Sweden · Delayed Price · Currency is SEK Axfood AB Earnings Call Transcripts
Fiscal Year 2026
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Earnings and margins improved despite food price deflation and high comps, with strong performance from Hemköp and narrowed losses at City Gross. Investments in logistics, sustainability, and store concepts continue, while market competition and cost pressures remain high.
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Volume growth and improved profitability were achieved despite intense competition and global uncertainty. Operating profit and margins increased, with strong performances from Hemköp and ongoing improvements at City Gross, while Willys' growth was impacted by store closures and early VAT-related price cuts.
Fiscal Year 2025
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Delivered above-market growth, improved profitability, and continued market share gains across all chains. Investments in logistics, sustainability, and store expansion support long-term competitiveness, while the outlook includes increased CapEx and a higher dividend.
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Strong quarterly results with net sales up nearly 7% and operating profit exceeding SEK 1 billion, driven by volume growth and efficiency across all segments. City Gross turnaround is on track, and major investments in logistics and sustainability continue.
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Q2 saw strong sales and profit growth, outpacing the market, with Willys, Hemköp, and Snabbgross driving momentum. Efficiency gains, sustainability initiatives, and CityGross transformation continued, while adjusted operating margin reached 4.2%.
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Strong volume growth and market share gains drove a 4% rise in net sales, with Willys and Hemköp outperforming the market. City Gross posted losses but is undergoing a turnaround, while logistics efficiency gains are expected to boost results from Q2.
Fiscal Year 2024
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Strong sales and market share gains were achieved in 2024, driven by volume growth, e-commerce, and the City Gross acquisition. Margin pressure persisted due to competition and cost inflation, but investments and store expansion are planned for 2025, with a higher dividend proposed.
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Net sales grew 3% in Q3, with strong segment performance but declining operating profit due to price investments and cost inflation. Logistics transformation and the City Gross acquisition are key strategic focuses, with cost savings expected in 2025.
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Retail sales and e-commerce outpaced the market, but profit was pressured by logistics transition costs, operational disruptions, and a one-off payment system issue. Strategic investments and the City Gross acquisition position the group for future growth.
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Full ownership of City Gross for SEK 2.0 billion expands presence in the hypermarket segment, with integration and operational improvements targeted to restore profitability by 2026. The deal is expected to be earnings accretive and strengthen market competitiveness, pending regulatory approval.