Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q2 2023 Earnings Presentation
32 slides from Axfood Ab's earnings presentation, 2023
Slide 1: Continued strong growth despite lower inflation
Continued strong growth despite lower inflation Interim report Q2 2023
Slide 2: Agenda
Interim report Q2 2023 2 Agenda –Q2 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q2 and market update
Interim report Q2 2023 3 Q2 and market update
Slide 4: Market development and inflation
Interim report Q2 2023 4 Market development and inflation Total market (Food Retail Trade Index), y-o-y sales growth (calendar adjusted)* Food price inflation y-o-y by month** % % 26 26 24 24 -8.5pp 22 21.0 22 19.6 20 18.2 19.7 20 18.1 18 17.2 16.9 18 16.1 16 16 14.0 14.2 14 13.5 14 12.5 12 11.2 12
Slide 5: Axfood continued to outperform the market
Interim report Q2 2023 5 Axfood continued to outperform the market Retail sales development, total including e-commerce Retail sales development, e-commerce % Axfood retail sales Food retail trade index % Axfood online sales* Food retail trade index online 30 30 25 20 20 10 8.7% 16.6% 15 0 -2.5% 10
Slide 6: Group net sales
Interim report Q2 2023 6 Group net sales Strong growth despite Net sales, SEK m +12.6% significantly lower inflation 18,468 20,797 13,038 13,570 13,903 –Net sales increased by 12.6% –High food price inflation, although lower rate sequentially compared to first quarter –Continued high inflow of new c
Slide 7: Group operating profit
Interim report Q2 2023 7 Group operating profit Adj. operating margin, %* +13.8% Higher profit driven by strong Adj. operating profit, SEK m* 942 sales growth, stable margin 828 661 601 605 4.8 4.5 4.5 –Operating profit SEK 878 m (789), adjusted 4.6 4.5 operating profit* SEK 942 m (828) –Higher prof
Slide 8: Willys: Exceptional growth more than double the rate of the market
Interim report Q2 2023 8 Willys Exceptional growth more than double the rate of the market Operating margin, % Net sales, SEK m +19.8% 11,023 –Net sales increased by 19.8% and LFL 16.4% 9,204 –Exceptionally strong performance by Willys chain with high 8,068 8,141 inflow of new customers, growth doub
Slide 9: Willys: Sweden's most recommended retail chain
Interim report Q2 2023 9 Willys Sweden’s most recommended retail chain, strengthening the brand Customer willingness to recommend (net promoter score, NPS) Willys Competitor 2 Competitor 4 Competitor 1 Competitor 3 30 15 #21 All time high ranking, up from #43 in 2022 0 2016 2017 2018 2019 2020 2021
Slide 10: Hemköp: Continued positive development, growth higher than the market
Interim report Q2 2023 10 Hemköp Continued positive development, growth higher than the market Operating margin, % Net sales, SEK m +11.9% 1,860 –Net sales increased by 11.9% 1,661 1,614 1,591 –Retail sales increased 10.4% which was higher 1,554 than the market, LFL 8.6% –More favorable development
Slide 11: Hemköp: Strengthening its position with advances in many areas
Interim report Q2 2023 11 Hemköp Strengthening its position with advances in many areas High pace in modernising Improvement of ”Alltid bra pris” Strenghtened Enhanced offering existing stores (Always a good price) offering sustainability position of meal kit solutions
Slide 12: Snabbgross: Strong growth despite somewhat weaker market trends
Interim report Q2 2023 12 Snabbgross Strong growth despite somewhat weaker market trends, good profitability Operating margin, % +14.6% Net sales, SEK m 1 488 1 299 –Net sales increased by 14.6% and LFL 12.2% –Strong growth which was higher than the market, 971 stable volume development 924 859 –Sol
Slide 13: Dagab: Higher operating profit from strong growth and synergies
Interim report Q2 2023 13 Dagab Higher operating profit from strong growth and Bergendahls Food synergies Adj. operating margin, %* +13.5% Net sales, SEK m 19,005 16,746 –Net sales increased by 13.5% –Growth mainly driven by increased sales to food retail stores 12,152 12,488 11,509 –Operating profi
Slide 14: Financial position
Interim report Q2 2023 14 Financial position
Slide 15: Strong first half of the year
Interim report Q2 2023 15 Strong first half of the year Net sales, SEK m Adj. operating profit, SEK m* Adj. operating margin, %* +14.2% +14.3% 40,049 1,692 0.0 35,061 1,480 4.2% 4.2% Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q 2023 *Excluding items affecting comparability.
