Axfood Ab · OMXSTO:AXFO
Axfood Ab — FY2014 Earnings Presentation
23 slides from Axfood Ab's earnings presentation, February 2015
Slide 1: Axfood January-December 2014
Axfood January-December, 2014 Anders Strålman CEO 1
Slide 2: Axfood – strong earnings
Axfood – strong earnings • Strong earnings: SEK 1,447 m (1,302) +11.1% – Increased efficiency – Operating margin: 3.8% (3.5) • Stable sales growth: SEK 38,484 m (37,522) +2.6% Operating profit – Low food price inflation 2
Slide 3: Dagab – strong improvement of the result
Dagab – strong improvement of the result • Operating profit: SEK 208 m (114) – Increased efficiency – Last year was affected by implementation of the new business system • Good delivery reliability to the stores 3
Slide 4: Axfood Sverige – New supply chain organization
Axfood Sverige – New supply chain organization • One organization for all logistics within Axfood – Improve efficiency – Higher service – Better delivery punctuality • The entire product supply from purchasing and inventory to logistics gathered in Axfood Sverige 4
Slide 5: Hemköp – good growth in like-for-like sales
Hemköp – good growth in like-for-like sales • Operating profit: SEK 197 m (151), +30.5% – Best result ever – Operating margin: 3.6% (2.7) • Net sales: SEK 5,510 m (5,578), - 0.3% – Like-for-like sales: +2.3% (0.9) – Total sales affected by fewer stores • Modernization of stores, attractive Operating
Slide 6: Willys – once again a successful year
Willys – once again a successful year • Operating profit: SEK 870 m (808), +7.7% – Operating margin: 4.1% (4.0) • Stable sales growth: SEK 20 974 m (20,394) +2.8% – Like-for-like sales: +0.3% Operating profit • Focus on developing the customer programme and stronger offerings – 1,6 million connected
Slide 7: Axfood Närlivs – stable result
Axfood Närlivs – stable result • Sales development: SEK 6,597 m (6,489) +1.7% – Strong development in the cash-and-carry stores • Stable profit growth: SEK 139 m (140), -0.1% – Operating margin: 2.1% (2.2) Sales developement 7
Slide 8: Market outlook
Market outlook • Stable growth in food retail industry • Political uncertainty • Low food price inflation – 1-2% expected for 2015 8
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 modern supply chain organization • High level of private label share 9
Slide 10: Axfood’s goal 2015
Axfood’s goal 2015 Exceed the level of profit in 2014 10
Slide 11: Financial overview January-December, 2014
Financial overview January-December, 2014 Karin Hygrell-Jonsson CFO 11
Slide 12: Axfood January-December 2014
Axfood January-December 2014 • Strong result and stable sales growth Net sales, SEK m Operating margin, % Key ratios SEK m 2014 2013 Change 9,804 9,756 9,978 9,550 Net sales 38,484 37,522 2.6% 8,946 Change in like-for-like 0.7% 1.9% -1.2 sales, % 4.6 3.6 3.8 3.7 Operating profit 1,447 1,302 11.1% 2.
Slide 13: Willys January-December 2014
Willys January-December 2014 • Good earnings and stable sales Net sales, SEK m Operating margin, % Key ratios 5,374 5,243 5,416 5,209 4,941 SEK m 2014 2013 Change Net sales 20,974 20,394 2.8% Change in like-for-like 0.3% 2.2% -1.9 4,6 4,4 sales, % 4,0 4,1 3,4 Operating profit 870 808 7.7% Operating
Slide 14: Hemköp January-December 2014
Hemköp January-December 2014 • Continued good sales growth in like-for-like stores • Best result ever Net sales, SEK m Operating margin, % Key ratios 1,438 1,355 1,364 1,454 SEK m 2014 2013 Change 1,337 Net sales 5,510 5,578 - 1.2% Change in like-for-like 2.3% 0.9% 1.4 sales, %, Group-owned 4.5 3.4
Slide 15: Axfood Närlivs January-December 2014
Axfood Närlivs January-December 2014 • Stable development – Very good performance in cash-and-carry business Net sales, SEK m Operating margin, % Key ratios SEK m 2014 2013 Change 1,749 1,779 Net sales 6,597 6,489 1.7% 1,596 1,648 1,421 3.0 Distributed sales 6,183 6,049 2.2% 2.7 2.1 Operating profit
Slide 16: Dagab January-December 2014
Dagab January-December 2014 • Improved result due to better efficiency. • Last years result affected by implementation of new business system Net sales, SEK m Operating margin, % Key ratios 6,569 6,681 6,949 SEK m 2014 2013 Change 6,109 6,591 Net sales 26,330 25,509 3.2% 1.1 1.0 Distributed sales 18
Slide 17: Other January-December 2014
Other January-December 2014 • Net sales: SEK 5,225 m (5,120), +2.1% • Operating profit: SEK 33 m (89) – Impairment of intangible assets – Amortization of new business system with SEK 77 m (67) 17
Slide 18: New organization and segment reporting 2015
New organization and segment reporting 2015 • The entire product chain will be merged in the new segment Axfood Sverige • Dagab ceases to constitute its own segment • Total wholesale operation will be reported in Axfood Sverige • The segment ”Other” has been renamed ”Joint Group” 18
Slide 19: Key ratios January-December 2014
Key ratios January-December 2014 • Balance sheet, total: SEK 9,692 m (8,929) • Cash flow operating activity: SEK 2,029 m (1,596) • Capex: SEK 643 m (806) – Investment plan 2015: SEK 700-800 m Capital expenditure SEK m 1 000 800 600 400 200 0 -10 -11 -12 -13 -14 19
Slide 20: Dividend and stock split
Dividend and stock split • The Board of Directors proposes a dividend of: SEK 17 per share • The Board of Directors proposes a stock split with the terms 4:1
Slide 21: Financial targets
Financial targets • Axfood’s goal for 2015 is to exceed the level of profit in 2014 • 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% 21
Slide 22: Summary financial development
Summary financial development • Strong result and stable sales growth 22
Slide 23: Q&A
Q&A 23