Axfood AB · OMXSTO:AXFO
Axfood AB — FY2012 Earnings Presentation
23 slides from Axfood AB's earnings presentation, January 2013
Slide 1: Axfood January-December 2012
Axfood January-December, 2012 1
Slide 2: Axfood January-December 2012
Axfood January-December 2012 Net sales • Favourable sales: SEK 36,306 m (34,795) +4.3% 36,306 +4.3% • Stable earnings: SEK 1,247 m (1,250) exkl impairment – Operating margin: 3.4% (3.6) exkl impairment • Positive result for all business units • Impairment of SEK 55 m for the PrisXtra brand 2
Slide 3: Willys – Best result ever
Willys – Best result ever • Stable sales growth: SEK 19,407 m (18,904), +2.7% – Like-for-like sales: 0.0% (-1,6) • Good result: SEK 796 m (775) +2.7% – Operating margin: 4.1% (4.1) • High pace in store modernization – Remaining 20 stores will be modernized during this year Operating profit • Develop
Slide 4: Hemköp – Best result in 10 years
Hemköp – Best result in 10 years • Good sales performance: SEK 5,082 m (4,787), +6.2% – Like-for-like sales: +2.0% (0,4) • Best result in ten years: SEK 133 m (94) – Operating margin: 2.6% (2.0) • Target 2013: At least 3% operating margin • Increased marketing activities Net sales • Thomas Gäreskog
Slide 5: PrisXtra's largest store to become Hemköp
PrisXtra’s largest store to become Hemköp • PrisXtras largest store at Norra Station will become Hemköp in 2013 – Future strategic location • Remaining four stores will gradually be converted to Hemköp or Willys • Impairment of SEK 55 m for the PrisXtra brand
Slide 6: PrisXtra – Continued positive result
PrisXtra – Continued positive result • Decrease in sales due to major road constructions – Net sales: SEK 502 m (549), -8.6% • Positive result: SEK 16 m (15) 6
Slide 7: Axfood Närlivs – Wholesale operation
Axfood Närlivs – Wholesale operation Net sales • Favourable sales growth, SEK 6,336 m (5,516), +14.9% +14.9% – Deliveries to new customers and good development in cash-and-carry business – New e-commerce site for business-to-business – Sales affected by bad weather conditions • Operating profit: SEK
Slide 8: Dagab – Efficient logistics
Dagab – Efficient logistics • Stable development – Efficiency and high delivery reliability • Operating profit: SEK 163 m (192) – Increased costs due to implementation of the new business system – Will continue to affect the result during 2013 Delivery reliability 97.5% 8
Slide 9: Market outlook
Market outlook • Uncertain development in Swedish economy but stable food retail market • Food price inflation initially at low levels • Competition remains high • Price conscious customers 9
Slide 10: Strategy for profitable growth
Strategy for profitable growth • Further stimulate sales growth – Well operated stores • High level of private label • Efficiency and cost control • Ambitious pace of investment – High pace in store establishments and renewals – Implementation of the new business system continues 10
Slide 11: Axfood's goal for 2013
Axfood’s goal for 2013 Achieve an operating profit at the same level as in 2012 11
Slide 12: Financial Overview
Financial Overview January-December, 2012 12
Slide 13: Axfood January-December 2012
Axfood January-December 2012 • Stable earnings and sales development • Impairment of SEK 55 m for the PrisXtra brand Net sales, SEK m Operating margin, % Key ratios 9,292 9,252 8,914 8,718 9,044 SEK m 2012 2011 Change Net sales 36,306 34,795 4.3% Change in like-for-like sales, 0.3% -1.1% 1.4 % 4.1 3
Slide 14: Willys January-December 2012
Willys January-December 2012 • Best result ever • High pace in store modernization Net sales, SEK m Operating margin, % Key ratios 4,961 4,927 SEK m 2012 2011 Change 4,848 4,701 4,818 Net sales 19,407 18,904 2.7% Change in like-for-like sales, 0.0% -1.6% 1.6 4.4 4.5 % 4.1 3.9 3.6 Operating profit 79
Slide 15: Hemköp January-December 2012
Hemköp January-December 2012 • Good profit and sales performance • Increased marketing activities Net sales, SEK m Operating margin, % Key ratios 1,347 SEK m 2012 2011 Change 1,255 1,271 1,239 1,225 Net sales 5,082 4,787 6.2% Change in like-for-like sales, 2.0% 0.4% 1.6 %, Group-owned 4.1 Operating
Slide 16: PrisXtra January-December 2012
PrisXtra January-December 2012 • Positive result • PrisXtra stores will be converted to Hemköp or Willys Net sales, SEK m Operating margin, % Key ratios SEK m 2012 2011 Change 140 132 130 127 Net sales 502 549 -8.6% 113 Change in like-for-like sales, 3.6 3.8 3.5 -8.6% -10.0% 1.4 3.0 2.4 % Operating
Slide 17: Axfood Närlivs January-December 2012
Axfood Närlivs January-December 2012 • Good sales mainly driven by deliveries to new customers and new businesses Net sales, SEK m Operating margin, % Key ratios SEK m 2012 2011 Change 1,673 Net sales 6,336 5,516 14.9% 1,652 1,570 1,382 1,441 3.0 Distributed sales 5,822 4,992 16.6% Operating profit
Slide 18: Dagab January-December 2012
Dagab January-December 2012 • 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 SEK m 2012 2011 Change 6,264 6,000 6,348 6,273 6,022 Net sales 24,634 24,295 1.4% Distributed sales 17,205 1
Slide 19: Other January-December 2012
Other January-December 2012 • Net sales: SEK 4,521 m (4,156), +8.8% • Operating profit: SEK -29 m (64) – Impairment of SEK 55 m for the PrisXtra brand – Amortization of new business system of SEK 55 m (33) 19
Slide 20: Key ratios January-December 2012
Key ratios January-December 2012 • Balance sheet, total: SEK 8,798 m (8,278) • Cash flow operating activity: SEK 1,915 m (1,384) • Capex: SEK 932 m (993) – Investment plan 2013: SEK 900-1,000 m • Reduced company tax rate had a positive Capital expenditure effect on profit after tax by SEK 50 m SEK m
Slide 21: Financial targets & dividend policy
Financial targets & dividend policy • Axfood's goal for 2013 is to achieve an operating profit 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% 21
Slide 22: Summary
Summary • Stable result and sales performance • All business units delivered a positive result 22
Slide 23: Axfood Q&A
Axfood Q&A 23