Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q1 2025 Earnings Presentation
33 slides from Axfood Ab's earnings presentation, 2025
Slide 1: Increased market shares and stable profit development
Increased market shares and stable profit development Interim report Q1 2025
Slide 2: Increased market shares and stable profit development Q1
Interim report Q1 2025 2 Increased market shares and stable profit development Q1 Continued momentum and High activity level to strengthen Ramp-up of Bålsta logistics centre completed, strengthened market positions City Gross, new marketing concept plans initiated to expand capacity and efficiency f
Slide 3: Agenda
Interim report Q1 2025 3 Agenda –Market update, Q1 and strategic agenda –Financial position –Outlook and summary –Q&A
Slide 4: Market update, Q1 and strategic agenda
Interim report Q1 2025 4 Market update, Q1 and strategic agenda
Slide 5: Growth higher than the market
Interim report Q1 2025 5 Growth higher than the market Retail sales y-o-y growth Retail sales two-year stack % Axfood* Axfood ex. City Gross* Food retail trade index % Axfood* Axfood ex. City Gross* Food retail trade index 25 35 30 20 25 15.7% 23.7% 15 20 15 10 10 10.2% 5 3.0% 5 8.4% 0 1.9% 0 Q1 Q2
Slide 6: Group net sales
Interim report Q1 2025 6 Group net sales Strong growth in Willys, Hemköp and Snabbgross Net sales, SEK m +3.9% 21,040 –Net sales increased by 3.9% 16,593 19,252 20,252 –Higher volumes in Willys, Hemköp and Snabbgross 13,203 the main driver of growth –Retail sales increased by 15.7% –Retail sales inc
Slide 7: Group operating profit
Interim report Q1 2025 7 Group operating profit Stable profit development Adj. operating margin, %* -7.4% Adj. operating profit, SEK m* –Operating profit SEK 719 m (817), adjusted 750 817 757 operating profit* SEK 757 m (817) 565 653 –Adjusted operating profit excluding City Gross higher than in the
Slide 8: Willys: Increased market share and higher operating profit
Interim report Q1 2025 8 Willys Increased market share and higher operating profit –Net sales increased by 3.0% and LFL 1.2% –Growth clearly higher than the market Operating margin, % +3.0% –Continued strong loyalty among existing customers and a positive inflow of new customers Net sales, SEK m 11,
Slide 9: Strong momentum for Willys
Interim report Q1 2025 9 Strong momentum for Willys Strengthened brand perception for Willys Increasing customer base 2020 2022 2024 Market Growth in number of Willys Plus % 2021 2023 March 2025 share 2024 members vs. Q1 2024 +5.1% 65 60 61 55 53 50 Strengthening loyalty Growth in Willys Plus member
Slide 10: Discount is here to stay
Interim report Q1 2025 10 Discount is here to stay High price awareness among consumers Shopper demographics tilts younger Relatively small discount segment in Sweden Yearly development of top factors’ (2024) importance Value share of food retail sales from Discount segment share of food retail*** t
Slide 11: Hemköp: Strong like-for-like growth and increased market share
Interim report Q1 2025 11 Hemköp Strong like-for-like growth and increased market share –Net sales increased by 5.1% –Retail sales growth of 3.1%, LFL 2.9% Operating margin, % +5.1% –Growth clearly higher than the market Net sales, SEK m 1,956 2,055 1,818 –Total store network 327 (321) 1,554 1,589 –
Slide 12: City Gross: A year of transformation
Interim report Q1 2025 12 City Gross A year of transformation –Net sales amounted to SEK 2,059 m –Retail sales growth of -3.8%, LFL -3.3% –Volume declines and one store closure –Total store network 42 –Online in all stores –Operating profit SEK -118 m (–), adjusted operating profit* SEK -80 m (–) –O
Slide 13: Full steam ahead on improvement initiatives to strengthen City Gross
Interim report Q1 2025 13 Full steam ahead on improvement initiatives to strengthen City Gross 01 Operational 02 Brand and store 03 Customer offering efficiency concept development 04 Leadership and 05 Structural measures capabilities at a handful of stores
Slide 14: Snabbgross: Continued solid performance in challenging market
Interim report Q1 2025 14 Snabbgross Continued solid performance in challenging market –Net sales increased by 5.2% and LFL 4.1% –Solid performance in a weak market with a positive Operating margin, % inflow of new customers –Increase in Snabbgross Club memberships Net sales, SEK m +5.2% 1,240 –Tota
Slide 15: Dagab: Solid growth and higher profit with productivity gains
Interim report Q1 2025 15 Dagab Solid growth and higher profit with productivity gains –Net sales increased by 3.5% –Growth driven by sales to Willys, Hemköp and Snabbgross +3.5% Adj. operating margin, %* –Operating profit SEK 287 m (268) Net sales, SEK m 18,518 19,173 17,753 15,062 –Operating margi
Slide 16: Gradual productivity gains in the Bålsta logistics centre
Interim report Q1 2025 16 Gradual productivity gains in the Bålsta logistics centre Higher logistics productivity in Bålsta Number of cases handled per worked hour by month, rolling 3-month basis 21% Mar ’24 Jun ’24 Sep ’24 Dec ’24 Mar ’25
Slide 17: Plans for next steps in development of logistics structure
Interim report Q1 2025 17 Plans for next steps in development of logistics structure to support next phase of growth Strong volume growth Bålsta logistics centre serves Plans to create additional capacity and in Dagab in recent years central and northern Sweden efficiency in southern Sweden from 203
Slide 18: Financial position
Interim report Q1 2025 18 Financial position
Slide 19: Cash generation analysis
Interim report Q1 2025 19 Cash generation analysis –Lower cash flow from operating activities Cash flow from primarily due to changes in net working capital –Working capital negatively impacted by calendar effects due operating activities, SEK m to inventory build-up ahead of Easter –Cash flow from
Slide 20: Financial position and investments
Interim report Q1 2025 20 Financial position and investments 15,796 14,861 24.1% 3,547 23.9% 21.8% 20.9% 3,100 10,724 9,750 9,843 Guidance 2,593 1,946 1,600 2.2 2.3 19.4% 18.4% 18.1% -1,700 1.5 1.5 1.6 17.6% 16.8% 6.1% 3.5% 3.7% 373 2.4% 1.4% 1.2% 1.3% 1.5% 1.7% 354 1.8% 0.6 0.8 0.3 1.4% 1.7% 0.0 0.
