Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q3 2022 Earnings Presentation
35 slides from Axfood Ab's earnings presentation, 2022
Slide 1: Substantial growth and increased market share
Substantial growth and increased market share Interim report Q3 2022
Slide 2: Agenda
Interim report Q3 2022 2 Agenda –Market update –Q3 2022 –Financial position –Strategic agenda and outlook –Q&A
Slide 3: Market update
Interim report Q3 2022 3 Market update
Slide 4: Food retail market: High inflation and changing market dynamics
Interim report Q3 2022 4 Food retail market High inflation and changing market dynamics Pressure on households and changed shopping behaviours Post-pandemic normalisation Volume shift reversal to cafés and restaurants Est y-o-y volume growth food retail based on HUI index (R12M) Est y-o-y volume gro
Slide 5: Food retail market: Increasing and broad food price inflation
Interim report Q3 2022 5 Food retail market Increasing and broad food price inflation Food price inflation y-o-y by quarter Third quarter food price inflation y-o-y by category % % 16 34 32.9 15 14.5 32 14 30 28.4 13 28 12 26 11 24 23.1 10 22 8.9 9 20 8 18 15.8 15.5 7 16 14.9 6 14 13.3 12.0 11.7 5 1
Slide 6: Food retail market: Accelerated market growth with higher food price inflation
Interim report Q3 2022 6 Food retail market Accelerated market growth with higher food price inflation Food retail trade index, y-o-y sales growth in stores and online by quarter Food retail trade index, y-o-y sales growth in stores % % 15 15 14 10 8.6 8.9 7.6 5.3 13 5 3.6 3.8 3.0 1.1 1.6 12 0 11 -1
Slide 7: Q3 2022
Interim report Q3 2022 7 Q3 2022
Slide 8: Axfood clearly outperforming the market
Interim report Q3 2022 8 Axfood clearly outperforming the market Retail sales development, total including online Retail sales development, online Axfood retail sales Axfood online sales 16 % Food retail trade index 15.5% 160 % Food retail trade index online 15 150 140 14 130 13 120 12 110 11 100 10
Slide 9: Group net sales: Growth driven by acquisition, inflation and post-pandemic normalisation
Interim report Q3 2022 9 Group net sales +36.1% Growth driven by acquisition, inflation Net sales, SEK m 18,674 and post-pandemic normalisation 13,426 13,723 12,050 12,731 –Net sales increased by 36.1% –Bergendahls Food acquisition –High food price inflation –Continued strong recovery in the border
Slide 10: Group operating profit: Higher profits driven by strong sales growth and cost control
Interim report Q3 2022 10 Group operating profit Adj. operating margin, %* Higher profits driven by strong sales Adj. operating profit, SEK m* +25.2% growth and cost control 796 811 1,015 715 620 5.6 5.9 5.9 5.4 –Operating profit SEK 975 m (793), adjusted 5.1 operating profit* SEK 1,015 m (811) + St
Slide 11: Willys: Exceptional double-digit sales increase, strong Eurocash recovery
Interim report Q3 2022 11 Willys Exceptional double-digit sales increase, strong Eurocash recovery Operating margin, % +20.0% Net sales, SEK m 9,450 –Net sales increased by 20.0% and LFL 18.3% 7,862 7,873 7,259 –Exceptionally strong LFL retail sales increase for Willys 6,702 –Significantly higher sa
Slide 12: Willys: Accelerated market outperformance
Interim report Q3 2022 12 Willys Accelerated market outperformance Willys (incl. Eurocash) vs. food retail trade index, y-o-y sales growth* Willys (excl. Eurocash) penetration among Swedish households** Willys (incl. Eurocash) % Food retail trade index* % 20.0 20 60 57% 55 15 13.1 50 #1 10 9.7 9.5 8
