Axfood AB reported its financial results for 2009, with the following key highlights:
- Consolidated sales increased 2.3% to SEK 32.4 billion while operating profit improved 4.7% to SEK 1.1 billion.
- All business units achieved positive operating margins, with Willys continuing its good performance and Dagab improving efficiency. Hemköp reported an operating profit after restructuring costs.
- The company achieved its objectives for the year, including an operating profit over SEK 1 billion and maintaining an equity ratio over 25%.
- For 2010, Axfood aims to achieve a similar operating profit through initiatives like stimulating sales, increasing efficiency and cost control, and developing
2. Axfood AB 1 January – 31 December 2009
• Consolidated sales : SEK 32,378 m
(31,663), an increase of 2.3%
• Good operating profit: SEK 1,128 m
(1,077)
• Operating margin: 3.5% (3.4)
• Positive operating margin
in all operations
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3. Objectives achieved 2009
Objective 2009 Outcome
• Achieve an operating profit • Operating profit SEK 1,128 m
of at least SEK 1 billion
• Equity ratio of at least 25% • Equity ratio target reached every
quarter
• Shareholder dividend of at
least 50% of profit for the • For 2009 the board of Directors
year after tax proposes a dividend of SEK 10,
66% of profit after tax
• Profitability for Hemköp • Operating profit SEK 28 m
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4. Hemköp 1 January – 31 December 2009
• Positive result despite restructuring
costs of SEK 46 m
– Improved cost control
– Increased gross profit
– Closed or converted eight fully
owned stores
• 2010: Focus on improving sales and
profitability
– Higher pace of marketing activities
– New price strategy
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5. Willys 1 January – 31 December 2009
• Continued good performance
– Stable earnings and sales
– Increased number of customers
• Leading position in soft discount
– Attractive mix between price &
assortment
• Development of concept according to
plan, so far 28 stores
• 2010: Sales growth and increase
number of stores
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6. PrisXtra 1 January – 31 December 2009
• Unsatisfying sales and profitability
• Decrease in sales for two stores due
to major road work
• 2010: Focus on store performance
and increased profitability
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7. Axfood Närlivs 1 January – 31 December 2009
• Good profitability in all parts despite fierce
competition
• Cash & Carry showed very strong
performance
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8. Dagab 1 January – 31 December 2009
• Improved efficiency and good
cost control
• Excellent service level
• Implementation of Autoorder
continued as planned
• Deliver to Vi- stores since
November
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9. New IT platform
• New business system to better
support all of Axfoods strategies
• Project will run over five years
• Total investment of SEK 500 - 600 m
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10. Market trends 2010
• Continued strong price competition
• Increased price consciousness
among customers
• Food inflation at low levels
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11. Unchanged strategy for profitable growth
• Stimulate sales
• Increase efficiency
• Continued good cost control
• Develop and improve the various
concepts
• Refine price & product range
• Optimize store operations
• Continued private label developement
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12. Axfood´s goal for 2010
Is to achieve an operating profit
in level with 2009
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13. Financial
Performance
1 January – 31 December 2009
14. Axfood AB 1 January – 31 December 2009
• Good profitability
• Strong cost control
• Stable sales
Group, SEK m 2009 2008 Change
Net sales 32,378 31,663 +2.3 %
Operating profit 1,128 1,077 + 4.7%
Operating margin 3.5% 3.4% -
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17. PrisXtra 1 January – 31 December 2009
• Focus on store performance and
improving customer offerings
SEK m 2009 2008 Change
Net sales 725 653 -
Operating profit 6 9 -
Operating margin 0.8% 1.4% -
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18. Axfood Närlivs 1 January – 31 December 2009
• Good development in distributed sales
• Stable results
SEK m 2009 2008 Change
Net sales 5,571 5,662 -1.6%
Operating profit 132 110 + 20.0%
Operating margin 2.4% 1.9% -
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19. Dagab 1 January – 31 December 2009
• Excellent service level
• Good development in distributed
sales
SEK m
2009 2008 Change
Net sales 24,052 23,424 + 2.7%
Operating profit 147 138 + 6.5%
Operating margin 0.6% 0.6% -
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20. Other 1 January – 31 December 2009
• Sales: SEK 3,364 m (1,981)
• Operating profit: SEK 84 m (98)
• Increased internal sales are driven by fruit
& vegetables and centrally packed meat
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23. Financial targets & dividend policy
• Axfood´s goal for 2010 is to
achieve an operating profit in
level with 2009
• Equity ratio of at least 25%
• Shareholder dividend of at least
50% of profit for the year after tax
• For 2009 the board of Directors
proposes a dividend of SEK10 (8)
• Long term target for operating
margin: 4%
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24. Summary financial performance
• Stable sales and strong result
• Efficiency and good cost control
• Strong balance sheet & cash flow
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