Slide 21: Capital efficiency
Interim report Q1 2025 21 Capital efficiency 22,985 22,091 -3.9% -3.5% -3.2% -3.4% -3.3% 16,442 17,212 Net working capital 13,550 % of net sales -2,260 22.4% 20.9% 20.3% -2,581 -2,620 16.6% 16.8% -2,791 -3.3% -2,875 2021 2022 2023 2024 R12M to 31 2021 2022 2023 2024 R12M to 31 Mar. 2025 Mar. 2025 Ne
Slide 22: Outlook and summary
Interim report Q1 2025 22 Outlook and summary
Slide 23: Unchanged outlook 2025
Interim report Q1 2025 23 Unchanged outlook 2025 –Planned capital expenditures of SEK 1,600−1,700 m –Excluding acquisitions and leasehold –Plan to establish 10-15 new Group-owned stores –Items affecting comparability of SEK 100 m –Structural costs related to a handful of City Gross stores mainly thr
Slide 24: Capital Markets Day: Save the date
Interim report Q1 2025 24 Save the date Capital Markets Day 18 September 2025
Slide 25: Summary
Interim report Q1 2025 25 Summary Increased market Continued inflow High activity level to Bålsta logistics centre ramp-up shares driven by of new customers strengthen City Gross’ completed, plans initiated for next steps higher volumes and strong loyalty competitiveness in development of logistics
Slide 26: Q&A
Interim report @12025 Q&A 26 Axfood
Slide 27: Axfood at a glance
Interim report Q1 2025 27 R12M net sales to Q1 2025, SEK Employees, FTEs 84.8bn 14,578 Efficient sourcing and logistics Customer reach for all brands and channels ~5 million customers a week Innovative development 391 Group-owned stores of private label products 134 franchise Hemköp 125 franchise Te
Slide 28: Axfood
Interim report Q1 2025 28 Axfood Q1 Q1 Key ratios SEK m 2025 2024 Chg 2024 Net sales 21,040 20,252 3.9% 84,057 Operating margin, % Change in like-for-like sales* 1.7% 6.0% -4.3 3.7% Net sales, SEK m 81,111 84,057 84,845 Operating profit 719 817 -12.1% 3,290 73,474 Adjusted operating profit** 757 817
Slide 29: Willys
Interim report Q1 2025 29 Willys Q1 Q1 Operating margin, % Key ratios SEK m 2025 2024 Chg 2024 Net sales, SEK m Net sales 11,579 11,245 3.0% 45,775 45,775 46,110 43,757 Change in like-for-like sales* 1.2% 5.6% -4.4 3.1% 37,451 32,424 Operating profit 495 484 2.3% 1,992 5.0 4.7 4.7 4.4 4.3 Operating
Slide 30: Hemköp
Interim report Q1 2025 30 Hemköp Q1 Q1 Operating margin, % Key ratios SEK m 2025 2024 Chg 2024 Net sales, SEK m Net sales 2,055 1,956 5.1% 7,878 7,878 7,978 7,432 6,650 Change in like-for-like sales* 2.9% 7.0% -4.1 5.1% 6,202 Operating profit 94 101 -6.6% 343 4.4 4.3 4.4 4.2 4.0 Operating margin 4.6
Slide 31: City Gross
Interim report Q1 2025 31 City Gross Q1 Q1 Key ratios SEK m* 2025 2024 Chg 2024 Net sales 2,059 – – 1,646 Change in like-for-like sales – – – – Operating profit -118 – – -40 Adjusted operating profit** -80 – – -40 Operating margin -5.7% – – -2.4% Adjusted operating margin** -3.9% -2.4% Number of sto
Slide 32: Snabbgross
Interim report Q1 2025 32 Snabbgross Operating margin, % Q1 Q1 Net sales, SEK m Key ratios SEK m 2025 2024 Chg 2024 5,533 5,594 Net sales 1,240 1,178 5.2% 5,533 5,317 4,727 Change in like-for-like sales 4.1% 1.5% 2.6 3.3% 3,825 5.3 5.0 5.0 Operating profit 25 27 -5.4% 253 4.6 4.5 Operating margin 2.
Slide 33: Dagab
Interim report Q1 2025 33 Dagab Operating margin, % Net sales, SEK m 77,244 74,175 76,589 66,999 Q1 Q1 52,295 Key ratios SEK m 2025 2024 Chg 2024 1.8 Net sales 19,173 18,518 3.5% 76,589 1.5 1.4 1.5 1.5 Operating profit 287 268 7.0% 1,156 Operating margin 1.5% 1.4% 0.0 1.5% 2021 2022 2023 2024 R12M t