Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q2 2024 Earnings Presentation
33 slides from Axfood Ab's earnings presentation, 2024
Slide 1: Strengthened market positions but weak quarter in Dagab
Strengthened market positions but weak quarter in Dagab Interim report Q2 2024
Slide 2: Agenda
Interim report Q2 2024 2 Agenda –Q2 2024 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q2 and market update
Interim report Q2 2024 3 Q2 and market update
Slide 4: Market development and inflation
Interim report Q2 2024 4 Market development and inflation Total market (Food Retail Trade Index), y-o-y sales growth* Food price inflation y-o-y** % Total growth* Growth adjusted for price** and calendar effects* % 15 30 10 9.2 8.7 25 8.2 7.6 6.2 6.0 6.4 5.4 20.1 5 20 2.8 2.2 2.3 17.8 1.3 0.1 0 15 1
Slide 5: Significant market outperformance by Axfood over two years
Interim report Q2 2024 5 Significant market outperformance by Axfood over two years Retail sales y-o-y growth, total including e-commerce Retail sales two-year stack, total including e-commerce % Axfood retail sales Food retail trade index % Axfood retail sales Food retail trade index 35 35 30 30 25
Slide 6: Consistent market outperformance by Axfood online
Interim report Q2 2024 6 Consistent market outperformance by Axfood online Retail sales y-o-y growth, e-commerce Retail sales two-year stack, e-commerce % Axfood online sales* Food retail trade index online % Axfood online sales* Food retail trade index online 30 100 25 95 90 20 15 85 16.7% 15 10 7.
Slide 7: Group net sales
Interim report Q2 2024 7 Group net sales Continued Willys and Hemköp momentum, softer Dagab sales Net sales, SEK m +1.2% 21,044 –Net sales increased by 1.2% 18,468 20,797 –Higher volumes and continued positive inflow of customers 13,570 13,903 –Solid growth for Willys and strong like-for-like growth
Slide 8: Group operating profit
Interim report Q2 2024 8 Group operating profit Lower profit due to softer earnings in Dagab and extraordinary costs Adj. operating margin, %* -11.3% Adj. operating profit, SEK m* 942 –Operating profit SEK 836 m (878), adjusted 828 836 operating profit* SEK 836 m (942) 605 661 –Solid profit developm
Slide 9: Willys
Interim report Q2 2024 9 Willys Growth higher than the market despite exceptionally high comps –Net sales increased by 2.6% and LFL 1.3% –Growth higher than the market despite exceptional comps Operating margin, % +2.6% –Work to secure price position Net sales, SEK m –Continued strong loyalty among
Slide 10: Willys is Sweden's most recommended food retail chain
Interim report Q2 2024 10 Willys is Sweden’s most recommended food retail chain Customer willingness to recommend (net promoter score, NPS) Customer satisfaction index (NKI) Willys Main competitor 1 Main competitor 2 Willys Main competitor 1 Main competitor 2 40 80 30 75 20 70 10 65 0 60 2018 2019 2
Slide 11: Hemköp
Interim report Q2 2024 11 Hemköp Growing faster than the market, strong like-for-like development –Net sales increased by 5.2% –Retail sales LFL growth of 4.6%, total 2.5% Operating margin, % Net sales, SEK m +5.2% –Growth higher than the market –Strengthened profile with focus on assortment, 1,957
Slide 12: Hemköp has increased customer satisfaction in recent years
Interim report Q2 2024 12 Hemköp has increased customer satisfaction in recent years Customer satisfaction index (NKI) Hemköp Main competitor 2 Main competitor 1 Main competitor 3 80 75 70 65 60 55 50 2018 2019 2020 2021 2022 2023 2024 Source: Competitor benchmarking study conducted by YouGov.
Slide 13: Snabbgross
Interim report Q2 2024 13 Snabbgross Growth in a softer market –Net sales increased by 1.9% and LFL 1.5% –Softer market development impacted B2B sales to Operating margin, % restaurants and cafés, however, increase in number +1.9% of customers Net sales, SEK m –Good growth for Snabbgross Club with c
Slide 14: Dagab
Interim report Q2 2024 14 Dagab Profit decline from softer sales development and costs related to new logistics structure –Net sales increased by 0.8% –Growth driven by sales to Group-owned stores, softer +0.8% Adj. operating margin, %* development to external customers including smaller stores –Neg
Slide 15: Financial position
Interim report Q2 2024 15 Financial position
Slide 16: First half sales and operating profit development
Year-end report 2023 16 First half sales and operating profit development Net sales, SEK m Adj. operating profit, SEK m* Adj. operating margin, %* +3.1% -2.3% 40,049 41,296 1,692 1,653 -0.2 4.2% 4.0% H1 H1 H1 H1 H1 H1 2023 2024 2023 2024 2023 2024 *Excluding items affecting comparability.
Slide 17: Cash generation analysis
Interim report Q2 2024 17 Cash generation analysis –Lower cash flow from operating activities, Cash flow from primarily due to changes in working capital –Working capital negatively impacted by calendar effects operating activities, SEK m –Lower investment levels than in the prior year –Prior year p
Slide 18: Financial position and investments
Interim report Q2 2024 18 Financial position and investments 10,226 10,247 9,750 9,843 24.3% 24.1% 3,547 9,339 23.9% 21.8% 2,593 24.8% Guidance 1,946 1,600 21.1% -1,700 19.5% 19.9% 19.9% 1.8 1.7 1.5 1.5 1.5 1,031 6.1% 1,108 3.5% 714 1.9% 2.4% 1.7% 1.4% 1.2% 2.8% 0.3 0.3 0.1 1.5% 1.4% 0.0 0.0 1.3% 1.
