Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q4 2024 Earnings Presentation
35 slides from Axfood Ab's earnings presentation, 2025
Slide 1: Strengthened market positions and completed acquisition of City Gross
Year-end report 2024 Strengthened market positions and completed acquisition of City Gross Year-end report 2024
Slide 2: An eventful year of continued growth and initiatives for the future
Year-end report 2024 2 An eventful year of continued growth and initiatives for the future Growth above the High pace in store Increased presence in 2024 Progress with Significant emissions reductions market and strengthened establishments, 12 new hypermarket segment with restructuring in transports
Slide 3: Agenda
Year-end report 2024 3 Agenda –Market update, Q4 and strategic agenda –Full year and financial position –Outlook and summary –Q&A
Slide 4: Market update, Q4 and strategic agenda
Year-end report 2024 4 Market update, Q4 and strategic agenda
Slide 5: Growth higher than the market
Year-end report 2024 5 Growth higher than the market Retail sales y-o-y growth, total including e-com Retail sales two-year stack, total including e-com % Axfood retail sales* Food retail trade index % Axfood retail sales* Food retail trade index 35 35 30 30 25 25 24.1% 20 20 15 14.1% 15 10.6% 10 10
Slide 6: Growth higher than the market also online
Year-end report 2024 6 Growth higher than the market also online Retail sales y-o-y growth, e-com Retail sales two-year stack, e-com % Axfood online sales* Food retail trade index online % Axfood online sales* Food retail trade index online 30 30 25 25 20 16.1% 20 15 10 15 5 10 7.3% 0 5.4% 5 -5 -10
Slide 7: A long history of market outperformance
Year-end report 2024 7 A long history of market outperformance Axfood has outperformed the market the last ten years ...and consequently seen strong market share gains Total retail sales y-o-y growth Total market share in value, pro forma 2024 including City Gross FY net sales % Axfood* Food retail
Slide 8: Group net sales: Strong growth and contribution from City Gross
Year-end report 2024 8 Group net sales Strong growth and contribution from City Gross Net sales, SEK m +5.3% 20,769 21,860 –Net sales increased by 5.3% 17,062 19,740 –Higher volumes the main driver of growth 13,633 –Food price inflation of 1.8%* –Retail sales increased by 14.1% –Retail sales increas
Slide 9: Group operating profit: Somewhat weaker development mainly due to City Gross
Year-end report 2024 9 Group operating profit Somewhat weaker development mainly due to City Gross Adj. operating margin, %* Adj. operating profit, SEK m* -5.3% –Operating profit SEK 629 m (744), adjusted 815 772 734 operating profit* SEK 772 m (815) 566 653 –Negative contribution from City Gross, a
Slide 10: Willys: Reinforcing strong position, growth more than the market
Year-end report 2024 10 Willys Reinforcing strong position, growth more than the market despite high comps –Net sales increased by 4.7% and LFL 3.0% –Growth more than the market despite high comps Operating margin, % +4.7% –Continued strong loyalty among existing customers and a positive inflow of n
Slide 11: Strong position for Willys, high volume growth in 2024
Year-end report 2024 11 Strong position for Willys, high volume growth in 2024 Volume growth Willys by year Total members Willys Plus, year-end Brand loyalty to Willys* 2020 2022 2024 Million % % 2021 2023 Market share 2024 5 CAGR 8% 4 3.8 CAGR 5% 3.6 61 60 3.3 3.0 55 3 2.9 53 2.7 50 2 21 22 16 17 1
Slide 12: Hemköp: Strong like-for-like development
