Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q3 2024 Earnings Presentation
33 slides from Axfood Ab's earnings presentation, 2024
Slide 1: Growth across all segments and strong market positions
Growth across all segments and strong market positions Interim report Q3 2024
Slide 2: Agenda
Interim report Q3 2024 2 Agenda –Q3 2024 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q3 and market update
Interim report Q3 2024 3 Q3 and market update
Slide 4: State of Swedish food retail
Interim report Q3 2024 4 State of Swedish food retail Volumes recovering gradually Significant slowdown in inflation High price awareness among consumers Total market growth by quarter, y-o-y* Food price inflation by quarter, y-o-y** Yearly development of top factors’ (2023) importance to consumers
Slide 5: Significant market outperformance by Axfood over two years
Interim report Q3 2024 5 Significant market outperformance by Axfood over two years 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 25
Slide 6: Consistent market outperformance by Axfood online
Interim report Q3 2024 6 Consistent market outperformance by Axfood 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 30 25 25 19.3% 20 20 15 10 15 10.2%
Slide 7: Group net sales: Solid net sales growth across all operating segments
Interim report Q3 2024 7 Group net sales Solid net sales growth across all operating segments Net sales, SEK m +3.0% –Net sales increased by 3.0% 18,674 20,293 20,902 –Higher volumes and increased customer traffic 13,426 13,723 –Solid performance from Willys, strong growth in Hemköp and Snabbgross –
Slide 8: Group operating profit: Profits impacted by strategic price investments in Willys
Interim report Q3 2024 8 Group operating profit Profits impacted by strategic price investments in Willys Adj. operating margin, %* Adj. operating profit, SEK m* -8.0% –Operating profit SEK 1,007 m (1,036), adjusted 1,095 operating profit* SEK 1,007 m (1,095) 796 811 1,015 1,007 –Profit decline main
Slide 9: Willys
Interim report Q3 2024 9 Willys Growth in line with the market despite high comps, profits impacted by price investments –Net sales increased by 3.8% and LFL 2.4% –Growth in line with the market despite high comps Operating margin, % +3.8% –Significant efforts to strengthen price position Net sales,
Slide 10: Strong position for Willys with stable market share development
Interim report Q3 2024 10 Strong position for Willys with stable market share development Market share for Willys including Eurocash* New members in Willys Plus (thousands) Brand loyalty to Willys** by month, rolling 3-month basis New members (gross) 2020 2022 R12M to Sep. 2024 000’ % New members (g
Slide 11: Hemköp
Interim report Q3 2024 11 Hemköp Strong like-for-like development contributing to improved profitability –Net sales increased by 4.7% –Retail sales LFL growth of 4.5%, total 2.8% Operating margin, % +4.7% –LFL growth higher than the market Net sales, SEK m –Strengthened profile with focus on assortm
Slide 12: Modernisations of stores contributing to growth for Hemköp
Interim report Q3 2024 12 Modernisations of stores contributing to growth for Hemköp Retail sales y-o-y growth YTD to Sep. 2024 % 10 8.2% 8 6 5.4% 4 YTD growth for recently 8.2% modernised stores* 2 0 Recently Hemköp LFL modernised (inc. Tempo) Hemköp stores* *Refers to stores that have been signifi
Slide 13: Snabbgross
Interim report Q3 2024 13 Snabbgross Strong growth with higher volumes in a weak market –Net sales increased by 5.6% and LFL 4.9% –Strong performance in a weak market with increased Operating margin, % number of customers +5.6% –Strong growth for Snabbgross Club with continued Net sales, SEK m incre
Slide 14: Dagab
Interim report Q3 2024 14 Dagab Improved sales trend, profits impacted by costs related to new logistics structure –Net sales increased by 3.7% –Sequential improvement in sales growth trend +3.7% Adj. operating margin, %* –Growth driven by sales to Group-owned concepts Net sales, SEK m 18,410 19,090
Slide 15: Financial position
Interim report Q3 2024 15 Financial position
Slide 16: First nine-month sales and operating profit development
Interim report Q3 2024 16 First nine-month sales and operating profit development Net sales, SEK m Adj. operating profit, SEK m* Adj. operating margin, %* +3.1% -4.5% 62,197 2,787 -0.3 60,342 2,661 4.6% 4.3% 9M 9M 9M 9M 9M 9M 2023 2024 2023 2024 2023 2024 *Excluding items affecting comparability.