Slide 16: Cash generation analysis
Interim report Q2 2023 16 Cash generation analysis –Higher cash flow from operating activities, Cash flow from primarily due to changes in working capital –Reversal of negative effect in first quarter due to inventory operating activities build-up ahead of Easter 1,844 –Lower cash flow from investme
Slide 17: Financial position and investments
Interim report Q2 2023 17 Financial position and investments 10,889 3,547 10,226 24.3% 24.8% 8,982 24.6% 21.8% 7,005 6,868 24.1% 2,593 Guidance 1,800 19.9% 19.5% 19.9% 19.9% -1,900 1.9 1.8 1.6 1.2 1.2 1,481 1,435 1,031 6.1% 1,108 0.4 0.3 4.2% 4.2% 4.1% 3.6% 2.9% 3.5% 2.8% 0.1 0.1 0.0 4.1% 3.7% 1.9%
Slide 18: Capital efficiency
Interim report Q2 2023 18 Capital efficiency 16,442 16,452 -3.0% -3.4% -3.4% -3.5% 13,550 -3.9% 10,178 10,674 -1,513 -1,800 -2,260 30.1% NWC % of net sales, R12M -3.4% 24.2% 22.4% 20.9% 20.6% -2,581 -2,645 2019 2020 2021 2022 R12M to 2019 2020 2021 2022 R12M to 30 June 30 June 2023 2023 Net working
Slide 19: Strategic agenda, outlook and summary
Interim report Q2 2023 19 Strategic agenda, outlook and summary
Slide 20: Strategic focus areas
Interim report Q2 2023 20 Strategic focus areas Customer Customer Expansion Supply chain Work approach Our people offering meeting Axfood will grow in Axfood will develop Axfood is to be a Axfood aspires to be the Axfood will offer an With relevant concepts new and existing areas a sustainable produ
Slide 21: Ramp-up of logistics centre in Bålsta
Interim report Q2 2023 21 Ramp-up of logistics centre in Bålsta –Continued transition to new logistics platform with ramp-up of new and highly automated logistics centre in Bålsta outside Stockholm –Large volumes of dry goods redirected to Bålsta from other warehouses –Short-term delivery disruption
Slide 22: Save the date: Capital Markets Day 2023
Interim report Q2 2023 22 Save the date Capital Markets Day 2023 24 November 2023
Slide 23: Scaling up own solar energy capacity
Interim report Q2 2023 23 Scaling up own solar energy capacity New and planned solar panel facilities Share of electricity consumption from self-generated solar energy Hallstavik Onshore 92,000 Capacity Operational spring 2024 solar park solar panels 63 GWh 27% Bålsta Roof-mounted 16,000 Capacity Op
Slide 24: Unchanged outlook 2023
Interim report Q2 2023 24 Unchanged outlook 2023 –Planned capital expenditures of SEK 1,800−1,900 m –Excluding acquisitions and leasehold –Including SEK 400 m for the new logistics centre in Bålsta, in accordance with investment plan –Including SEK 170 m for the new fruit and vegetable warehouse in
Slide 25: Summary
Interim report Q2 2023 25 Summary –Strong growth despite significantly lower inflation –Increased market share and continued high inflow of new customers –Progress with transformation to new logistics platform –Strong financial position and solid strategic agenda to further strengthen market positio
Slide 26: Q&A
Interim report @2 2023, Q&A 26 Axfood
Slide 27: Axfood at a glance
Interim report Q2 2022 27 R12 month net sales SEK Employees (FTEs) 78.5bn 12,643 Efficient sourcing and logistics Customer reach for all brands and channels ~4.5 million customers a week Innovative development of 334 Group-owned stores private label products 136 franchise Hemköp 131 franchise Tempo
Slide 28: Axfood
Interim report Q2 2023 28 Axfood Q2 Q2 H1 H1 Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 Net sales 20,797 18,468 12.6% 40,049 35,061 14.2% 73,474 Operating margin, % Change in like- 13.8% 8.5% 5.3 15.6% 5.8% 9.8 10.4% for-like sales* Net sales, SEK m 78,463 73,474 Operating profit 878 789 11.3
Slide 29: Willys
Interim report Q2 2023 29 Willys Q2 Q2 H1 H1 Operating margin, % Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 Net sales, SEK m Net sales 11,023 9,204 19.8% 21,487 17,621 21.9% 37,451 41,317 37,451 Change in like- 16.4% 11.2% 5.2 18.8% 7.6% 11.2 13.5% 31,793 32,424 for-like sales 29,029 Operatin
Slide 30: Hemköp
Interim report Q2 2023 30 Hemköp Q2 Q2 H1 H1 Operating margin, % Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 Net sales, SEK m Net sales 1,860 1,661 11.9% 3,677 3,250 13.1% 6,650 7,077 6,378 6,650 Change in like- 6,354 6,202 for-like sales* 8.6% 3.5% 5.1 9.0% 2.5% 6.5 4.5% 4.4 4.3 Operating pro
Slide 31: Snabbgross
Interim report Q2 2023 31 Snabbgross Operating margin, % Q1 Q1 H1 H1 Net sales, SEK m Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 5,129 Net sales 1,488 1,299 14.6% 2,635 2,233 18.0% 4,727 4,727 Change in like-for- 12.2% 29.3% -17.1 15.1% 27.3% -12.2 20.1% 3,443 3,825 like sales 3,417 5.3 5.0 5
Slide 32: Dagab
Interim report Q2 2023 32 Dagab Operating margin, % Net sales, SEK m Q2 Q2 H1 H1 Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 71,949 66,999 Net sales 19,005 16,746 13.5% 36,757 31,808 15.6% 66,999 52,295 Operating profit 287 233 23.4% 494 661 -25.4% 978 48,091 44,895 1.8 Adjusted operating 1.7