Year-end report 2024 12 Hemköp Strong like-for-like development –Net sales increased by 6.4% –Retail sales LFL growth of 4.6%, total 3.1% Operating margin, % +6.4% –LFL growth higher than the market Net sales, SEK m 1,976 2,103 1,656 1,792 1,635 –Total store network 326 (326)* –High pace in store mo
Slide 13: City Gross: With acquisition, Axfood takes position in hypermarket segment
Year-end report 2024 13 City Gross With acquisition, Axfood takes position in hypermarket segment –Net sales amounted to SEK 1,646 m –Retail sales LFL growth of 0.1%, total -1.7% –Total store network 42 –Online in all stores –Operating profit SEK -40 m (–) –Operating margin -2.4% (–) –Weak like-for
Slide 14: Several improvement initiatives to strengthen City Gross
Year-end report 2024 14 Several improvement initiatives to strengthen City Gross 01 Leadership changes, 02 Brand and store 03 Review of customer offering, recently appointed Board concept development including focus on attractive- and Managing Director ness, efficiency, price value and private label
Slide 15: Snabbgross: Strong performance in challenging market
Year-end report 2024 15 Snabbgross Strong performance in challenging market –Net sales increased by 6.1% and LFL 5.3% –Strong performance in a weak market with increased Operating margin, % number of customers, increased market share Net sales, SEK m +6.1% –Strong growth for Snabbgross Club with con
Slide 16: Dagab: Lower cost level with progress in logistics restructuring
Year-end report 2024 16 Dagab Lower cost level with progress in logistics restructuring –Net sales increased by 4.3% –Continued sequential improvement in sales growth trend +4.3% Adj. operating margin, %* –Growth driven by sales to Willys, Hemköp and Snabbgross Net sales, SEK m 19,824 18,220 19,007
Slide 17: Increased productivity in Bålsta logistics centre
Year-end report 2024 17 Increased productivity in Bålsta logistics centre Bålsta logistics productivity Number of cases handled per worked hour by month, rolling 3-month basis 19% Mar Apr May Jun Jul Aug Sep Oct Nov Dec ’24 ’24 ’24 ’24 ’24 ’24 ’24 ’24 ’24 ’24
Slide 18: Significant reductions in emissions and food waste
Year-end report 2024 18 Significant reductions in emissions and food waste Emissions from own transports, Food waste as share CO2e kg/tonne of goods of retail sales, % -50% -58% 1.7 16.8 -36% 1.5 15.0 13.6 1.2 12.3 0.9 7.9 6.3 2021 Q4 2022 2023 2024 Q4 2015 2018 2021 2024 2021 2024 Accelerating the
Slide 19: Full year and financial position
Year-end report 2024 19 Full year and financial position
Slide 20: FY sales and operating profit
Year-end report 2024 20 FY sales and operating profit Net sales, Adj. operating Adj. operating SEK m profit, SEK m* margin, %* +3.6% -0.4 84,057 -4.7% 81,111 4.4% 3,602 4.1% 3,433 2023 2024 2023 2024 2023 2024 *Excluding items affecting comparability.
Slide 21: Cash generation analysis
Year-end report 2024 21 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 operating activities, SEK m –Cash flow from investing and financing activities impacted
Slide 22: Financial position and investments
Year-end report 2024 22 Financial position and investments 14,861 24.3% 24.1% 23.9% 3,547 21.8% 20.9% 3,100 10,724 9,339 9,750 9,843 2,593 2.2 1.5 1.5 1.5 1.6 1,946 1,031 6.1% 3.5% 3.7% 1.9% 2.4% 0.6 1.4% 1.2% 0.1 0.3 1.5% 1.5% 0.0 0.0 1.3% Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024 2020 2021 2022 2023
Slide 23: Capital efficiency
