Axfood Ab · OMXSTO:AXFO
Axfood Ab — Q1 2023 Earnings Presentation
29 slides from Axfood Ab's earnings presentation, 2023
Slide 1: Increased market shares and high inflow of new customers
Increased market shares and high inflow of new customers Interim report Q1 2023
Slide 2: Agenda
Interim report Q1 2023 2 Agenda –Q1 and market update –Financial position –Strategic agenda, outlook and summary –Q&A
Slide 3: Q1 and market update
Interim report Q1 2023 3 Q1 and market update
Slide 4: Market development and inflation
Interim report Q1 2023 4 Market development and inflation Total market (Food Retail Trade Index), y-o-y sales growth by quarter* Food price inflation y-o-y by month** % % 26 26 24 24 -1.3pp 22 22 21.0 20 19.6 19.7 20 18.1 18.2 18 17.2 18 16.1 16 16 14.0 14 13.5 14 12 11.2 12 10 8.8 10 9.1 9.2 8.1 8.
Slide 5: Significant continued market outperformance by Axfood
Interim report Q1 2023 5 Significant continued market outperformance by Axfood Retail sales development, total including e-commerce Retail sales development, e-commerce % % Axfood retail sales Food retail trade index 19.8% Axfood online sales Food retail trade index online 20 40 35 30 25 15 20 15 10
Slide 6: Group net sales: Growth driven by inflation and high inflow of new customers
Interim report Q1 2023 6 Group net sales +16.0% Growth driven by inflation and Net sales, SEK m 19,252 high inflow of new customers 16,593 13,067 13,203 11,931 –Net sales increased by 16.0% –High food price inflation –High inflow of new customers Q1 Q1 Q1 Q1 Q1 –Retail sales increased by 19.8% 2019
Slide 7: Group operating profit: Higher profit driven by strong sales growth, stable margin
Interim report Q1 2023 7 Group operating profit Adj. operating margin, %* +14.9% Higher profit driven by strong Adj. operating profit, SEK m* 750 sales growth, stable margin 544 565 653 485 4.3 3.9 3.9 –Operating profit SEK 695 m (835), adjusted 4.2 4.1 operating profit* SEK 750 m (653) –Higher prof
Slide 8: Willys: Significant market outperformance
Interim report Q1 2023 8 Willys Significant market outperformance Operating margin, % +24.3% Net sales, SEK m 10,465 –Net sales increased by 24.3% and LFL 21.5% 8,418 7,985 –Exceptionally strong performance by Willys chain with high inflow 7,740 of new customers, growth rate significantly higher tha
Slide 9: Willys: Attracting many new customers
Interim report Q1 2023 9 Willys Attracting many new customers New members in Willys Plus by month, rolling three-month average 55,000 50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 0 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Slide 10: Hemköp: Continued strong development in traditional grocery segment
Interim report Q1 2023 10 Hemköp Continued strong development in traditional grocery segment Operating margin, % Net sales, SEK m +14.4% –Net sales increased by 14.4% 1,818 1,599 1,625 1,589 –Retail sales increased 10.9% which was slightly higher than 1,554 the market, LFL 9.4% –More favorable devel
Slide 11: Hemköp: Concept development and successful campaigns generating results
Interim report Q1 2023 11 Hemköp Concept development and successful campaigns generating results
Slide 12: Snabbgross: Strong sales, margin impacted by higher operational costs
Interim report Q1 2023 12 Snabbgross Strong sales, margin impacted by higher operational costs and negative mix Operating margin, % +22.7% Net sales, SEK m 1 147 –Net sales increased by 22.7% and LFL 19.2% 934 –Strong growth driven by post-pandemic normalisation, food price 777 inflation and success
Slide 13: Dagab: High pace of growth and solid productivity despite restructuring
Interim report Q1 2023 13 Dagab High pace of growth and solid productivity despite restructuring of operations Adj. operating margin, %* +17.9% Net sales, SEK m 17,753 15,062 –Net sales increased by 17.9% –Growth mainly driven by increased sales to food retail 11,880 11,634 10,577 –Operating profit
Slide 14: Financial position
Interim report Q1 2023 14 Financial position
Slide 15: Cash generation analysis