Slide 19: Capital efficiency
Interim report Q2 2024 19 Capital efficiency 16,442 17,212 16,907 -3.4% -3.9% -3.5% -3.2% -3.5% 13,550 Net working capital 10,674 % of Group net sales -1,800 -2,260 24.2% 22.4% 20.9% 20.3% 21.0% -2,581 -2,620 -3.5% -2,870 2020 2021 2022 2023 R12M to 2020 2021 2022 2023 R12M to Jun. 2024 Jun. 2024 Ne
Slide 20: Strategic agenda, outlook and summary
Interim report Q2 2024 20 Strategic agenda, outlook and summary
Slide 21: Continued ramp-up and optimisation of logistics structure
Interim report Q2 2024 21 Continued ramp-up and optimisation of logistics structure Ramp-up of Bålsta logistics centre Strengthening the Backa warehouse Work on efficiencies in Landskrona – Facility operational in all temperature zones – Intensified work to expand and automate – Automation fully ins
Slide 22: Ramp-up of logistics structure driving short-term costs
Interim report Q2 2024 22 Ramp-up of logistics structure driving short-term costs –Inefficiencies in ramp-up phase –Operating with high costs for staffing and transports to ensure safe transition and stability in deliveries –Rebalancing of volumes to optimise flows –Convenience trade volumes to be h
Slide 23: City Gross acquisition a compelling deal
Interim report Q2 2024 23 City Gross acquisition a compelling deal Increased market presence and reach for Axfood Strengthening City Gross’ offering and operations Axfood takes clear position in the hypermarket segment, a segment City Gross’ competitiveness to be strengthened through concept in whic
Slide 24: Drastically reduced climate impact from transports
Interim report Q2 2024 24 Drastically reduced climate impact from transports Emissions from own transports, CO2e kg/tonne of goods 20 -48% 16.8 15 13.6 12.3 10.6 10 8.8 5 0 2021 2022 2023 Q1 Q2 2024 2024
Slide 25: Unchanged outlook 2024
Interim report Q2 2024 25 Unchanged outlook 2024 –Planned capital expenditures of SEK 1,600−1,700 m –Excluding acquisitions and leasehold –Including SEK 300 m for automation in the new logistics centre in Bålsta outside Stockholm, the distribution centre in Backa in Gothenburg and the new fruit and
Slide 26: Summary
Interim report Q2 2024 26 Summary Solid growth despite Increased volumes from Progress with new logistics Acquisition of City low inflation and continued high inflow structure, however, with Gross leads to growth exceptional comps of customers headwinds during the quarter opportunities
Slide 27: Q&A
Interim report @2 2024 Q&A 27 Axfood
Slide 28: Axfood at a glance
Interim report Q2 2024 28 R12M net sales to Q2 2024, SEK Employees (FTEs) 82.4bn 12,902 Efficient sourcing and logistics Customer reach for all brands and channels ~5 million customers a week Innovative development 339 Group-owned stores of private label products 133 franchise Hemköp 124 franchise T
Slide 29: Axfood
Interim report Q2 2024 29 Axfood Q2 Q2 H1 H1 Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 Net sales 21,044 20,797 1.2% 41,296 40,049 3.1% 81,111 Operating margin, % Change in like- 2.3% 13.8% -11.5 4.1% 15.6% -11.5 12.0% for-like sales* Net sales, SEK m 81,111 82,357 Operating profit 836 878 -4
Slide 30: Willys
Interim report Q2 2024 30 Willys Q2 Q2 H1 H1 Operating margin, % Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 Net sales, SEK m 43,757 44,819 Net sales 11,305 11,023 2.6% 22,550 21,487 4.9% 43,757 37,451 Change in like- 1.3% 16.4% -15.1 3.4% 18.8% -15.4 13.9% 31,793 32,424 for-like sales Operati
Slide 31: Hemköp
Interim report Q2 2024 31 Hemköp Q2 Q2 H1 H1 Operating margin, % Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 Net sales, SEK m Net sales 1,957 1,860 5.2% 3,912 3,677 6.4% 7,432 7,432 7,667 6,650 Change in like- 6,354 6,202 for-like sales* 4.6% 8.6% -4.0 5.8% 9.0% -3.2 7.9% 4.4 4.3 4.5 Operating
Slide 32: Snabbgross
Interim report Q2 2024 32 Snabbgross Operating margin, % Q2 Q2 H1 H1 Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 5,317 5,376 Net sales 1,516 1,488 1.9% 2,695 2,635 2.3% 5,317 4,727 Change in like-for- 1.5% 12.2% -10.7 1.5% 15.1% -13.6 10.4% 3,825 like sales 3,417 5.3 5.0 5.0 4
Slide 33: Dagab
Interim report Q2 2024 33 Dagab Operating margin, % Q2 Q2 H1 H1 Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 74,175 75,092 66,999 Net sales 19,157 19,005 0.8% 37,675 36,757 2.5% 74,175 52,295 Operating profit 247 287 -13.9% 516 494 4.5% 1,021 48,091 1.8 Adjusted operating 1.7 2