Year-end report 2024 23 Capital efficiency 22,985 -3.4% -3.9% -3.5% -3.2% -3.4% 16,442 17,212 Net working capital 13,550 % of Group net sales 10,674 -1,800 -2,260 24.2% 22.4% 20.9% 20.3% -2,581 -2,620 16.6% -3.4% -2,875 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Net working capital, SEK m Cap
Slide 24: Outlook and summary
Year-end report 2024 24 Outlook and summary
Slide 25: Outlook 2025
Year-end report 2024 25 Outlook 2025 Capital expenditures excluding leasehold, SEK m* –Planned capital expenditures of SEK 1,600-1,700 m –Excluding acquisitions and leasehold 2,593 1,946 Guidance 1,825 1,539 1,600-1,700 –Plan to establish 10-15 new Group-owned stores 1,481 1,031 –Items affecting com
Slide 26: Dividend
Year-end report 2024 26 Dividend Ordinary dividend per share, SEK 8.50 8.75 8.15 7.50 7.75 –The dividend policy sets the goal that 6.00 7.00 7.00 7.25 the shareholder dividend shall be at least 4.25 5.00 50 percent of profit after tax 3.75 –The dividend amount is to be paid on two occasions –The Boa
Slide 27: Summary
Year-end report 2024 27 Summary Increased market share and Continued high inflow Acquisition of City Positive effects strengthened market positions of new customers and Gross completed on from logistics driven by higher volumes strong customer loyalty 1 November restructuring
Slide 28: Q&A
Year-end report 2024 28 Q&A
Slide 29: Net sales 2024, SEK / Employees (FTEs)
Year-end report 2024 29 Net sales 2024, SEK Employees (FTEs) 84.1bn 13,709 Efficient sourcing and logistics Customer reach for all brands and channels ~5 million customers a week Innovative development 389 Group-owned stores of private label products 134 franchise Hemköp 124 franchise Tempo In total
Slide 30: Axfood
Year-end report 2024 30 Axfood Q4 Q4 Key ratios SEK m 2024 2023 Chg 2024 2023 Chg Net sales 21,860 20,769 5.3% 84,057 81,111 3.6% Operating margin, % Change in like- 3.5% 7.1% -3.6 3.7% 12.0% -8.3 for-like sales* Net sales, SEK m 81,111 84,057 Operating profit 629 744 -15.5% 3,290 3,353 -1.9% 73,474
Slide 31: Willys
Year-end report 2024 31 Willys Q4 Q4 Operating margin, % Key ratios SEK m 2024 2023 Chg 2024 2023 Chg Net sales, SEK m Net sales 11,861 11,325 4.7% 45,775 43,757 4.6% 45,775 43,757 Change in like- 37,451 3.0% 7.0% -4.0 3.1% 13.9% -10.8 for-like sales* 31,793 32,424 Operating profit 443 469 -5.5% 1,9
Slide 32: Hemköp
Year-end report 2024 32 Hemköp Q4 Q4 Operating margin, % Key ratios SEK m 2024 2023 Chg 2024 2023 Chg Net sales, SEK m 7,878 Net sales 2,103 1,976 6.4% 7,878 7,432 6.0% 7,432 6,650 Change in like- 6,354 6,202 for-like sales* 4.6% 7.4% -2.8 5.1% 7.9% -2.8 4.4 4.3 4.4 Operating profit 61 77 -21.6% 343
Slide 33: City Gross
Year-end report 2024 33 City Gross Q4 Q4 Key ratios SEK m* 2024 2023 Chg 2024 2023 Chg Net sales 1,646 – – 1,646 – – Change in like- – – – – – – for-like sales* Operating profit -40 – – -40 – – Operating margin -2.4% – – -2.4% – – Number of stores 42 – – 42 – – *Refers to the period 1 November - 31
Slide 34: Snabbgross
Year-end report 2024 34 Snabbgross Operating margin, % Q4 Q4 Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 5,533 5,317 Net sales 1,321 1,244 6.1% 5,533 5,317 4.1% 4,727 Change in like-for- 5.3% 4.8% 0.5 3.3% 10.4% -7.1 3,825 like sales 3,417 5.3 5.0 5.0 Operating profit 57 58 -1.5% 2
Slide 35: Dagab
Year-end report 2024 35 Dagab Operating margin, % Q4 Q4 Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 74,175 76,589 66,999 Net sales 19,824 19,007 4.3% 76,589 74,175 3.3% 52,295 Operating profit 329 248 32.5% 1,156 1,021 13.2% 48,091 1.8 Adjusted operating 1.7 329 319 3.2% 1,156 1,27