Interim Report, Axfood AB (publ.) For the period January 1 - September 30, 2001

• Consolidated sales totaled SEK 23,872 m (22,166), an increase
of 7.7 percent.

• Operating income amounted to SEK 498 m (106), with an operating
margin of 2.0 percent (0.5). Income adjusted for items affecting
comparability totaled SEK 531 m (232).

• Income after net financial items amounted to SEK 403 m (20).
Adjusted for items affecting comparability, income after net financial
items was SEK 436 m (146).

• Continued strong total earnings during the third quarter,
especially for Axfood Lågpris, Spar Finland, and the wholesaling
operations - Dagab and Axfood Närlivs.

• Axfood AB has made a cash offer to the shareholders of Spar
Finland Abp for the outstanding shares of Spar Finland. The offer, EUR
27 per share, is in effect from October 1 - November 1.

• Axfood is acquiring a store chain in western Sweden with annual
sales of approximately SEK 350 m.

• Axfood is terminating its involvement in Baltic Food, entailing
a one-time cost of SEK 25 m.


SEK m July-Sept. Jan.-Sept. Jan.- Dec. 2001 2000 2001 2000 2000Sales 8,134 7,448 23,872 22,166 30,230Operating income before 282 207 857 434 550depreciationOperating income 160 88 498 106 112Operating margin, percent 2.0% 1.2% 2.0% 0.5% 0.4%Operating income beforeitems affecting 186 86 531 232 274comparabilityOperating margin beforeitems affecting 2.3% 1.2% 2.2% 1.0% 0.9%comparabilityIncome after financial 130 58 403 20 0itemsIncome after tax 80 29 257 0 -34Earnings per share, SEK 1.50 0.54 4.83 0 -0.64Equity ratio, % - - 17.2% 14.7% 13.7%Return on capital employed, - - 13.5% 4.5% 3.8%percentReturn on shareholders' - - 22.1% 0.0% Neg.equity after tax, %

CEO's comments
During the third quarter Axfood showed stable earnings growth, most
notably at Axfood Lågpris, Dagab, Axfood Närlivs and Spar Finland.
Axfood Lågpris's volume growth is coming from comparable units as well
as from newly established stores, which shows that the concept is
appreciated by new and old customer groups alike. The wholesale
operations - Dagab and Axfood Närlivs - are showing good earnings,
mainly due to lower costs in the companies.

Hemköp's earnings were weak during the third quarter. The new management
team is successively carrying out an action program aimed at cutting
costs, modernizing the store structure, lowering prices, and lifting
forth Hemköp's unique values. Our judgement is that the negative trend
at Hemköp will be broken during the second half of 2002 at the latest.
Hemköp's store structure is being strengthened through the acquisition
of three stores in the Gothenburg area. The stores were acquired in
October and have total sales of approximately SEK 350 m.

After seven months in the black we can see a definite turnaround at Spar
Finland. In order to achieve maximum synergies in purchasing, IT and
administration, we have made an offer for the outstanding shares in Spar
Finland.

Mats Jansson


Market development
The trend for the retail sector remained positive during the third
quarter of 2001, according to data released by the Swedish Research
Institute of Trade (HUI). Sales growth in current prices was 3.9 percent
in September and 4.0 percent for the first nine months of the year.

Sales and earnings of the Axfood Group
Consolidated sales of the Axfood Group, including Spar Finland Abp,
amounted to SEK 23,872 m (22,166) during the period.

The Axfood Group's sales in Sweden during the period (in own and
collaborating stores) amounted to SEK 24,797 m, including VAT, an
increase of 1.7 percent in volume, or 4 percent in current prices,
compared with the preceding year.

Operating income for the period amounted to SEK 498 m (108). The
operating margin was 2.0 percent (0.5). The operating margin before
items affecting comparability and goodwill was 2.6 percent (1.4). Items
affecting comparability amounted to SEK -33 m (-126) for the period and
pertain mainly to the SEK 25 m write-down of Axfood's involvement in
Baltic Food. Net financial items amounted to SEK -95 m (-86). Income
after financial items thus totaled SEK 403 m (20). The margin after
financial items was 1.7 percent (0.1).

Store operations
The store operations are conducted through wholly owned chain concepts
(Hemköp, Axfood Lågpris and Axfood Direkt - comprising the Group's e-
commerce business) and in collaboration with private merchants in
established store concepts (Spar, Tempo and Vivo).

Hemköp has a total of 104 stores nationwide. The concept emphasizes the
environment, health and quality, and is based on breadth and depth in
the product assortment, especially of fresh products. The Hemköp Group
also includes Billhäll's nine stores in the Gothenburg area.

