Other Q2 2012
Other Q2 2012 • Sales: SEK 1,162 m (1,079) • Operating profit: SEK 7 m (8) 18
Slide 19: Key ratios January-June 2012
Key ratios January-June 2012 • Balance sheet, total: SEK 8,639 m (7,975) • Cash flow operating activity: SEK 970 m (638) • Capex: SEK 214 m (268) – Investment plan 2012: SEK 900 – 1,000 m (993) 19
Slide 20: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2012 is to achieve an operating profit at the same level as in 2011 • 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% 20
Slide 21: Summary
Summary • Stable result • Good sales development 21
Slide 22: Axfood Q&A
Axfood Q&A 22