Axfood Q2 2011 presentation eng
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Transcript of Axfood Q2 2011 presentation eng
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Axfood April – June 2011
• Stable sales growth : SEK 8,889 m (8,583), + 3.6%
• Strong result: SEK 317 m (279), +13.6%
• Operating margin: 3.6% (3.3)
• Continued positive result for all operations
• Generally week Swedish food retail market
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Willys April – June 2011
• Good profitability and stable sales development
• High pace of store modernization
• Like for like sales affected by– Week food retail market– Strong competition
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Hemköp April – June 2011
• Good result and like for like sales
• Expansion of approximately 50 stores 2011– Franchise agreement with
individual Vi retailers
• Target 2011: 2% EBIT margin
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PrisXtra April – June 2011
• Positive operating profit
• Unsatisfying sales development– Two stores are affected by major
road work– Strategic locations in the future
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Axfood Närlivs April – June 2011
• Good sales in all areas– New agreements– Easter holiday sales– Favourable weather
• Renewed agreement with OKQ8– Supply of newsstand and food
retail products
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Dagab April – June 2011
• Favourable earnings– Cost control and efficiency– Good service level, 96.8%
• Successful sustainability work– Received two recognitions for its
active environmental work
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Market trends 2011
• Uncertain market development
• Competition remains high
• Price conscious customers
• Average food price inflation of around 2%
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Strategy for profitable growth 2011
• High level of establishments and modernization of stores
• Good cost control and efficiency
• Stimulate sales growth and increase private label share
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Axfood April – June 2011
• Continued positive result in all operations
Axfood group, SEK m 2011 2010 Change
Net sales 8,889 8,583 + 3.6%
Operating profit 317 279 + 13.6%
Operating margin 3.6% 3.3% -
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Willys April – June 2011
Operating margin
4.3%
Sales
-10 -11
4,6654,805
Operating profit
-10 -11
195 205
• Good result and stable development
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Hemköp April – June 2011
Operating margin
+4.1%Operating margin
1.9%
Operating profit
-10 -11
10
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Sales
-10 -11
1,224 1,184
• Continued positive result and like for like sales
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PrisXtra April – June 2011
• Positive result
• Unsatisfying sales development
-
-
- 11.8%
Change
- 1.9%2.8%Operating margin
- 34 Operating profit
161142Net sales
20102011PrisXtra, SEK m
1616
Axfood Närlivs April – June 2011
• Good sales growth– New agreements– Easter sales– Favourable weather
-
+ 5.9%
+ 13.4%
Change
2.3%2.1%Operating margin
3436 Operating profit
1,4911,691Net sales
20102011Axfood Närlivs, SEK m
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Dagab April – June 2011
• Good result development– Cost control and efficiency
-
+ 20.6%
+ 3.1%
Change
0.5%0.6%Operating margin
3441 Operating profit
6,4226,623 Net sales
20102011Dagab, SEK m
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Other April – June 2011
• Sales: SEK 1 082 m (1 026)
• Operating profit: SEK 8 m (9)– Amortization of new business
system SEK 8 m (6)
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Key ratios January – June 2011
• Balance sheet, total: SEK 7,975 m (7 556)
• Cash flow operating activity: SEK 638 m (708)
• Capex: SEK 488 m (454)
• Investment plan 2011: SEK 900 – 1 000 m (862)
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Financial targets & dividend policy
• Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010
• Equity ratio of at least 25%
• Shareholder dividend of at least 50% of profit for the year after tax
• Long term target for operating margin: 4%