The weak trend for Hemköp during the year is being countered by a
sweeping process of change. This work is concentrated on reducing costs,
modernizing the store structure and further enhancing Hemköp´s profile.

Sales during the period totaled SEK 4,741 m (4,742). Operating income
before goodwill (EBITG) amounted to SEK 98 m (141), and the operating
margin for the period was 2.1 percent (3.0).

During the third quarter one store was converted to a Willy's and one
store was closed.

Axfood Lågpris is the market leader in Sweden's discount segment.
Business is conducted under three consumer brands: Willy's, Matex/Exet
and HP Billigt & Nära, totaling 89 stores. Axfood Lågpris collaborates
with a number of private merchants - 25 stores in all - through
franchising agreements.

Conversion to the new Willy's concept will begin during the first
quarter of 2002. Some 70 stores in all will be affected. The smaller
Axfood Lågpris units will continue to operate under the HP Billigt &
Nära name.

During the third quarter, one store was established, one was acquired,
one was closed and one was converted to Willy's.

Axfood Lågpris has had very strong volume growth throughout 2001, and
this continued during the third quarter. Sales by wholly owned stores
during the period totaled SEK 5,746 m (3,964). Income for the period
(EBITG) amounted to SEK 217 m (120), and the operating margin was 3.8
percent (3.0).

Axfood Direkt conducts the Group's e-commerce retail business, offering
three online shopping sites: hemkop.nu (in Stockholm), and willys.nu and
billhalls.se (in Gothenburg).

Following a normally weak summer, sales for Axfood Direkt have risen
somewhat, however, the rate of growth is unsatisfactory. Renewed
marketing efforts have been made and are continuing in the fourth
quarter. Sales during the period totaled SEK 56 m (62). Income (EBITG)
amounted to SEK -30 m (-18).

Axfood Franchise collaborates with private merchants in Sweden through
three concepts: Spar, Tempo and Vivo. The approximately 500 stores in
this segment are customers of Axfood's wholesale operation.

Conversion of the some 170 Vivo stores outside Stockholm to the Spar
chain is proceeding according to plan. As per the end of September there
were 41 Spar stores. 110 stores are expected to be converted by year-
end. Altogether the 170 stores have sales of approximately SEK 6
billion.

Axfood Franchise is reported under joint-Group items. Income (EBITG) for
the period amounted to SEK 22 m (9).



Change of store structure during the period - Group-owned stores in
Sweden
New Store
establi acquisitions Closures Sales Conversions TOTAL
shments CHANGE
to from
Lågpris 3 30 4 0 4 0 33
(incl. HP)
Hemköp 0 2 2 0 1 2 -1
Franchise 0 0 1 2 0 3 -6
TOTAL 3 32 7 2 5 5 26

Axfood Partihandel (wholesaling) - Sweden
Axfood's wholesaling operation consists of Dagab, which supplies goods
to Axfood's wholly owned chains and to collaborating merchants, and
Axfood Närlivs, which supplies goods to convenience stores, mini-grocery
stores and service stations, such as OK/Q8 and Shell Select. Axfood
Närlivs also has a cash-and-carry operation comprising some twenty
wholesale outlets, where restaurant and store proprietors can make
purchases themselves and pay in cash.

The positive trend for Axfood's wholesaling operation continued during
the third quarter. Dagab showed good volume growth, which was enhanced
by strong sales at Willy's, among other things. Axfood Närlivs also had
favorable growth in volume, which together with the rationalization
measures that have been carried out, contributed to a favorable earnings
trend for the period.

Axfood's wholesale operation posted sales of SEK 13,462 m (12,635)
during the period. Of this amount, Dagab accounted for SEK 10,766 m and
Axfood Närlivs for SEK 3,428 m. Income (EBITG) amounted to SEK 256 m
(140), and the operating margin was 1.9 percent (1.1). Of this total,
Dagab accounted for SEK 198 m and Axfood Närlivs for SEK 58 m.

Spar Finland
Axfood's long-term strategy is to expand in the Nordic region and
establish a strong market position in each country.

The subsidiary Spar Finland Abp has approximately 9 percent of the
Finnish market. Following additional stock purchases, Axfood owned 62
percent of the capital and 69 percent of the votes in Spar Finland at
the end of the period. Axfood has made a cash offer for the outstanding
shares in Spar Finland (EUR 27 per share), which remains in effect
through November 1.

Spar Finland has a jointly owned wholesale operation and a store network
comprising 305 stores, of which 78 are wholly owned. Spar Finland has
been working intensively in 2001 on reversing the preceding year's
losses and has shown a positive volume and earnings trend since
February.

