Axfood AB · OMXSTO:AXFO
Axfood AB — Q1 2013 Earnings Presentation
21 slides from Axfood AB's earnings presentation, April 2013
Slide 1: Axfood January-March, 2013
Axfood January-March, 2013 Anders Strålman CEO 1
Slide 2: Axfood – good sales growth and stable result
Axfood – good sales growth and stable result Net sales • Net sales: SEK 8,950 m (8,718) +2.7% • Operating profit: SEK 254 m (250) +1.6% – Positive result for all business units • Operating margin: 2.8% (2.9) • Intense work with implementation of new business system • High level of private label shar
Slide 3: Willys – good sales growth
Willys – good sales growth • Net sales: SEK 4,919 m (4,701) +4,6% – Like-for-like sales: +2.8% • Operating profit: SEK 170 m (171) -0.6% – Operating margin: 3.5% (3.6) Net sales • Successful launch of customer programme • 3 stores were modernized and 4 new stores opened
Slide 4: Hemköp – stable development
Hemköp – stable development • Net sales: SEK 1,407 m (1,371) +2.6% • Operating profit: SEK 30 m (28) – Operating margin: 2.1% (2.0) • 2 stores were modernized Net sales
Slide 5: Axfood Närlivs – good result
Axfood Närlivs – good result • Net sales: SEK 1,427 m (1,441) -1.0% – Sales affected by less favorable weather • Operating profit: SEK 12 m (8) • Good development in cash-and-carry business • Signed agreement with Statoil to extend Operating profit and expand existing cooperation
Slide 6: Dagab – efficient logistics
Dagab – efficient logistics Delivery reliability • Stable development – Continued high delivery reliability – Intense work with implementation of new business system • Operating profit: SEK 29 m (34) – Increased costs according to plan due to implementation of new business system
Slide 7: New collective agreement
New collective agreement • New collective agreement between the Swedish Trade Federation and the Union of Commercial Employees – Runs for three years from 1 April 2013 – Total cost increase of 6.8% during the contract period
Slide 8: Market outlook
Market outlook • Week development in Swedish economy • Stable growth in food retail industry • Stable food price inflation – Should not exceed 2% for the full year
Slide 9: Strategy for profitable growth
Strategy for profitable growth • Develop the various concepts – Modernize both Willys and Hemköp stores – Attractive customer offerings • Development of customer programme • High level of private label share • Implementation of new business system continues
Slide 10: Axfood’s goal for 2013
Axfood’s goal for 2013 Achieve an operating profit at the same level as in 2012
Slide 11: Financial overview January-March, 2013
Financial overiew January-March, 2013 Karin Hygrell Jonsson CFO 11
Slide 12: Axfood January-March 2013
Axfood January-March 2013 • Good sales development and stable result Net sales, SEK m Operating margin, % Key ratios Q1 Q1 9 044 9 252 8 718 9 292 8 950 SEK m 2013 2012 Change Net sales 8,950 8,718 2.7% Change in like-for-like sales, 2.3% -2.4% 4.7 % 4.1 3.5 Operating profit 254 250 1.6% 2.9 2.8 2.8
Slide 13: Willys January-March 2013
Willys January-March 2013 • Good sales growth and stable result • Launched customer programme Net sales, SEK m Operating margin, % Key ratios Q1 Q1 4 919 SEK m 2013 2012 Change 4 961 4 818 4 927 4 701 Net sales 4,919 4,701 4.6% Change in like-for-like sales, 2.8% -0.3% 3.1 4.4 4.5 % 3.9 3.6 3.5 Oper
Slide 14: Hemköp January-March 2013
Hemköp January-March 2013 • Stable sales and result • Includes PrisXtra from 1 January 2013 Net sales, SEK m Operating margin, % Key ratios 1 474 Q1 Q1 1 401 1 407 SEK m 2013 2012 Change 1 371 1 338 Net sales 1,407 1,371 2.6% Change in like-for-like sales, 0.2% 1.9% -1.7 %, Group-owned 3.9 Operating
Slide 15: Axfood Närlivs January-March 2013
Axfood Närlivs January-March 2013 • Good result Net sales, SEK m Operating margin, % Key ratios Q1 Q1 SEK m 2013 2012 Change 1 673 1 652 Net sales 1 427 1 441 -1.0% 1 570 1 441 1 427 3.0 Distributed sales 1 334 1 326 0.6% Operating profit 12 8 50.0% 1.7 1.8 Operating margin, % 0.8% 0.6% 0.2 0.8 0.6
Slide 16: Dagab January-March 2013
Dagab January-March 2013 • Increased costs due to implementation of the new business system – Will continue to affect the result during 2013 Net sales, SEK m Operating margin, % Key ratios Q1 Q1 SEK m 2013 2012 Change 6 264 6 348 6 194 6 022 6 000 Net sales 6 194 6 022 2.9% Distributed sales 4 339 4
Slide 17: Other January-March 2013
Other January-March 2013 • Net sales: SEK 1,221m (1,079), +13.2% – Good sales development for fruits and vegetables as well as meat • Operating profit: SEK 13 m (9) – Amortization of new business system with SEK 15 m (10) 17
Slide 18: Key ratios January-March 2013
Key ratios January-March 2013 • Balance sheet, total: SEK 8,855 m (8,609) • Cash flow operating activity: SEK 510 m (416) • Capex: SEK 210 m (323) – Investment plan 2013: SEK 900-1,000 m Capital expenditure SEK m 1 000 800 600 400 200 0 -09 -10 -11 -12 18
Slide 19: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2013 is to achieve an operating profit at the same level as in 2012 • 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% 19
Slide 20: Summary
Summary • Stable sales and result • Positive result for all business units
Slide 21: Q&A
Q&A