Slide 13: Hemköp: Solid development in traditional grocery segment
Interim report Q3 2022 13 Hemköp Solid development in traditional grocery segment Operating margin, % Net sales, SEK m +10.2% –Net sales increased by 10.2%, LFL 9.7% for group- 1,520 1,514 1,608 1,483 1,459 owned Hemköp stores –Retail sales increased 7.0%, LFL 6.4% –More favorable development for la
Slide 14: Snabbgross: Strong profitability and record sales
Interim report Q3 2022 14 Snabbgross Strong profitability and record sales Operating margin, % +16.9% Net sales, SEK m 1 324 –Net sales increased by 16.9% and LFL 12.9% 1 132 –Strong growth despite high comps driven by post-pandemic 990 906 944 normalisation, food price inflation and successful new
Slide 15: Dagab: Significant growth supported by Bergendahls Food acquisition
Interim report Q3 2022 15 Dagab Significant growth supported by Bergendahls Food acquisition Adj. operating margin, %* +39.0% Net sales, SEK m 16,971 –Net sales increased by 39.0% –Net sales increase of 17.4% excluding Bergendahls Food 11,995 12,211 –Growth driven by both increased sales to food ret
Slide 16: Financial position
Interim report Q3 2022 16 Financial position
Slide 17: Strong nine-month sales and operating profit growth
Interim report Q3 2022 17 Strong nine-month sales and operating profit growth 31.6% Adj. operating margin, %* Net sales, SEK m Adj. operating profit, SEK m* +31.6% +22.6% 53,735 Net sales growth 9M 2022 2,496 22.6% 40,062 40,829 2,036 37,700 1,944 35,715 1,801 1,599 4.8 4.9 5.0 4.5 4.6 Adjusted oper
Slide 18: Strong operating cash flow
Interim report Q3 2022 18 Strong operating cash flow SEK m 9M 2022 9M 2021 Operating profit 2,599 1,965 Non-cash items 1,783 1,804 Net interests -111 -92 Paid tax -477 -323 SEK 4.1 bn Working capital 289 -52 Operating cash flow 4,083 3,302 Investing activities -1,872 -1,255 Loans raised 463 1,500 Ri
Slide 19: Higher investments in line with plan
Interim report Q3 2022 19 Higher investments in line with plan Acquisition Other Joint group Wholesale Retail SEK m SEK m 3,600 3,547 1 800 1 709 1,934 1 600 301 1,800 1 400 1,600 1,481 1 209 1 200 SEK 1.7 bn 1,400 281 1,200 1 000 1,021 1,031 1 062 1,000 800 800 764 546 580 600 600 400 400 Investmen
Slide 20: Net working capital
Interim report Q3 2022 20 Net working capital NWC as % of sales NWC, SEK m R12M to 2017 2018 2019 2020 2021 Sep. 2022 -2.0% -3.5% -919 -2.6% -3.0% -1,236 -3.4% -1,513 -3.5% -3.9% -1,800 NWC as % of sales -2,260 -2,479
Slide 21: Financial position
Interim report Q3 2022 21 Financial position Net debt (ex. IFRS 16), SEK m Net debt, SEK m Net debt/EBITDA 7,640 8,225 7,005 6,868 1.2x Net debt/EBITDA 5,454 5,218 5,185 5,481 5,016 4,920 1.5 1.5 4,577 26.4% 1.2 1.2 1.2 1.1 1.1 1.1 1.0 1.0 1.0 1,648 1,236 515 536 Equity ratio -259 -478 -350 -462 -1.
Slide 22: Return on capital employed
Interim report Q3 2022 22 Return on capital employed ROCE Capital employed, SEK m 13,550 13,628 13,588 12,865 12,360 10,674 10,326 10,149 9,526 9,648 9,651 25.8% 26.6% 25.6% 26.5% 26.4% 25.8% 24.7% 24.5% 24.5% 24.2% 22.6% 22.4% Return on capital employed 31 Mar. 30 Jun. 30 Sep. 31 Dec. 31 Mar. 30 Ju
Slide 23: Strategic agenda and outlook
Interim report Q3 2022 23 Strategic agenda and outlook
Slide 24: Managing the current operating environment
Interim report Q3 2022 24 Managing the current operating environment We continue to navigate through a challenging operating environment, with inflation affecting the entire supply chain.
