Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q1 2024 Earnings Presentation
30 slides from Axfood Ab's earnings presentation, 2024
Slide 1: Continued high inflow of customers and solid earnings
Continued high inflow of customers and solid earnings Interim report Q1 2024
Slide 2: Agenda
Interim report Q1 2024 2 Agenda –Q1 2024 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q1 and market update
Interim report Q1 2024 3 Q1 and market update
Slide 4: Market development and inflation
Interim report Q1 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 +0.4pp 10 9.2 8.7 25 8.2 7.6 6.2 6.0 6.4 5.4 20.1 5 20 2.8 17.8 1.3 0.5 0.1 0 1
Slide 5: Significant market outperformance by Axfood over two years
Interim report Q1 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 28
Slide 6: Consistent market outperformance by Axfood online
Interim report Q1 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 30 130 25 120 20 110 15 8.9% 100 10 5 9
Slide 7: Group net sales
Interim report Q1 2024 7 Group net sales Growth driven by higher volumes from strong customer traffic Net sales, SEK m +5.2% –Net sales increased by 5.2% 19,252 20,252 16,593 –Increased volumes and high inflow of customers 13,067 13,203 –Strong growth for Willys and Hemköp, however softer sales perf
Slide 8: Group operating profit
Interim report Q1 2024 8 Group operating profit Higher profit driven by sales growth and effective cost control Adj. operating margin, %* +9.0% Adj. operating profit, SEK m* –Operating profit SEK 817 m (695), adjusted 750 817 653 operating profit* SEK 817 m (750) 544 565 3.9 3.9 4.0 –Higher profit d
Slide 9: Willys
Interim report Q1 2024 9 Willys Strong growth despite exceptionally high comps –Net sales increased by 7.5% and LFL 5.6% –Strong performance by Willys chain with growth coming Operating margin, % from higher volumes +7.5% –Growth somewhat higher than the market despite Net sales, SEK m exceptionally
Slide 10: Willys increasing loyalty and customer base
Interim report Q1 2024 10 Willys increasing loyalty and customer base Strong reach, 60% of households have recently shopped at Willys Penetration as measured by household purchases in the last available three months of each period. Willys Main competitor 60% 47% 46% Strengthening loyalty Increasing
Slide 11: Hemköp
Interim report Q1 2024 11 Hemköp Continued momentum and strong like-for-like sales growth –Net sales increased by 7.6% –Retail sales LFL growth of 7.0%, total growth of 5.8% Operating margin, % –Better development for Hemköp than for Tempo Net sales, SEK m +7.6% –Total store network 321 (326)* 1,956
Slide 12: Investments in the Hemköp concept paying off
Interim report Q1 2024 12 Investments in the Hemköp concept paying off Number of modernised stores in the last two years >60 Increased pace in modernising stores Improved value proposition Strong commitment to sustainability and realising operational efficiencies Hemköp’s value proposition has over
Slide 13: Snabbgross
Interim report Q1 2024 13 Snabbgross Higher market share in challenging market –Net sales increased by 2.8% and LFL 1.5% –Weak market development impacted B2B sales to Operating margin, % restaurants and cafés, negative calendar effect –Solid performance relative to competition, increased Net sales,
Slide 14: Dagab
Interim report Q1 2024 14 Dagab Sales and profit growth, continued transition to new logistics platform –Net sales increased by 4.3% –Growth driven by higher sales to Group-owned stores +4.3% Adj. operating margin, %* –Softer sales development to external customers Net sales, SEK m 17,753 18,518 –Op
Slide 15: Financial position
Interim report Q1 2024 15 Financial position
Slide 16: Cash generation analysis
Interim report Q1 2024 16 Cash generation analysis –Higher cash flow from operating activities, Cash flow from primarily due to changes in working capital –Working capital positively impacted by lower degree operating activities, SEK m of parallel warehouse operations and accounts payables as well a
