Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q3 2013 Earnings Presentation
20 slides from Axfood Ab's earnings presentation, October 2013
Slide 1: Axfood July-September, 2013
Axfood July-September, 2013 Anders Strålman CEO 1
Slide 2: Axfood July-September 2013
Axfood July-September 2013 Net sales • Net sales: SEK 9,465 m (9,044) +4.7% – Focus on strong customer offerings and attractive stores • Operating profit: SEK 382 m (370) +3.2% – Operating margin: 4.0% (4.1) – Positive result for all business units • Continued focus on implementation of new business
Slide 3: Willys July-September 2013
Willys July-September 2013 • Good sales growth: SEK 5,092 m (4,818) +5,7% – Like-for-like sales: +2.2% – Successful customer programme had a positive impact on sales – More than 1 million members in the program Net sales • Operating profit: SEK 219 m (215) 1.9% – Operating margin: 4.3% (4.5) – Five
Slide 4: Hemköp July-September 2013
Hemköp July-September 2013 • Net sales: SEK 1,341 m (1,338) 0.2% – Like-for-like sales: 2.3% • Improved operating profit: SEK 42 m (36) – Operating margin: 3.1% (2.7) • New digital customer programme launched in October • A number of stores are being Operating margin modernized 4
Slide 5: Axfood Närlivs July-September 2013
Axfood Närlivs July-September 2013 • Good sales growth: SEK 1,738 m (1,652) +5.2% – Favorable weather and strong campaign offerings had a positive impact on sales • Operating profit: SEK 52 m (50) – Operating margin: 3.0% (3.0) • Implementation of new business system Operating profit will start in Q
Slide 6: Dagab July-September 2013
Dagab July-September 2013 • Operating profit: SEK 32 m (47) – Result affected by cost related to implementation of the new business system – System will be installed in the warehouse in Gothenburg during Q4 6
Slide 7: Market outlook
Market outlook • Uncertain development in Swedish economy • Stable growth in food retail industry • Around 2 percent food price inflation expected for the full year 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 programme • High level of private label share • Continued implementation of new business system 8
Slide 9: Axfood's estimation 2013
Axfood’s estimation 2013 Operating profit at least at the same level as in 2012 9
Slide 10: Financial overview July-September, 2013
Financial overview July-September, 2013 Karin Hygrell Jonsson CFO 10
Slide 11: Axfood: Strong result and sales growth
Axfood July-September 2013 • Strong result and sales growth Net sales, SEK m Operating margin, % Key ratios Q3 Q3 SEK m 2013 2012 Change 9 044 9 557 9 465 9 252 8 950 Net sales 9,465 9,044 4.7% Change in like-for-like sales, 2.3% 0.0% 2.3 % 4.1 4.0 3.4 Operating profit 382 370 3.2% 2.8 2.8 Operating
Slide 12: Willys: Good sales performance and stable earnings
Willys July-September 2013 • Good sales performance and stable earnings Net sales, SEK m Operating margin, % Key ratios Q3 Q3 4 818 4 927 4 919 5 174 5 092 SEK m 2013 2012 Change Net sales 5,092 4,818 5.7% Change in like-for-like sales, 2.2% -0.1% 2.3 4.5 4.3 % 3.9 4.1 3.5 Operating profit 219 215 1
Slide 13: Hemköp: Stable sales and improved result
Hemköp July-September 2013 • Stable sales and improved result Net sales, SEK m Operating margin, % Key ratios 1 474 Q3 Q3 1 338 1 407 1 392 1 341 SEK m 2013 2012 Change Net sales 1,341 1,338 0.2% Change in like-for-like sales, 2.3% 0.2% 2.1 %, Group-owned 3.9 Operating profit 42 36 16.7% 3.2 3.1 2.7
Slide 14: Axfood Närlivs: Favorable summer weather had positive impact on sales
Axfood Närlivs July-September 2013 • Favorable summer weather had positive impact on sales Net sales, SEK m Operating margin, % Key ratios Q3 Q3 SEK m 2013 2012 Change 1 652 1 728 1 738 Net sales 1,738 1,652 5.2% 1 570 1 427 3.0 3.0 Distributed sales 1,614 1,512 6.7% 2.4 Operating profit 52 50 4.0%
Slide 15: Dagab: Increased costs due to new business system
Dagab July-September 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 Q3 Q3 SEK m 2013 2012 Change 6 348 6 194 6 400 6 346 6 000 Net sales 6,346 6,000 5.8% Distributed sales 4,421
Slide 16: Other July-September 2013
Other July-September 2013 • Net sales: SEK 1,284 m (1,113), +15.4% – Good sales development for fruits & vegetables and meat • Operating profit: SEK 37 m (22) – Amortization of new business system with SEK 17 m (15) 16
Slide 17: Key ratios January-September 2013
Key ratios January-September 2013 • Balance sheet, total: SEK 8,460 m (8,499) • Cash flow operating activity: SEK 1,112 m (1,385) – Previous year was affected by lower tax payments • Capex: SEK 551 m (679) Capital expenditure – Investment plan 2013: SEK 800-900 m SEK m – Investment plan 2014: In lev
Slide 18: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's estimation is that operating profit for 2013 will be at least 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
Slide 19: Summary
Summary • Good sales development and result – Increased market share 19
Slide 20: Q&A
Q&A 20