Slide 25: Focus on efficient use of energy
Interim report Q3 2022 25 Focus on efficient use of energy We are managing our use of electricity and energy thoroughly, and have targets to reduce consumption, as well as hedge prices. Ambitious targets to reduce Efficient and environmentally friendly Exclusive use of green electricity, energy cons
Slide 26: Continued high pace in investments for the future
Interim report Q3 2022 26 Continued high pace in investments for the future New logistics platform City Gross store conversion Solar energy projects of IT platform Bålsta on track for automation implementation Ongoing integration of City Gross’ POS system Investments in solar energy, with rooftop so
Slide 27: Unchanged outlook 2022
Interim report Q3 2022 27 Unchanged outlook 2022 –Integration and transition costs totalling SEK 340 m –Costs related to the transition to Bålsta outside Stockholm of SEK 220 m –Integration costs of SEK 120 m related to Bergendahls Food –Planned capital expenditures of SEK 2,600−2,700 m –Excluding a
Slide 28: Summary third quarter
Interim report Q3 2022 28 Summary third quarter –Substantial growth and increased market share in exceptional time –Well positioned in the market, high capacity to navigate current operating environment –City Gross store conversions proceed in line with plan, continued steps towards optimised and au
Slide 29: Q&A
Interim report @3 2022 Q&A 29 Axfood
Slide 30: Affordable, good and sustainable food for everyone
Interim report Q3 2022 30 Affordable, good R12 month net sales SEK Employees (FTEs) and sustainable food for everyone 70.8bn 12,834 Efficient sourcing and logistics Customer reach for all brands and channels • ~4.5 million customers a week Innovative development of • 323 Group-owned stores private l
Slide 31: Axfood key ratios
Interim report Q3 2022 31 Axfood Q3 Q3 9M 9M Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 2021 Net sales 18,674 13,723 36.1% 53,735 40,829 31.6% 57,891 Change in like- 14.1% -0.4% 14.5 8.6% -0.1% 8.7 0.3% Operating margin, % for-like sales* Net sales, SEK m Operating profit 975 793 23.0% 2,599 1,965
Slide 32: Willys
Interim report Q3 2022 32 Willys Operating margin, % Q3 Q3 9M 9M Net sales, SEK m Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 2021 35,495 Net sales 9,450 7,873 20.0% 27,071 23,999 12.8% 32,424 31,793 32,424 29,029 27,066 Change in like- 18.3% -1.1% 19.4 11.1% -0.5% 11.6 0.0% for-like sales 4.9 4.9
Slide 33: Hemköp
Interim report Q3 2022 33 Hemköp Q3 Q3 9M 9M Operating margin, % Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 2021 Net sales, SEK m Net sales 1,608 1,459 10.2% 4,858 4,567 6.4% 6,202 6,403 6,378 6,354 6,493 6,202 Change in like- 9.7% 1.8% 7.9 5.9% 0.8% 5.1 1.3% for-like sales* 4.4 4.3 Operating prof
Slide 34: Snabbgross
Interim report Q3 2022 34 Snabbgross Operating margin, % Q3 Q3 9M 9M Net sales, SEK m Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 2021 4,543 Net sales 1,324 1,132 16.9% 3,557 2,840 25.3% 3,825 3,825 3,443 3,417 Change in like-for- 3,241 12.9% 11.6% 1.3 21.6% 5.6% 16.0 9.3% like sales 5.4 4.8 5.0 Op
Slide 35: Dagab
Interim report Q3 2022 35 Dagab Q3 Q3 9M 9M Operating margin, % Key ratios SEK m 2022 2021 Chg 2022 2021 Chg 2021 Net sales, SEK m Net sales 16,971 12,211 39.0% 48,780 36,579 33.4% 52,295 64,496 Operating profit 253 229 10.5% 915 681 34.2% 932 52,295 48,091 Adjusted operating 309 247 25.1% 845 699 2