Axfood AB · OMXSTO:AXFO
Axfood AB — FY2022 Earnings Presentation
37 slides from Axfood AB's earnings presentation, February 2023
Slide 1: An intense year of strong growth
An intense year of strong growth Year-end report 2022
Slide 2: Agenda
Year-end report 2022 2 Agenda –Market update –Q4 and full year 2022 –Financial position –Strategic agenda and outlook –Q&A
Slide 3: Market update
Year-end report 2022 3 Market update
Slide 4: Food retail market: producer prices still higher than consumer prices
Year-end report 2022 4 Food retail market Producer prices still higher than consumer prices, gap narrowing Food price inflation y-o-y by quarter Consumer food price inflation (CPI) % Producer food price inflation (PPI) 26 24 22 20.8 20.0 20 18.2 18 16.9 16 14.5 14 12 10 9.3 8.9 8 6 4.6 3.8 3.9 4 3.3
Slide 5: Food retail market: similar growth rate despite higher inflation
Year-end report 2022 5 Food retail market Similar growth rate on sequential basis despite higher food price inflation Food retail trade index, y-o-y sales growth in stores and online by quarter Food retail trade index, y-o-y sales growth in stores (calendar adjusted) % % 15 15 14 10 8.6 8.9 8.4 7.6
Slide 6: Q4 2022
Year-end report 2022 6 Q4 2022
Slide 7: Accelerated market outperformance in the quarter
Year-end report 2022 7 Accelerated market outperformance in the quarter Retail sales development, total including online Retail sales development, online Axfood retail sales Axfood online sales % Food retail trade index 17.9% % Food retail trade index online 18 160 17 150 16 140 15 130 14 120 13 110
Slide 8: Group net sales
Year-end report 2022 8 Group net sales +15.7% Growth driven by inflation and Net sales, SEK m 19,740 post-pandemic normalisation 17,062 13,040 13,633 12,370 –Net sales increased by 15.7% –High food price inflation –Higher customer traffic in physical stores Q4 Q4 Q4 Q4 Q4 –E-commerce sales increased
Slide 9: Group operating profit
Year-end report 2022 9 Group operating profit Adj. operating margin, %* +12.3% Higher profit driven by strong Adj. operating profit, SEK m* 734 sales growth, stable margin 566 653 487 425 4.1 3.8 3.7 –Operating profit SEK 502 m (739), adjusted operating profit* SEK 734 m (653) 3.4 3.7 + Strong sales
Slide 10: Willys: Accelerated market outperformance
Year-end report 2022 10 Willys Accelerated market outperformance Willys (incl. Eurocash) retail sales vs. food retail trade index, y-o-y sales growth Willys (excl. Eurocash) penetration among Swedish households** Willys (incl. Eurocash) % Food retail trade index* % 25 60 23.2 59% 20.0 20 55 15.5 15
Slide 11: Willys: Accelerated and exceptional double-digit sales growth
Year-end report 2022 11 Willys Accelerated and exceptional double-digit sales growth Operating margin, % +23.2% Net sales, SEK m 10,380 –Net sales increased by 23.2% and LFL 20.4% 8,424 8,123 –Exceptionally strong growth rate for Willys at three times 7,488 higher than the market 7,033 –Higher sales
Slide 12: Hemköp: Continued solid development in traditional grocery segment
Year-end report 2022 12 Hemköp Continued solid development in traditional grocery segment Operating margin, % Net sales, SEK m +9.6% 1,792 1,667 1,652 1,656 –Net sales increased by 9.6%, LFL 10.1% for group- 1,635 owned Hemköp stores –Retail sales increased 7.9% which was slightly higher than 4.5 th
Slide 13: Snabbgross: Strong sales and higher profit
Year-end report 2022 13 Snabbgross Strong sales and higher profit Operating margin, % +18.7% Net sales, SEK m 1 170 –Net sales increased by 18.7% and LFL 15.9% 986 –Strong growth despite high comps driven by post-pandemic 795 845 791 normalisation, food price inflation and successful new establishme
Slide 14: Dagab: Significant growth and high activity level
