Axfood AB · OMXSTO:AXFO
Axfood AB — H1 2007 Earnings Presentation
20 slides from Axfood AB's earnings presentation, July 2007
Slide 1: Axfood AB 1 January – 30 June 2007
Axfood AB 1 January – 30 June 2007
Slide 2: Axfood AB 1 January–30 June 2007
Axfood AB 1 January–30 June 2007 Consolidated sales for the period: SEK 14,335 m (14,198) Continued good operating profit: SEK 537 m (501) The EBIT-margin for the first half year reached 3.7% (3.5) Sharpening competition on local markets put pressure on sales development, both Willys and Hemköp 2 JU
Slide 3: Axfood AB 1 January – 30 June 2007
Axfood AB 1 January – 30 June 2007 Consolidated sales for the period: SEK 14,335 m (14,198) Consolidated sales in Q2: SEK 7,392 m (7,378) Operating profit for the period: SEK 537 m (501). Operating margin: 3.7% (3.5) Operating profit in Q2: SEK 279 m (275). Operating margin: 3.8% (3.7) Retail sales
Slide 4: Businesses 1 January–30 June 2007: Willys
Businesses 1 January–30 June 2007 Sales for the Willys group in the period: SEK 7,590 m (7,476) Sales for the Willys group rose 1.5 % during the period. Like-for-like sales rose 1.0 % Sales in Q2: SEK 3,885m (3,884) Operating profit for the period was SEK 303 m (255) .The operating margin was 4.0 %
Slide 5: Businesses 1 January–30 June 2007: Hemköp
Businesses 1 January–30 June 2007 Sales for Hemköp's stores, wholly owned and franchises, rose 0.9 % during the period. Like-for-like rose 0.7%. In Q2 sales for Hemköp's stores, wholly owned and franchises, rose 0.8% and like- for-like 0.2 % Operating profit for the period: SEK 39 m (30). Operating
Slide 6: Businesses 1 January–30 June 2007: Närlivs
Businesses 1 January–30 June 2007 Närlivs Sales amounted in the period to SEK 2,636 m (2,623). 149 stores Sales in Q2: SEK 1,434 m (1,420). Operating profit for the period was SEK 42 m (45) 230 stores The operating margin for the period was 1.6 % (1.7%) Operating profit in Q2: SEK 30 m (35) 6 JULY 2
Slide 7: Businesses 1 January–30 June 2007: Dagab
Businesses 1 January–30 June 2007 Dagabs sales during the period totalled SEK 10,462 m (10,089) Sales in Q2: SEK 5,404 m(5,288) Operating profit for the period was SEK 55 m (103). Operating margin was 0.5% (1.0%) Operating profit for Q2: SEK 18 m (55) Continuous development and improvement actvities
Slide 8: Agenda H2 2007
Agenda H2 2007 Hemköp – revision of pricing and assortment strategy to better meet the customer’s demand Loyalty card Hemköp to be launched Environmental impact Private label strategy Dagab: New storage facilities 8 JULY 2007 | AXFOOD
Slide 9: Outlook H2
Outlook H2 Continued focus on profitable growth Increased activity in stores to push sales Higher cost level might affect consumer prices – active agenda to reduce impact 9 JULY 2007 | AXFOOD
Slide 10: Forecast
Forecast Axfood confirms its previously issued forecast for the year: Operating profit for 2007 to be in level with 2006, excluding the compensation of SEK 89 m from the settlement with the Vi retailers' association. 10 JULY 2007 | AXFOOD
Slide 11: Financial Performance January - June 2007
Financial Performance January - June 2007 11 JULY 2007 | AXFOOD
Slide 12: Key ratios
Key ratios Apr.-June Jan.-June Jan.-Dec. SEK m 2007 2006 20067 2006 2006 Net sales 7 392 7 378 14 335 14 198 28 808 Operating profit 279 275 537 501 1 204 1 Operating margin, % 3,8 3,7 3,7 3,5 3,9 Profit after financial items 267 268 520 491 1 183 Profit after tax 192 192 374 353 852 2 Earnings per
Slide 13: Change in store structure
Change in store structure Establish- Sales/ Conversions Dec. 2006 ment Acquisitions closures to/from June 2007 Hemköp 76 1 - - - 77 Willys1) 148 2 - -6 - 144 Total, wholly owned 224 3 - -6 - 221 Hemköp franchises 82 - 2 - - 84 1) Of which Willys hemma 43 - - -2 - 41 13 JULY 2007 | AXFOOD
Slide 14: Net sales, own and franchise
Net sales, own and franchise Apr.-June Like-for-like Jan.-June Like-for-like 1) 1) 1) 2007, SEK m % sales % 2007, SEK m % sales %1) Hemköp 1 392 -4,1 -1,2 2 792 -4,1 -0,5 Hemköp franchise 937 9,3 2,3 1 795 9,8 2,9 Hemköp total 2 329 0,8 0,2 4 587 0,9 0,7 Willys total 3 885 0,0 -0,1 7 590 1,5 1,0 Tot
Slide 15: Net sales, per business unit
Net sales, per business unit Apr.-June Jan.-June Jan.-Dec. SEK m 2007 2006 2007 2006 2006 Hemköp 1 406 1 465 2 819 2 937 5 829 Willys 3 885 3 884 7 590 7 476 15 115 1 Axfood Närlivs 1 434 1 420 2 636 2 623 5 465 2 Dagab 5 404 5 288 10 462 10 089 20 572 3 Other 274 235 535 469 947 4 Internal sales -5
Slide 16: Operating profit for the period (EBIT), broken down by business unit
Operating profit for the period (EBIT), broken down by business unit Apr.-June Jan.–June Jan.–Dec. SEK m 2007 2006 2007 2006 2006 Hemköp 20 11 39 30 79 Willys 163 145 303 255 558 Axfood Närlivs 30 35 42 45 108 Dagab 18 55 55 103 226 Other 3 } 48 } 66 29 } 84 98 } 153 68 }171 233 Operating profit for
Slide 17: Condensed balance sheet
Condensed balance sheet SEK m 30/6/2007 30/6/2006 31/12/2006 Assets Goodwill 1 131 1 131 1 131 Interest-bearing receivables 25 – 24 Financial non-current assets 29 31 31 Other non-current assets 1 704 1 733 1 736 Total non-currant assets 2 889 2 895 2 922 Inventories 1 483 1 469 1 473 Accounts recei
Slide 18: Condensed balance sheet, cont
Condensed balance sheet, cont Shareholders' equity and liabilities Equity attributable to equity holders of the parent 1 745 1 988 2 420 Total shareholders' equity 1 745 1 988 2 420 Interest-bearing non-current liabilities 587 384 385 Noninterest-bearing non-current liabilities 162 156 157 Total non
Slide 19: Condensed cash flow statement
Condensed cash flow statement Jan.-June Jan.-Dec. SEK m 2007 2006 2006 Operating activities –Cash flow from operating activities before changes in working capital before paid tax 755 734 1 693 –Paid tax -237 -524 -684 –Changes in working capital -3 115 151 Cash flow from changes in working capital 5
Slide 20: Summary financial development
Summary financial development Stable and positive result Sales development is not satisfactory Strong balance sheet 20 JULY 2007 | AXFOOD