Slide 17: Cash generation analysis
Interim report Q3 2024 17 Cash generation analysis –Lower cash flow from operating activities, Cash flow from primarily due to changes in net working capital –Working capital negatively impacted calendar effects operating activities, SEK m –Cash flow from investing activities in line with 1,487 1,42
Slide 18: Financial position and investments
Interim report Q3 2024 18 Financial position and investments 10,724 26.4% 10,247 9,750 9,843 24.3% 3,547 9,339 23.9% 22.2% 2,593 Guidance 24.0% 24.1% 23.7% 21.8% 22.7% 1,946 1,600 -1,700 1.7 1.5 1.5 1.5 1.6 1,031 1,417 6.1% 1,058 3.5% 1.9% 2.4% 1.7% 1.4% 1.2% 2.3% 0.3 0.1 0.3 1.5% 1.4% 0.0 0.0 1.3%
Slide 19: Capital efficiency
Interim report Q3 2024 19 Capital efficiency 18,058 16,442 17,212 -3.4% -3.9% -3.5% -3.2% -3.5% 13,550 Net working capital 10,674 % of Group net sales -1,800 -2,260 24.2% 22.4% 20.9% 20.3% 19.6% -2,581 -2,620 -3.5% -2,902 2020 2021 2022 2023 R12M to 2020 2021 2022 2023 R12M to Sep. 2024 Sep. 2024 Ne
Slide 20: Strategic agenda, outlook and summary
Interim report Q3 2024 20 Strategic agenda, outlook and summary
Slide 21: Increasing automation and efficiencies
Interim report Q3 2024 21 Increasing automation and efficiencies Continued progress with new logistics structure Implementation of new IT platform for stores – Bålsta fully operational for stores in all temperature zones – New modern store platform developed to improve how stores – Expansion and aut
Slide 22: Acquisition of City Gross to close on 1 November following regulatory approvals
Interim report Q3 2024 22 Acquisition of City Gross to close on 1 November following regulatory approvals On 11 June, Axfood announced the acquisition of an additional 90.1 percent of the shares in food retail chain City Gross, taking its shareholding in City Gross to 100.0 percent. Consideration of
Slide 23: Hypermarket segment an attractive part of Swedish food retail
Interim report Q3 2024 23 Hypermarket segment an attractive part of Swedish food retail Hypermarkets have outperformed traditional grocery Food retail market Market and segment compounded annual growth rates (CAGR) segmentation in 2023 Total market Hypermarkets Discount Traditional grocery Tradition
Slide 24: Green transition and climate in focus
Interim report Q3 2024 24 Green transition and climate in focus Emissions from own transports, CO2e kg/tonne of goods -58% -43% 16.8 13.6 12.3 10.6 8.8 7.0 2021 2022 2023 Q1 Q2 Q3 2024 2024 2024 Accelerating the green transition Improving sustainability reporting – Clear decision to accelerate trans
Slide 25: Unchanged outlook 2024
Interim report Q3 2024 25 Unchanged outlook 2024 –Planned capital expenditures of SEK 1,600−1,700 m –Excluding acquisitions and leasehold –Including SEK 300 m for automation in the new logistics centre in Bålsta outside Stockholm, the distribution centre in Backa in Gothenburg and the new fruit and
Slide 26: Summary
Interim report Q3 2024 26 Summary Solid growth across Increased volumes Progress with new logistics Acquisition of City all operating segments, from continued high structure, store logistics in Gross to be completed strong market positions inflow of customers Bålsta now fully ramped up on 1 November
Slide 27: Q&A
Interim report @3 2024 Q&A 27 Axfood
Slide 28: Axfood at a glance
Interim report Q3 2024 28 R12M net sales to Q3 2024, SEK Employees (FTEs) 83.0bn 13,486 Efficient sourcing and logistics Customer reach for all brands and channels ~5 million customers a week Innovative development 342 Group-owned stores of private label products 133 franchise Hemköp 126 franchise T
Slide 29: Axfood
Interim report Q3 2024 29 Axfood Q3 Q3 9M 9M Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 Net sales 20,902 20,293 3.0% 62,197 60,342 3.1% 81,111 Operating margin, % Change in like- 3.1% 10.5% -7.4 3.8% 13.8% -10.0 12.0% for-like sales* Net sales, SEK m 81,111 82,966 Operating profit 1,007 1,036
Slide 30: Willys
Interim report Q3 2024 30 Willys Q3 Q3 9M 9M Operating margin, % Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 Net sales, SEK m Net sales 11,364 10,945 3.8% 33,914 32,432 4.6% 43,757 43,757 45,239 Change in like- 37,451 2.4% 12.4% -10.0 3.1% 16.6% -13.5 13.9% for-like sales 31,793 32,424 Operati
Slide 31: Hemköp
Interim report Q3 2024 31 Hemköp Q3 Q3 9M 9M Operating margin, % Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 Net sales, SEK m Net sales 1,863 1,779 4.7% 5,776 5,456 5.9% 7,432 7,751 7,432 6,650 Change in like- 6,354 6,202 for-like sales* 4.5% 6.4% -1.9 5.4% 8.1% -2.7 7.9% 4.4 4.6 Operating pro
Slide 32: Snabbgross
Interim report Q3 2024 32 Snabbgross Operating margin, % Q3 Q3 9M 9M Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 5,317 5,457 Net sales 1,518 1,437 5.6% 4,213 4,072 3.4% 5,317 4,727 Change in like-for- 4.9% 7.4% -2.5 2.7% 12.2% -9.5 10.4% 3,825 like sales 3,417 5.3 5.0 5.0 Oper
Slide 33: Dagab
Interim report Q3 2024 33 Dagab Operating margin, % Q3 Q3 9M 9M Net sales, SEK m Key ratios SEK m 2024 2023 Chg 2024 2023 Chg 2023 74,175 75,772 66,999 Net sales 19,090 18,410 3.7% 56,765 55,167 2.9% 74,175 52,295 Operating profit 312 280 11.5% 828 773 7.0% 1,021 48,091 1.8 Adjusted operating 1.7 31