Year-end report 2022 14 Dagab Significant growth and high activity level, however headwind from increased costs Adj. operating margin, %* Net sales, SEK m +15.9% 18,220 –Net sales increased by 15.9% 15,716 –Growth mainly driven by increased sales to food retail 12,310 11,657 –Operating profit SEK 63
Slide 15: Financial position
Year-end report 2022 15 Financial position
Slide 16: Strong full year sales and operating profit growth
Year-end report 2022 16 Strong full year sales and operating profit growth 26.9% Adj. operating margin, %* Net sales, SEK m Adj. operating profit, SEK m* +26.9% 73,474 +20.1% Net sales growth 2022 3,229 20.1% 57,891 53,696 48,085 50,740 2,690 2,510 2,288 2,025 4.5 4.7 4.6 4.4 4.2 Adjusted operating
Slide 17: Strong operating cash flow
Year-end report 2022 17 Strong operating cash flow SEK m 2022 2021 Operating profit 3,101 2,704 Non-cash items 2,490 2,461 Net interests -155 -120 Paid tax -568 -406 SEK 5.9 bn Working capital 1,058 -49 Operating cash flow 5,926 4,590 Investing activities -2,778 -3,842 Loans raised 663 1,900 Rights
Slide 18: Continued investments for the future
Year-end report 2022 18 Continued investments for the future Other Wholesale SEK m Acquisition Retail Joint group 3,547 2,593 SEK 2.6 bn Guidance 1,934 1,800-1,900 1,481 1,021 1,031 764 580 Investments 2022 0 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 19: Net working capital
Year-end report 2022 19 Net working capital NWC as % of sales NWC, SEK m 2017 2018 2019 2020 2021 2022 -2.0% -2.6% -3.0% -3.4% -3.5% -919 -3.9% -3.5% -1,236 -1,513 -1,800 -2,260 NWC as % of sales -2,581
Slide 20: Financial position
Year-end report 2022 20 Financial position Net debt (ex. IFRS 16), SEK m Net debt, SEK m Net debt/EBITDA 7,640 8,225 7,005 6,868 8,982 1.6x Net debt/EBITDA 5,454 5,481 1.6 5,218 5,185 5,016 1.5 1.5 4,920 4,577 24.1% 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.0 1.0 1,648 1,236 515 536 Equity ratio -259 -350 -68 -
Slide 21: Return on capital employed
Year-end report 2022 21 Return on capital employed ROCE Capital employed, SEK m 16,442 13,550 13,628 13,588 12,865 12,360 10,674 10,326 10,149 9,651 9,648 20.9% 9,526 26.6% 26.5% 26.4% 24.7% 24.5% 24.5% 25.6% 25.8% 24.2% 22.6% 22.4% 20.9% Return on capital employed 31 Mar. 30 Jun. 30 Sep. 31 Dec. 31
Slide 22: Strategic agenda and outlook
Year-end report 2022 22 Strategic agenda and outlook
Slide 23: Strategic focus areas and priorities 2023
Year-end report 2022 23 Strategic focus areas and priorities 2023 Customer Customer Expansion Supply chain Work approach Our people offering meeting Axfood will grow in new Axfood will develop a Axfood is to be a customer- Axfood aspires to be the and existing areas by sustainable product supply ori
Slide 24: Continued expansion, modernisations and digitalisation
Year-end report 2022 24 Continued expansion, modernisations and digitalisation High pace in modernising stores, continued expansion with new store establishments, and digitalisation of the customer meeting. Accelerated expansion in terms Continued initiatives to strengthen of new store establishment
Slide 25: Transition to new logistics centre initiated
Year-end report 2022 25 Transition to new logistics centre initiated, efficiencies expected earlier than planned The establishment of the new, highly automated logistics centre in Bålsta reached a new milestone during the fourth quarter, when the first deliveries from suppliers were received. Next m
Slide 26: New fruit and vegetables warehouse in operation
Year-end report 2022 26 New fruit and vegetables warehouse in operation The new fruit and vegetable warehouse in Landskrona went into operation in December. The new warehouse will be semi-automated and replaces the existing warehouse in Helsingborg.