Interim report Q1 2023 15 Cash generation analysis –Lower cash flow from operating activities, primarily due to changes in working capital Cash flow from –Inventory build-up ahead of Easter operating activities –Restructuring in logistics operations –Decrease in accounts payable due to capital expen
Slide 16: Financial position and investments
Interim report Q1 2023 16 Financial position and investments 10,889 3,547 24.3% 8,982 24.6% 21.8% 8,225 24.1% 7,005 6,868 2,593 Guidance 1,800 1.9 18.0% 18.4% 18.1% -1,900 1.5 1.6 17.7% 17.6% 1.2 1.2 1,481 531 551 1,031 6.1% 0.4 0.4 4.2% 4.2% 3.9% 3.6% 2.9% 3.5% 3.2% 2.9% 0.1 0.1 0.0 4.1% 1.9% Q1 Q2
Slide 17: Capital efficiency
Interim report Q1 2023 17 Capital efficiency 16,442 16,549 -3.0% -3.4% -3.5% -3.4% 13,550 -3.9% 10,178 10,674 -1,513 -1,800 -2,260 30.1% NWC % of net sales, R12M -3.4% 24.2% 22.4% 20.9% 20.3% -2,581 -2,602 2019 2020 2021 2022 R12M to 31 2019 2020 2021 2022 R12M to 31 Mar. 2023 Mar. 2023 Net working
Slide 18: Strategic agenda, outlook and summary
Interim report Q1 2023 18 Strategic agenda, outlook and summary
Slide 19: Strategic focus areas
Interim report Q1 2023 19 Strategic focus areas Customer Customer Expansion Supply chain Work approach Our people offering meeting Axfood will grow in Axfood will develop Axfood is to be a Axfood aspires to be the Axfood will offer an With relevant concepts new and existing areas a sustainable produ
Slide 20: New highly automated logistics centre in Bålsta now in operation
Interim report Q1 2023 20 New highly automated logistics centre in Bålsta now in operation
Slide 21: Unchanged outlook 2023
Interim report Q1 2023 21 Unchanged outlook 2023 –Planned capital expenditures of SEK 1,800−1,900 m –Excluding acquisitions and leasehold –Including SEK 400 m for the new logistics centre in Bålsta, in accordance with investment plan –Including SEK 170 m for the new fruit and vegetable warehouse in
Slide 22: Summary
Interim report Q1 2023 22 Summary –Strong growth at more than twice the rate of the market resulted in increased market shares –High inflow of new customers –Continued focus on increased efficiency and reducing costs, significant steps towards optimised and automated logistics platform in Bålsta –St
Slide 23: Interim report Q1 2023 Q&A
Interim report @12023 23 Axfood
Slide 24: Axfood at a glance: net sales, employees and customer reach
Interim report Q1 2023 24 R12 month net sales SEK Employees (FTEs) 76.1 bn 12,421 Efficient sourcing and logistics Customer reach for all brands and channels • ~4.5 million customers a week Innovative development of • 330 Group-owned stores private label products • 136 franchise Hemköp • 131 franchi
Slide 25: Axfood key ratios
Interim report Q1 2023 25 Axfood Q1 Q1 Key ratios SEK m 2023 2022 Chg 2022 Net sales 19,252 16,593 16.0% 73,474 Operating margin, % Change in like- 17.5% 3.1% 14.4 10.4% for-like sales* Net sales, SEK m 73,474 76,134 Operating profit 695 835 -16.7% 3,101 Adjusted operating 57,891 profit 750 653 14.9
Slide 26: Willys
Interim report Q1 2023 26 Willys Q1 Q1 Operating margin, % Key ratios SEK m 2023 2022 Chg 2022 Net sales, SEK m 39,498 37,451 Net sales 10,465 8,418 24.3% 37,451 31,793 32,424 Change in like- 21.5% 4.1% 17.4 13.5% 29,029 for-like sales Operating profit 454 367 23.7% 1,859 4.9 4.9 5.0 4.9 4.7 Operati
Slide 27: Hemköp
Interim report Q1 2023 27 Hemköp Q1 Q1 Operating margin, % Key ratios SEK m 2023 2022 Chg 2022 Net sales, SEK m 6,878 Net sales 1,818 1,589 14.4% 6,650 6,650 6,378 6,354 6,202 Change in like- 9.4% 1.3% 8.1 4.5% for-like sales* 4.4 4.3 Operating profit 71 66 7.4% 283 4.2 3.8 3.6 Operating margin 3.9%
Slide 28: Snabbgross
Interim report Q1 2023 28 Snabbgross Operating margin, % Q1 Q1 Net sales, SEK m Key ratios SEK m 2023 2022 Chg 2022 4,939 4,727 Net sales 1,147 934 22.7% 4,727 3,825 3,443 3,417 Change in like-for- 19.2% 24.7% -5.5 20.1% like sales 5.3 5.1 4.8 5.0 Operating profit 30 30 -0.7% 252 4.4 Operating margi
Slide 29: Dagab
Interim report Q1 2023 29 Dagab Q1 Q1 Operating margin, % Key ratios SEK m 2023 2022 Chg 2022 Net sales, SEK m Net sales 17,753 15,062 17.9% 66,999 69,690 66,999 Operating profit 207 429 -51.8% 978 52,295 48,091 Adjusted operating 261 247 5.9% 1,139 44,895 profit 1.7 1.8 Operating margin 1.2% 2.8% -