Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q3 2014 Earnings Presentation
19 slides from Axfood Ab's earnings presentation, October 2014
Slide 1: Axfood July - September, 2014
Axfood July - September, 2014 Anders Strålman CEO 1
Slide 2: Axfood – strong earnings
Axfood – strong earnings • Strong earnings – SEK 453 m (382), +18.6% – Increased efficiency – Fewer store establishments compared to last year • Good sales growth – SEK 9,756 m (9,465), +3.1% • Low food price inflation 2
Slide 3: Willys – good profitability
Willys – good profitability • Good earnings – SEK 243 m (219), +11.0% • Stable sales – SEK 5,243 m (5,092), +3.0% • Focus on developing the customer programme and stronger offerings – 1.5 million connected customers 3
Slide 4: Hemköp – favorable growth in like-for-like stores
Hemköp – favorable growth in like-for-like stores • Total sales affected by fewer stores – SEK 1,337 m (1,341), -0.3% • Continued good growth in like-for-like stores – +2.5 % (2.3) • Increased earnings – SEK 60 m (42), +42.9% • Modernization of stores, attractive customer offerings and improved stor
Slide 5: Axfood Närlivs – improved result
Axfood Närlivs – improved result • Stable development – Operating profit: SEK 54 m (52), +3.8% – Net sales: SEK 1,779 (1,738), +2.4% – Increased costs due to implementation of new business system • Very good development in cash-and-carry stores – Sales to both new and existing customers increased 5
Slide 6: Dagab – strengthened profitability
Dagab – strengthened profitability • Strong improvement of the result – SEK 65 m (32) – Increased efficiency – Last year was affected by implementation of the new business system • Focus on fine-tuning and developing the system 6
Slide 7: Market outlook
Market outlook • Continued optimism among Swedish households • Stable growth in food retail industry • Low food price inflation – Around 1% expected for 2014 7
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 programmes and business system • High level of private label share 8
Slide 9: Axfood's estimation is that profit for 2014 will exceed 2013
Axfood’s estimation is that… profit for 2014 will exceed the level achieved in 2013 9
Slide 10: Financial Overview
Financial Overview Karin Hygrell-Jonsson CFO 10
Slide 11: Axfood July-September 2014
Axfood July-September 2014 • Strong result and stable sales growth Net sales, SEK m Operating margin, % Key ratios Q3 Q3 SEK m 2014 2013 Change Net sales 9,756 9,465 3.1% 9 465 9 550 9 804 9 756 8 946 Change in like-for-like sales, 0.9% 2.3% -1.4 % 4.6 Operating profit 453 382 18.6% 4.0 3.6 3.8 2.7
Slide 12: Willys July-September 2014
Willys July-September 2014 • Good earnings and stable sales Net sales, SEK m Operating margin, % Key ratios Q3 Q3 5 209 5 374 5 243 SEK m 2014 2013 Change 5 092 4 941 Net sales 5,243 5,092 3.0% Change in like-for-like sales, 0.6% 2.2% -1.6 % 4.3 4.6 4.0 4.1 3.4 Operating profit 243 219 11.0% Operati
Slide 13: Hemköp July-September 2014
Hemköp July-September 2014 • Continued good sales growth in like-for-like stores • Improved result Net sales, SEK m Operating margin, % Key ratios Q3 Q3 1 438 SEK m 2014 2013 Change 1 341 1 355 1 364 1 337 Net sales 1,337 1,341 -0.3% Change in like-for-like sales, 2.5% 2.3% 0.2 %, Group-owned 4.5 Op
Slide 14: Axfood Närlivs July-September 2014
Axfood Närlivs July-September 2014 • Stable development – Very good performance in cash-and-carry business Net sales, SEK m Operating margin, % Key ratios Q3 Q3 SEK m 2014 2013 Change 1 738 1 749 1 779 Net sales 1,779 1,738 2.4% 1 596 1 421 3.0 3.0 Distributed sales 1,666 1,614 3.2% 2.7 2.1 Operatin
Slide 15: Dagab July-September 2014
Dagab July-September 2014 • Strengthened result – Last years result affected by implementation of new business system Net sales, SEK m Operating margin, % Key ratios Q3 Q3 6 569 6 681 6 591 SEK m 2014 2013 Change 6 346 6 109 Net sales 6,591 6,346 3.9% 1.0 Distributed sales 4,530 4,421 2.5% 0.7 0.5 0
Slide 16: Other July-September 2014
Other July-September 2014 • Net sales: SEK 1,301 m (1,284), +1.3% • Operating profit: SEK 31 m (37) – Amortization of new business system with SEK 20 m (17) 16
Slide 17: Key ratios January-September 2014
Key ratios January-September 2014 • Balance sheet, total: SEK 9,039 m (8,460) • Cash flow operating activity: SEK 1,288 m (1,112) • Capex: SEK 474 m (551) – Investment plan 2014: Around SEK 700 m Capital expenditure SEK m 1 000 800 600 400 200 0 -09 -10 -11 -12 -13 17
Slide 18: Financial targets & dividend policy
Financial targets & dividend policy • Axfood’s estimation is that profit for 2014 will exceed the level achieved in 2013 • 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
Slide 19: Summary
Summary • Strong result and stable sales growth 19