Slide 27: Completed integration Bergendahls Food and City Gross' stores
Year-end report 2022 27 Completed integration Bergendahls Food and City Gross’ stores, synergies expected earlier than planned After the wholesale conversion last spring, the integration of the acquired company Bergendahls Food was completed during the fourth quarter in connection with the conversio
Slide 28: Outlook 2023
Year-end report 2022 28 Outlook 2023 SEK m Investments* –Planned capital expenditures of SEK 1,800−1,900 m 4,000 3,547 –Excluding acquisitions and leasehold 3,000 2,593 Guidance 1,800-1,900 –Including SEK 400 m for the new logistics centre in Bålsta, 2,000 1,481 1,021 1,031 in accordance with invest
Slide 29: An increased dividend
Year-end report 2022 29 An increased dividend Ordinary dividend per share (LHS, SEK) –The dividend policy sets the goal that the Dividend payout ratio (RHS, %) shareholder dividend shall be at least 50 percent SEK CAGR +9% % of profit after tax. 10 100 –The dividend amount is to be paid on two occas
Slide 30: Summary
Year-end report 2022 30 Summary –Accelerated retail sales growth and increased market share in exceptional time –Completed integration of Bergendahls Food, as well as City Gross to Axfood’s systems and processes –Continued steps towards optimised and automated logistics platform, transition to new l
Slide 31: Q&A
Year-end report 2022 31 Q&A
Slide 32: Axfood at a glance: full year 2022 net sales and employees
Year-end report 2022 32 Full year 2022 net sales, SEK Employees (FTEs) 73.5bn 12,772 Efficient sourcing and logistics Customer reach for all brands and channels • ~4.5 million customers a week Innovative development of • 325 Group-owned stores private label products • 137 franchise Hemköp • 131 fran
Slide 33: Axfood key ratios
Year-end report 2022 33 Axfood Q4 Q4 Key ratios SEK m 2022 2021 Chg 2022 2021 Chg Net sales 19,740 17,062 15.7% 73,474 57,891 26.9% Operating margin, % Change in like- 17.9% 1.4% 16.5 10.4% 0.3% 10.1 for-like sales* Net sales, SEK m 73,474 Operating profit 502 739 -32.1% 3,101 2,704 14.7% Adjusted o
Slide 34: Willys
Year-end report 2022 34 Willys Operating margin, % Q4 Q4 Net sales, SEK m Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 37,451 Net sales 10,380 8,424 23.2% 37,451 32,424 15.5% 31,793 32,424 29,029 27,066 Change in like- 20.4% 1.5% 18.9 13.5% 0.0% 13.5 for-like sales 4.9 4.9 5.0 4.7 Operating profit 4
Slide 35: Hemköp
Year-end report 2022 35 Hemköp Q4 Q4 Operating margin, % Key ratios SEK m 2022 2021 Chg 2022 2021 Chg Net sales, SEK m Net sales 1,792 1,635 9.6% 6,650 6,202 7.2% 6,650 6,403 6,378 6,354 6,202 Change in like- 6.6% 0.8% 5.8 4.5% 1.1% 3.4 for-like sales* 4.4 4.3 Operating profit 76 73 3.6% 283 271 4.6
Slide 36: Snabbgross
Year-end report 2022 36 Snabbgross Operating margin, % Q4 Q4 Net sales, SEK m Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 4,727 Net sales 1,170 986 18.7% 4,727 3,825 23.6% 3,825 3,443 3,417 Change in like-for- 3,241 15.9% 21.6% -5.7 20.1% 9.3% 10.8 like sales 5.3 4.8 5.0 Operating profit 51 45 14.6
Slide 37: Dagab
Year-end report 2022 37 Dagab Q4 Q4 Operating margin, % Key ratios SEK m 2022 2021 Chg 2022 2021 Chg Net sales, SEK m Net sales 18,220 15,716 15.9% 66,999 52,295 28.1% 66,999 Operating profit 63 250 -74.9% 978 932 4.9% 52,295 48,091 Adjusted operating 294 277 6.4% 1,139 976 16.7% 44,895 profit 42,45