Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q2 2013 Earnings Presentation
18 slides from Axfood Ab's earnings presentation, July 2013
Slide 1: Axfood April-June 2013
Axfood April-June, 2013 Anders Strålman CEO 1
Slide 2: Axfood April-June 2013
Axfood April-June 2013 Net sales • Net sales: SEK 9,557 m (9,292) +2.9% – Focus on store operations and strong customer offerings • Operating profit: SEK 326 m (322) +1.2% – Operating margin: 3.4% (3.5) – Stability and positive result for all business units • Intense work with implementation of new
Slide 3: Willys April-June 2013
Willys April-June 2013 • Good sales growth: SEK 5,174 m (4,961) +4,3% – Like-for-like sales: +1.6% – New successful loyalty program had a positive impact on sales • Operating profit: SEK 211 m (218) -3.2% Net sales – Operating margin: 4.1% (4.4) – More store openings compared to last year – Continue
Slide 4: Hemköp April-June 2013
Hemköp April-June 2013 • Net sales: SEK 1,392 m (1,401) -0.6% • Strengthened operating profit: SEK 44 m (27) – Operating margin: 3.2% (1.9) • Loyalty program upgraded to same modern platform as for Willys • 2 stores were modernized Operating margin
Slide 5: Axfood Närlivs April-June 2013
Axfood Närlivs April-June 2013 • Favourable sales: SEK 1,728 m (1,673) +3.3% – Better weather conditions compared to last year – Strong campaign offerings • Good operating profit: SEK 42 m (28) – Operating margin: 2.4% (1.7) • Extended delivery agreement with OKQ8 Operating profit – Delivery of news
Slide 6: Dagab April-June 2013
Dagab April-June 2013 • Intense work with implementation of new business system – Successful implementation in one of Dagabs´ largest warehouses – Increased costs according to plan has affected the result • Operating profit: SEK 12 m (42)
Slide 7: Market outlook
Market outlook • Week development in Swedish economy • Stable growth in food retail industry • 1-2 percent food price inflation expected for the full year
Slide 8: Strategy for profitable growth
Strategy for profitable growth • Develop the various concepts – Modernize both Willys and Hemköp stores – Attractive customer offerings • Development of customer program • High level of private label share • Continued implementation of new business system
Slide 9: Axfood's goal for 2013
Axfood’s goal for 2013 Achieve an operating profit at the same level as in 2012
Slide 10: Financial overview April-June, 2013
Financial overview April-June, 2013 Karin Hygrell Jonsson CFO 10
Slide 11: Axfood April-June 2013: Strong result and good sales growth
Axfood April-June 2013 • Strong result and good sales growth Net sales, SEK m Operating margin, % Key ratios Q2 Q2 SEK m 2013 2012 Change 9 557 9 292 9 044 9 252 8 950 Net sales 9,557 9,292 2.9% Change in like-for-like sales, 1.3% 0.5% 0.8 % 4.1 3.5 3.4 Operating profit 326 322 1.2% 2.8 2.8 Operatin
Slide 12: Willys April-June 2013
Willys April-June 2013 • Good sales growth and stable profitability • Successful customer program Net sales, SEK m Operating margin, % Key ratios Q2 Q2 5 174 SEK m 2013 2012 Change 4 961 4 818 4 927 4 919 Net sales 5,174 4,961 4.3% Change in like-for-like sales, 1.6% 0.2% 1.4 4.4 4.5 % 3.9 4.1 3.5 O
Slide 13: Hemköp April-June 2013
Hemköp April-June 2013 • Improved profitability and stable sales Net sales, SEK m Operating margin, % Key ratios 1 474 Q2 Q2 1 401 1 407 1 392 SEK m 2013 2012 Change 1 338 Net sales 1,392 1,401 -0.6% Change in like-for-like sales, 0.2% 1.3% -1.1 %, Group-owned 3.9 Operating profit 44 27 63.0% 3.2 2.
Slide 14: Axfood Närlivs April-June 2013
Axfood Närlivs April-June 2013 • Good result and sales growth Net sales, SEK m Operating margin, % Key ratios Q2 Q2 SEK m 2013 2012 Change 1 673 1 728 Net sales 1,728 1,673 3.3% 1 652 1 570 1 427 3.0 Distributed sales 1,609 1,531 5.1% 2.4 Operating profit 42 28 50.0% 1.7 1.8 Operating margin, % 2.4%
Slide 15: Dagab April-June 2013
Dagab April-June 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 Q2 Q2 SEK m 2013 2012 Change 6 264 6 348 6 194 6 400 6 000 Net sales 6,400 6,264 2.2% Distributed sales 4,418 4,31
Slide 16: Other April-June 2013
Other April-June 2013 • Net sales: SEK 1,329 m (1,162), +14.4% – Good sales development for fruits & vegetables and meat • Operating profit: SEK 17 m (7) – Amortization of new business system with SEK 17 m (14) 16
Slide 17: Key ratios January-June 2013
Key ratios January-June 2013 • Balance sheet, total: SEK 8,831 m (8,650) • Cash flow operating activity: SEK 828 m (970) – Previous year was affected by lower tax payments • Capex: SEK 398 m (537) Capital expenditure – Investment plan 2013: SEK 900-1,000 m SEK m 1 000 800 600 400 200 0 -09 -10 -11 -
Slide 18: 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% 18