The store structure is being converted to two concepts, Spar and
Eurospar, with the Eurospar concept accounting for 11 stores. The growth
of these stores has had a favorable impact on sales.

Sales during the period amounted to SEK 4,233 m (3,813), and income
(EBITG) totaled SEK 32 m (-14).

Baltic Food
In 1998, the former Dagab established a wholesale operation in Estonia
in a joint venture with Norwegian interests. The operation also included
a store chain in the Baltic region.

In connection with Axfood's formation in May 2000, it was decided that
Axfood's expansion would take place in the Nordic countries.
Consequently, Axfood has worked actively to divest its stake in Baltic
Food. In 2001, operations performed worse and the company developed
acute financial problems. The former management of Baltic Food has on
repeated occasions provided false information to the Board, and an
investigation has been initiated to determine whether legal action can
be taken.

The Norwegian principal owners have injected new capital into Baltic
Food, and Axfood's ownership stake is now 5 percent. Axfood is writing
down its total involvement in Baltic Food, entailing a one-time cost of
SEK 25 m.

Capital expenditures
Capital expenditures during the period amounted to SEK 382 m. Of these,
investments in fixed assets in the wholesaling operation and in the
store network in Sweden accounted for SEK 273 m, and investments in
fixed assets by Spar Finland accounted for SEK 41 m. During the period,
shares in Spar Finland worth SEK 68 m were acquired. After the
acquisition, Axfood has 69 percent of the votes and 62 percent of the
capital in Spar Finland.

Financial position
Cash flow from continuing operations amounted to SEK 677 m during the
period (291). Lending from Handelskredit decreased during the period by
SEK 98 m and amounted to SEK 359 m at the close of the period.

The Group's liquid assets amounted to SEK 281 m. Interest-bearing assets
amounted to SEK 677 m (753), and interest-bearing net debt was SEK 1,847
m (2,165).

The equity ratio was 17.2 percent (14.7), while the debt-equity ratio,
net, was 1.5 (2.0).

Restructuring reserve
During the period under review, costs of SEK 65 m were charged against
the restructuring reserve, which amounted to SEK 100 m on December 31,
2001. The closing restructuring reserve amounted to SEK 35 m.

Employees
The Axfood Group had an average of 8,455 full-year employees during the
first nine months of the year (8,100).

Parent Company
The Parent Company's sales during the period amounted to SEK 18 m. After
SEK 52 m in administrative expenses and net financial items of SEK -19
m, income after financial items amounted to SEK -53 m (-27). Capital
expenditures totaled SEK 1 m.

Accounting principles
In this interim report, the Group has applied the new accounting
recommendations that took effect on January 1, 2001. In other respects
the same accounting principles and calculation methods as in the 2000
Annual Report have been applied.

The next reporting date will by Monday, February 11, 2002.

Stockholm, Sweden, October 26, 2001

Axfood AB (publ.)

The Board of Directors


We have conducted a limited review of the accompanying interim report in
accordance with the recommendation issued by the Swedish Institute of
Authorized Public Accountants (FAR). A limited review is considerably
less in scope than an audit. Nothing has come to our attention that
indicates that the interim report does not fulfill the requirements of
the Swedish Stock Exchange Act and the Swedish Annual Accounts Act.

Stockholm, Sweden, October 26, 2001


Caj Nackstad Per Bergman
Authorized Public Accountant Authorized Public Accountant

Sales per business unit and market, SEK m


July-Sept. Jan.-Sept. Jan.- Dec. 2001 2000 2001 2000 2000Hemköp 1,531 1,526 4,741 4,742 6,562Axfood Lågpris 2,068 1,402 5,746 3,964 5,333Axfood Direkt 16 19 56 62 84Spar Finland 1,473 1,310 4,233 3,813 5,139Axfood wholesaling 4,585 4,278 13,462 12,635 17,313Other1 577 333 1,679 1,238 1,896Internal sales - - - 6,045 - 4,288 - 2,116 1,420 6,097Total 8,134 7,448 23,872 22,166 30,2301) Includes joint-Group functions and the support companies IT,Fastigheter, Handelskredit, Egna Märkesvaror and Franchise.Operating income for the period before goodwill amortization(EBITG) is broken down as follows:SEK m July-Sept. Jan.-Sept. Jan.- Dec. 2001 2000 2001 2000 2000Hemköp 22 56 98 141 172Axfood Lågpris 73 50 217 120 133Axfood Direkt - 12 - 7 - 30 - 18 -20Spar Finland 26 5 32 - 14 -25Axfood wholesaling 90 40 256 140 222Other1 17 -28 47 - 51 -97Total 216 116 620 318 385Items affecting - 26 2 -33 - 126 - 162comparabilityOperating result beforegoodwill amortization 190 118 587 192 223Goodwill amortization - 30 - 30 -89 - 86 - 111Operating income for the 160 88 498 106 112period

1) Includes joint-Group functions and the support companies IT,
Fastigheter, Handelskredit, Egna Märkesvaror and Franchise.


