Strong growth with clear future ventures
President and CEO Klas Balkow’s comments on the third quarter of the year:
“During the third quarter Axfood posted strong growth and further strengthened its position in the market. Headed by Willys, all segments showed favourable like-for-like sales, and the recently acquired companies contributed to our strong growth. We are continuing with our future ventures, which largely concern how we will develop our customer interface and improve our work approach in an increasingly digital world.
Operating profit for the quarter was our best ever, with stable underlying profitability. As expected, the margin was slightly lower as a consequence of our investments, mainly in digital growth.”
Third quarter summary
- Consolidated net sales amounted to SEK 11,578 m (10,853), an increase of 6.7%. On a pro forma[1] basis, sales increased by 7.7%.
- Operating profit was SEK 604 m (599), corresponding to an operating margin of 5.2% (5.5%).
- Net profit for the period was SEK 469 m (466), and earnings per share were SEK 2.23 (2.22).
- Axfood is focusing on growth and new investments, and the forecast is an operating profit for 2017 that is level with the outcome for 2016.
Summary of interim period January-September
- Consolidated net sales amounted to SEK 34,142 m (32,239), an increase of 5.9%. On a pro forma[1] basis, sales increased by 6.9%.
- Operating profit was SEK 1,488 m (1,501), corresponding to an operating margin of 4.4% (4.7%).
- Net profit for the period was SEK 1,157 m (1,166), and earnings per share were SEK 5.51 (5.55).
- During the first quarter Axfood carried out the offer to acquire all of the shares in Matse Holding AB. As per 30 September Axfood’s holding was 100% of the shares following the advance possession of the remainning shares covered by the compulsory redemption process.
Significant events after the balance sheet date
- Axfood has decided to reorganize Axfood Närlivs, effective at the start of 2018, entailing the transfer of customer responsibility for Tempo to Hemköp, the reporting of Axfood Snabbgross as its own segment, and the transfer of other Axfood Närlivs customers to Dagab.
Welcome to today’s presentation where President and CEO Klas Balkow together with CFO Anders Lexmon present the third quarter 2017. The presentation will be held at Hemköp’s “Rekobutik”, Norra Stationsgatan 80 A, at 9:30 a.m. The presentation is also web casted and can be followed via axfood.se or monitored by phone: Sweden: +46 8 566 426 66, UK: +44 203 0089 804, US: +1 855 8315 945.
[1] ) To reflect the acquisition of the fruit and vegetable warehouse operations as from 1 January 2017, pro forma figures are presented for the comparison periods.
For further information, contact:
Cecilia Ketels, Head of Investor Relations, Axfood AB, +46 72 23 606 43
The information in this release is such that Axfood AB is obligated to make public in accordance with the EU Market Abuse Act and the Swedish Securities Market Act. The information was presented, through the agency of the contact person above, for publication at 7:00 a.m. CET on 19 October 2017.
At Axfood we work with passion for food and people. Food that is good and sustainable. Axfood includes the Willys and Hemköp chains as well as Tempo, Handlar’n and Direkten, which are retailer-owned stores organized within Axfood Närlivs. B2B sales are handled through the Axfood Snabbgross chain, and wholesaling is conducted through Dagab. Axfood is also the owner of mat.se and Middagsfrid, and a part-owner of Urban Deli and Eurocash. Axfood is listed on Nasdaq Stockholm, and the principal owner is Axel Johnson AB. Read more at axfood.se
