Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q3 2023 Earnings Presentation
32 slides from Axfood Ab's earnings presentation, 2023
Slide 1: Continued strong customer traffic and increased market share
Continued strong customer traffic and increased market share Interim report Q3 2023
Slide 2: Agenda
Interim report Q3 2023 2 Agenda –Q3 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q3 and market update
Interim report Q3 2023 3 Q3 and market update
Slide 4: Market development and inflation
Interim report Q3 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 quarter** % % 22 22 20.1 20 20 17.8 18 18 -5.4pp 16 16 14.5 14.5 14 14 12 12 -2.3pp 10 8.9 9.1 10 8.7 8.7 8 7.9 8.1 8 6.4 6 6 3.9 4.
Slide 5: Axfood continues to outperform the market
Interim report Q3 2023 5 Axfood continues 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 8.3% 15 13.2% 0 -0.6% 10
Slide 6: Group net sales
Interim report Q3 2023 6 Group net sales Net sales, SEK m Strong growth in all segments 20,293 18,674 12,731 13,426 13,723 –Net sales increased by 8.7% – High inflow of new customers – Food price inflation Q3 Q3 Q3 Q3 Q3 – Retail sales increased by 13.2% 2019 2020 2021 2022 2023 – Sales increase fro
Slide 7: Group operating profit
Interim report Q3 2023 7 Group operating profit Operating profit SEK m Increased profit from strong sales Operating margin excl. items affecting comparability, % growth, stable operating margin 1,015 1,095 796 811 715 –Operating profit SEK 1,036 m (975), adjusted 5.6 5.9 5.9 5.4 5.4 operating profit
Slide 8: Willys
Interim report Q3 2023 8 Willys Continuing to significantly outperform the market, strengthening loyalty Net sales, SEK m Operating margin, % 10,945 –Net sales increased by 15.8% and LFL 12.4% 9,450 –Continued exceptionally strong performance by Willys chain 7,259 7,862 7,873 with high inflow of new
Slide 9: Willys: Attracting new customers
Interim report Q3 2023 9 Willys Attracting new customers New members in Willys Plus by month on a rolling twelve-month basis 45,000 Average YTD 2023 40,000 35,000 Average 2022 30,000 25,000 Average 2021 20,000 15,000 10,000 5,000 0 Dec Mar Jun Sep Dec Mar Jun Sep ’21 ’22 ’22 ’22 ’22 ’23 ’23 ’23
Slide 10: Willys: High satisfaction among new customers
Interim report Q3 2023 10 Willys High satisfaction among new customers The past year has seen a large inflow of new customers to Willys, and a new consumer survey commissioned by Axfood reveals that the new customers 18% 81% 78% Share of consumers that Share of new customers Share of new customers s
Slide 11: Hemköp: Fourth consecutive quarter with growth higher than the market
Interim report Q3 2023 11 Hemköp Fourth consecutive quarter with growth higher than the market Net sales, SEK m Operating margin, % 1,779 –Net sales increased by 10.6% 1,514 1,483 1,459 1,608 –Retail sales increased 7.6% which was slightly higher than the market, LFL 6.4% 4. 3. 3. 3. 3. – More favor
Slide 12: Hemköp: Successful strategy driving growth
Interim report Q3 2023 12 Hemköp Successful strategy driving growth Hemköp growth outperforming the market supported by high pace in modernising stores, as well as strengthened value proposition, sustainability profile and assortment. Retail sales development, total including e-commerce % Hemköp ret
Slide 13: Snabbgross: Good growth and gaining market share
Interim report Q3 2023 13 Snabbgross Good growth and gaining market share Net sales, SEK m Operating margin, % 1,437 –Net sales increased by 8.6% and LFL 7.4% 1,324 1,132 – Good growth higher than the market 990 – Contribution from newly established stores and B2C sales 944 –Total store network 30 (
Slide 14: Dagab: Higher sales with stable profitability
Interim report Q3 2023 14 Dagab Higher sales with stable profitability Net sales, SEK m Adj. operating margin, % 18,410 16,971 –Net sales increased by 8.5% – Growth mainly driven by increased sales to food retail 11,995 12,211 11,152 –Operating profit SEK 280 m (253), adjusted operating profit* SEK
Slide 15: Financial position
Interim report Q3 2023 15 Financial position
Slide 16: 9M sales and operating profit
Interim report Q3 2023 16 9M sales and operating profit Net sales, Adj. operating Adj. operating SEK m profit, SEK m* margin, %* +12.3% +11.7% 0.0 60,342 2,787 53,735 2,496 4.6% 4.6% 9M 9M 9M 9M 9M 9M 2022 2023 2022 2023 2022 2023 * Excluding items affecting comparability.
