Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q4 2023 Earnings Presentation
33 slides from Axfood Ab's earnings presentation, February 2024
Slide 1: Continued market share gains in an exceptional time
Continued market share gains in an exceptional time Year-end report 2023
Slide 2: Agenda
Year-end report 2023 2 Agenda –Q4 2023 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q4 and market update
Year-end report 2023 3 Q4 and market update
Slide 4: Market development and inflation
Year-end report 2023 4 Market development and inflation Total market (Food Retail Trade Index), y-o-y sales growth* Food price inflation y-o-y by month** % % 26 26 24 24 22 22 20.1 20 20 17.8 18 18 16 16 14.5 14.5 14 14 12 -3.1pp 12 10 8.9 9.1 10 9.1 9.2 -0.2pp 8.7 8 8.1 8.2 8 7.5 7.6 6.0 6.2 6 5.8
Slide 5: Consistent market outperformance by Axfood
Year-end report 2023 5 Consistent market outperformance by Axfood 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 28.2% 25 25 20 20 15
Slide 6: Consistent market outperformance by Axfood also online
Year-end report 2023 6 Consistent market outperformance by Axfood also 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 30 140 25 130 20 120 15 8.3% 110 10
Slide 7: 10 years of market share gains
Year-end report 2023 7 10 years of market share gains Retail sales y-o-y growth, total including e-commerce % Axfood retail sales Food retail trade index 30 25 20 15 10 5 0 H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ H1’ H2’ 14 14 15 15 16 16 17 17 18 18 19 19 20 20 21 21
Slide 8: Group net sales
Year-end report 2023 8 Group net sales Continued market share Net sales, SEK m +5.2% gains in exceptional time 17,062 19,740 20,769 13,040 13,633 –Net sales increased by 5.2% –Continued inflow of new customers –Strong growth for Axfood’s concepts, however soft sales performance to Dagab’s external c
Slide 9: Group operating profit
Year-end report 2023 9 Group operating profit Adj. operating margin, %* Higher profit driven by Adj. operating profit, SEK m* +11.0% strong sales growth 734 815 653 566 487 3.8 3.7 3.9 –Operating profit SEK 744 m (502), adjusted 4.1 operating profit* SEK 815 m (734) 3.7 –Higher profit driven by stro
Slide 10: Willys
Year-end report 2023 10 Willys Strong positioning yields continued market share gains Operating margin, % +9.1% Net sales, SEK m 11,325 10,380 –Net sales increased by 9.1% and LFL 7.0% –Strong performance by Willys chain with continued inflow 8,123 8,424 of new customers 7,488 –Growth higher than th
Slide 11: Hemköp
Year-end report 2023 11 Hemköp Continued momentum with growth higher than the market Operating margin, % Net sales, SEK m +10.3% 1,976 –Net sales increased by 10.3% 1,652 1,656 1,792 1,635 –Retail sales growth of 8.0% higher than the market, LFL 7.4% –More favourable development for Hemköp than for
Slide 12: Snabbgross
Year-end report 2023 12 Snabbgross Solid performance despite weaker market trends Operating margin, % Net sales, SEK m +6.4% 1,244 1,170 –Net sales increased by 6.4% and LFL 4.8% –Strong growth which was higher than the market 986 –Growth driven by an increased number of customers 845 791 and sales
Slide 13: Dagab
Year-end report 2023 13 Dagab Higher profit from sales growth, synergies and currency Adj. operating margin, %* +4.3% Net sales, SEK m 19,007 18,220 –Net sales increased by 4.3% 15,716 –Growth driven by strong performance for Axfood’s concepts –Soft sales development to external customers 12,310 11,
Slide 14: Financial position
Year-end report 2023 14 Financial position
Slide 15: Strong full year sales and operating profit growth
Year-end report 2023 15 Strong full year sales and operating profit growth Net sales, SEK m Adj. operating profit, SEK m* Adj. operating margin, %* +10.4% +11.5% 81,111 3,602 0.0 73,474 3,229 4.4% 4.4% 2022 2023 2022 2023 2022 2023 *Excluding items affecting comparability.