Condensed income statement
SEK m
July-Sept. Jan.-Sept. Jan.-Dec.
2001 2000 2001 2000 2000
Net sales 8,134 7,448 23,872 22,166 30,230
Cost of goods sold - 7,026 - - 20,724 - -27,372
6,538 19,739
Gross income 1,108 910 3,148 2,427 2,858

Selling/administrative - 826 - 703 -2,291 - 1,993 - 2,308
expenses
Operating income 282 207 857 434 550
before deprecation
Depreciation - 92 - 89 - 270 - 242 - 327
Operating income
before goodwill 190 118 587 192 223
amortization
Goodwill amortization - 30 - 30 - 89 - 86 - 111
Operating income 160 88 498 106 112
Net financial items - 30 - 30 - 95 - 86 - 112
Income after financial 130 58 403 20 0
items
Taxes - 45 - 16 - 140 - 19 - 24
Minority share - 5 - 13 - 6 - 1 - 10
Income for the period 80 29 257 0 - 34
Earnings per share, 1.50 0.54 4.83 0 -0.64
SEK
Earnings per share 1.48 0.54 4.76 0 -0.64
after dilution, SEK1)
1) After taking into account outstanding convertible and warrant
programs.

Condensed balance sheet

SEK m
9/30/2001 9/30/2000 12/31/2000
Assets
Goodwill 1,139 1,136 1,195
Financial fixed assets 604 714 681
Other fixed assets 2,214 2,016 2,206
Inventories, etc. 1,501 1,352 1,518
Other current assets 1,613 1,762 1,707
Cash and bank balances 281 268 278

Total assets 7,352 7,248 7,585

Shareholders' equity and
liabilities
Shareholders' equity1) 1,136 884 855
Minority interests 127 178 181
Provisions1) 609 524 544
Interest-bearing liabilities 2,159 2,559 2,610
Noninterest-bearing 3,321 3,103 3,395
liabilities

Total shareholders' equity and 7,352 7,248 7,585
liabilities
1) A change in accounting principles has been made. Booking of
taxes has been adapted to Swedish Financial Accounting Standards Council
recommendation no. 9.

Cash flow statement
SEK m
Jan.-Sept. Jan.- Jan.-
Sept. Dec.
2001 2000 2000
Cash flow from operating activities 677 291 445
Investing activities:
- Company acquisitions, net - 107 - 239 - 212
- Purchase of fixed assets, net - 231 - 422 - 612
- Reduction of financial fixed 105 175 134
assets
Cash flow from investing activities - 233 - 486 - 690
Financing activities
- New issue - 180 180
- Change in interest-bearing - 441 166 226
liabilities
- Dividend - - 75 - 75
Cash flow from financing activities - 441 271 331

Cash flow for the period 3 76 86

Change in shareholders' equity
SEK m
9/30/2001 9/30/2000

Amount at start of year 820 368
Changed accounting 35 29
principle1)
New issue - 553
Dividend - -65
Convertibles 10 -
Translation difference 14 -1
Income for the period 257 0
Amount at end of period 1,136 884
1) A change of accounting principles to RR9 has been made as from
January 1, 2001. Reported information for the preceding year has been
calculated to show comparability. The reason for this
accounting method is the new Group structure that was established in the
preceding year.


Key ratios and other data 9/30/2001 9/30/2000 12/31/2000Operating margin (%) 2.0% 0.5% 0.4%Marginal after financial items 1.7% 0.1% -(%)Equity ratio (%) 17.2% 14.7% 13.7%Debt-equity ratio, net (multiple) 1.5 2.1 2.1Debt-equity ratio (multiple) 2.00 2.75 2.86Interest coverage (multiple) 4.8 1.2 1.0Capital employed (SEK m) 3,787 3,980 4,003Return on capital employed (%) 13.5% 4.5% 3.8%Return on shareholders' equity 22.1% 0 Neg.(%)Capital expenditures (SEK m) 382 661 579Earnings per share (SEK) 4.83 0.0 - 0.64Earnings per share after 4.76 - - 0.64dilution, (SEK)Number of shares outstanding 53,229,028 53,229,028 53,229,028Number of full-year employees 8,455