Slide 17: Cash generation analysis
Interim report Q3 2023 17 Cash generation analysis – Lower cash flow from operating activities, Cash flow from operating activities primarily due to changes in working capital –Restructuring in logistics operations –Decrease in accounts payable due to capital expenditures 1,844 in the fourth quarter
Slide 18: Financial position and investments
Interim report Q3 2023 18 Financial position and investments 10,889 26.4% 3,547 10,226 10,247 24.6% 24.3% 8,982 22.2% 23.6% 24.0% 24.1% 2,593 22.7% 6,868 21.8% Guidance 1,800 -1,900 1,709 1.9 1,481 1,417 1.6 1.8 1.7 1,031 1.2 6.1% 4.2% 4.2% 3.6% 3.7% 0.4 0.3 0.3 0.1 0.0 3.5% 3.2% 1.9% 4.1% 2.3% 2.9%
Slide 19: Capital efficiency
Interim report Q3 2023 19 Capital efficiency 17,408 16,442 -3.0% 13,550 -3.4% -3.2% -3.5% 10,178 10,674 -3.9% -1,513 -1,800 -2,260 30.1% -2,581 -2,597 24.2% 22.4% 20.9% 20.5% NWC % of net sales, R12M -3.2% 2019 2020 2021 2022 R12M 2019 2020 2021 2022 R12M to to 30 30 September September 2023 2023 Ne
Slide 20: Strategic agenda, outlook and summary
Interim report Q3 2023 20 Strategic agenda, outlook and summary
Slide 21: Progress in developing the logistics of the future
Interim report Q3 2023 21 Progress in developing the logistics of the future The work on Axfood’s new logistics platform is proceeding with progress in the various parts of the Groups’ own supply chain. Continued ramp-up of Bålsta logistics centre, scaling Automation installed in Landskrona fruit an
Slide 22: "Food 2030" – together for a sustainable food industry
Interim report Q3 2023 22 “Food 2030” – together for a sustainable food industry The food industry is facing great challenges, and ensuring sustainability across the entire value chain requires joint efforts. Axfood's "Food 2030" report contains 125 proposals to improve Sweden's food strategy. Key a
Slide 23: Unchanged outlook 2023
Interim report Q3 2023 23 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 24: Summary
Interim report Q3 2023 24 Summary –Strong growth at more than twice the rate of the market resulted in increased market share –Continued high inflow of new customers, increased volumes –Focus on increased efficiency and reducing costs, significant new steps towards optimised and automated logistics
Slide 25: Capital Markets Day 2023
Interim report Q3 2023 25 Capital Markets Day 2023 24 November 2023, 9.00 am-1.00 pm (CET) More information and a preliminary agenda at axfood.com
Slide 26: Interim report Q3 2023 Q&A
Interim report @3 2023 26 Q&A Axfood
Slide 27: Axfood at a glance
Interim report Q3 2023 27 R12 month net sales SEK Employees (FTEs) 80.1 bn 13,269 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 key ratios
Interim report Q3 2023 28 Axfood Key ratios SEK m Q3 2023 Q3 2022 Chg 9M 2023 9M 2022 Chg 2022 Net sales 20,293 18,674 8.7 % 60,342 53,735 12.3 % 73,474 Change in like- 10.5 % 14.1 % -3.6 13.8 % 8.6 % 5.2 10.4% Net sales, SEK m Operating margin, % for-like sales* Operating profit 1,036 975 6.2 % 2,6
Slide 29: Willys
Interim report Q3 2023 29 Willys Q3 Q3 9M 9M Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 Net sales, SEK m Operating margin, % Net sales 10,945 9,450 15.8 % 32,432 27,071 19.8 % 37,451 42,813 37,451 Change in like- 12.4 % 18.3% -5.9 16.6 % 11.1% 5.5 13.5% for-like sales 31,793 32,424 29,029 Ope
Slide 30: Hemköp
Interim report Q3 2023 30 Hemköp Q3 Q3 9M 9M Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 Net sales, SEK m Operating margin, % Net sales 1,779 1,608 10.6 % 5,456 4,858 12.3 % 6,650 7,248 6,650 Change in like- 6,378 6,354 6.4 % 6.4 % 0.0 8.1 % 3.8 % 4.3 4.5% 6,202 for-like sales* Operating profi
Slide 31: Snabbgross
Interim report Q3 2023 31 Snabbgross Net sales, SEK m Operating margin, % Q3 Q3 9M 9M Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 5,242 Net sales 1,437 1,324 8.6 % 4,072 3,557 14.5 % 4,727 4,727 3,825 Change in like- 7.4 % 12.9 % -5.5 12.2 % 21.6 % -9.4 20.1% 3,443 3,417 for-like sales 5.3 Ope
Slide 32: Dagab
Interim report Q3 2023 32 Dagab Net sales, SEK m Operating margin, % Q3 Q3 9M 9M Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 2022 73,387 66,999 Net sales 18,410 16,971 8.5 % 55,167 48,780 13.1 % 66,999 52,295 Operating profit 280 253 10.4 % 773 915 -15.5 % 978 48,091 44,895 Adjusted operating 340 3