Slide 16: Cash generation analysis
Year-end report 2023 16 Cash generation analysis –Higher cash flow from operating activities, Cash flow from primarily due to higher operating profit operating activities –Lower cash flow from investment activities –Prior year period included high automation investments 2,219 in the new logistics ce
Slide 17: Financial position and investments
Year-end report 2023 17 Financial position and investments 10,889 3,547 10,226 10,247 24.3% 8,982 9,339 24.6% 21.8% 24.1% 23.9% 2,593 1.9 1,946 1.6 1.8 1.7 1.5 1,481 1,031 6.1% 2.9% 3.5% 1.9% 2.4% 0.4 0.3 0.3 0.0 0.0 1.5% 1.5% 1.4% 1.2% 1.3% Q4 Q1 Q2 Q3 Q4 2019 2020 2021 2022 2023 2019 2020 2021 202
Slide 18: Capital efficiency
Year-end report 2023 18 Capital efficiency 16,442 17,212 -3.0% -3.2% -3.4% -3.5% 13,550 -3.9% 10,178 10,674 -1,513 -1,800 -2,260 30.1% NWC % of net sales -3.2% 24.2% 22.4% 20.9% 20.3% -2,581 -2,620 2019 2020 2021 2022 2023 2019 2020 2021 2022 2023 Net working capital, SEK m Capital employed, SEK m N
Slide 19: Strategic agenda, outlook and summary
Year-end report 2023 19 Strategic agenda, outlook and summary
Slide 20: An eventful year with continued progress
Year-end report 2023 20 An eventful year with continued progress Sales growth double the rate of the Growth and market and increased presence with expansion new store establishments Accelerating efforts in digitalisation Digitalisation and automation to increase efficiency and automation and enhance
Slide 21: Strong growth and high pace of expansion
Year-end report 2023 21 Strong growth and high pace of expansion Exceptionally strong sales growth Record pace in new establishments with large inflow of new customers with 12 new Group-owned stores
Slide 22: Accelerating digitalisation and automation
Year-end report 2023 22 Accelerating digitalisation and automation Upgrading IT platforms New system to Highly automated logistics centre Automation installed and accelerating data plan campaigns in Bålsta taken into operations in Landskrona fruit and driven work approach and assortment with gradual
Slide 23: Taking the lead in promoting a sustainable food system
Year-end report 2023 23 Taking the lead in promoting a sustainable food system Large solar panel facilities on rooftops of Bålsta logistics Decision taken to over a two-year period transition own centre and Landskrona fruit and vegetables warehouse delivery fleet and external transports to fossil fr
Slide 24: Outlook 2024
Year-end report 2023 24 Outlook 2024 SEK m Investments* –Planned capital expenditures of SEK 1,600−1,700 m 4,000 3,547 –Excluding acquisitions and leasehold 3,000 2,593 Guidance 1,946 1,600-1,700 –Including SEK 300 m for automation in the new logistics 2,000 1,481 1,031 centre in Bålsta outside Stoc
Slide 25: An increased dividend
Year-end report 2023 25 An increased dividend Ordinary dividend per share (LHS, SEK) –The dividend policy sets the goal that Dividend payout ratio (RHS, %) the shareholder dividend shall be at least SEK CAGR +9% % 50 percent of profit after tax 100 –The dividend amount is to be paid on two occasions
Slide 26: Summary
Year-end report 2023 26 Summary –Strong growth despite significantly lower inflation –Increased market share and continued high inflow of new customers –Progress with transformation to new logistics platform, and large-scale sustainability initiatives –Strong financial position and solid strategic a
Slide 27: Q&A
Year-end report 2023 27 Q&A
Slide 28: Axfood at a glance
Year-end report 2023 28 Full year 2023 net sales SEK Employees (FTEs) 81.1bn 13,185 Efficient sourcing and logistics Customer reach for all brands and channels ~4.5 million customers a week Innovative development 337 Group-owned stores of private label products 136 franchise Hemköp 130 franchise Tem
Slide 29: Axfood
Year-end report 2023 29 Axfood Q4 Q4 Key ratios SEK m 2023 2022 Chg 2023 2022 Chg Net sales 20,769 19,740 5.2% 81,111 73,474 10.4% Operating margin, % Change in like- 7.1% 15.7% -8.6 12.0% 10.4% 1.6 for-like sales* Net sales, SEK m 81,111 Operating profit 744 502 48.2% 3,353 3,101 8.1% 73,474 Adjust
Slide 30: Willys
Year-end report 2023 30 Willys Q4 Q4 Operating margin, % Key ratios SEK m 2023 2022 Chg 2023 2022 Chg Net sales, SEK m 43,757 Net sales 11,325 10,380 9.1% 43,757 37,4´51 16.8% 37,451 Change in like- 7.0% 20.4% -13.4 13.9% 13.5% 0.4 31,793 32,424 for-like sales 29,029 Operating profit 469 425 10.4% 2
Slide 31: Hemköp
Year-end report 2023 31 Hemköp Q4 Q4 Operating margin, % Key ratios SEK m 2023 2022 Chg 2023 2022 Chg Net sales, SEK m Net sales 1,976 1,792 10.3% 7,432 6,650 11.8% 7,432 6,378 6,650 Change in like- 6,354 6,202 for-like sales* 7.4% 6.6% 0.8 7.9% 4.5% 3.4 4.4 4.3 Operating profit 77 76 2.3% 300 283 5
Slide 32: Snabbgross
Year-end report 2023 32 Snabbgross Operating margin, % Q4 Q4 Net sales, SEK m Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 5,317 Net sales 1,244 1,170 6.4% 5,317 4,727 12.5% 4,727 Change in like-for- 4.8% 15.9% -11.1 10.4% 20.1% -9.7 3,443 3,825 like sales 3,417 5.3 4.8 5.0 5.0 Operating profit 58 5
Slide 33: Dagab
Year-end report 2023 33 Dagab Operating margin, % Net sales, SEK m Q4 Q4 Key ratios SEK m 2023 2022 Chg 2023 2022 Chg 74,175 66,999 Net sales 19,007 18,220 4.3% 74,175 66,999 10.7% 52,295 Operating profit 248 63 295.3% 1,021 978 4.5% 48,091 44,895 1.8 Adjusted operating 1.7 319 294 8.2% 1,271 1,139