Slide 17: Financial position and investments
Interim report Q1 2024 17 Financial position and investments 10,889 10,226 10,247 9,750 24.3% 24.1% 3,547 9,339 23.9% 21.8% 2,593 Guidance 1,946 1,600 19.4% -1,700 1.9 1.8 1.7 17.7% 18.4% 17.6% 18.1% 1.5 1.5 1,031 6.1% 3.5% 1.9% 1.4% 1.2% 2.4% 2.9% 551 354 1.7% 0.4 0.3 0.3 0.0 0.0 1.5% 1.3% 1.2% 1.4
Slide 18: Capital efficiency
Interim report Q1 2024 18 Capital efficiency 16,442 17,212 16,509 -3.4% -3.2% -3.4% -3.9% -3.5% 13,550 Net working capital as percentage 10,674 of Group net sales -1,800 -2,260 24.2% 22.4% 20.9% 20.3% 21.5% -3.4% -2,581 -2,620 -2,804 2020 2021 2022 2023 R12M to 2020 2021 2022 2023 R12M to Mar. 2024
Slide 19: Strategic agenda, outlook and summary
Interim report Q1 2024 19 Strategic agenda, outlook and summary
Slide 20: Continued progress in transition to new logistics platform
Interim report Q1 2024 20 Continued progress in transition to new logistics platform Logistics centre in Bålsta outside Stockholm Fruit and vegetables warehouse in Landskrona Deployment of automation and transfer of inventory for dry and Successful deployment of automation solution in the quarter, r
Slide 21: Reducing the climate impact from transports
Interim report Q1 2024 21 Reducing the climate impact from transports Share of fossil free fuels used in own transports Change in emissions from own transports versus last year (CO2e kg/tonne of goods) 86% 51% Q1 Q2 Q3 Q4 Q1 2022 Q2 Q3 Q4 Q1 2023 2024 -29% Accelerating the green transition More use
Slide 22: Unchanged outlook 2024
Interim report Q1 2024 22 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 23: Summary
Interim report Q1 2024 23 Summary Strong growth Increased volumes from Progress with new logistics Strong financial despite significantly continued high inflow platform and transition to position and solid lower inflation of customers fossil free fuels in transports strategic agenda
Slide 24: Interim report Q1 2024 Q&A
Interim report @12024 24 Axfood
Slide 25: Axfood at a glance
Interim report Q1 2024 25 R12M net sales to Q1 2024, SEK Employees (FTEs) 82.1bn 12,803 Efficient sourcing and logistics Customer reach for all brands and channels ~5 million customers a week Innovative development 336 Group-owned stores of private label products 133 franchise Hemköp 123 franchise T
Slide 26: Axfood
Interim report Q1 2024 26 Axfood Q1 Q1 Key ratios SEK m 2024 2023 Chg 2023 Net sales 20,252 19,252 5.2% 81,111 Operating margin, % Change in like- 6.0% 17.5% -11.5 12.0% for-like sales* Net sales, SEK m 81,111 82,110 Operating profit 817 695 17.6% 3,353 73,474 Adjusted operating 817 750 9.0% 3,602 p
Slide 27: Willys
Interim report Q1 2024 27 Willys Q1 Q1 Operating margin, % Key ratios SEK m 2024 2023 Chg 2023 Net sales, SEK m 44,538 43,757 Net sales 11,245 10,465 7.5% 43,757 37,451 Change in like- 5.6% 21.5% -15.9 13.9% 31,793 32,424 for-like sales Operating profit 484 454 6.6% 2,077 4.9 5.0 4.7 4.7 4.7 Operati
Slide 28: Hemköp
Interim report Q1 2024 28 Hemköp Q1 Q1 Operating margin, % Key ratios SEK m 2024 2023 Chg 2023 Net sales, SEK m Net sales 1,956 1,818 7.6% 7,432 7,432 7,570 6,650 Change in like- 6,354 6,202 for-like sales* 7.0% 9.4% -2.4 7.9% 4.4 4.3 4.4 Operating profit 101 71 41.5% 300 4.0 3.6 Operating margin 5.
Slide 29: Snabbgross
Interim report Q1 2024 29 Snabbgross Operating margin, % Q1 Q1 Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2023 5,317 5,348 Net sales 1,178 1,147 2.8% 5,317 4,727 Change in like-for- 1.5% 19.2% -17.7 10.4% 3,825 like sales 3,417 5.3 5.0 5.0 4.9 Operating profit 27 30 -10.6% 265 4.4 Operating mar
Slide 30: Dagab
Interim report Q1 2024 30 Dagab Operating margin, % Q1 Q1 Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2023 74,175 74,940 66,999 Net sales 18,518 17,753 4.3% 74,175 52,295 Operating profit 268 207 30.0% 1,021 48,091 1.8 Adjusted operating 1.7 268 261 2.8% 1,271 profit 1.5 1.4 1.4 Operating margin