axfood q3 2011 presentation
DESCRIPTION
Axfood q3 2011 presentationTRANSCRIPT
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Axfood
July – September, 2011
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Axfood July – September 2011
• Stable sales growth: SEK 8,735 m (8,582), + 1.8%
• Good earnings: SEK 370 m (364), +1.6%
• Operating margin: 4.2% (4.2)
• Good efficiency and cost control
• Uncertainty in the market environment
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Hemköp July – September 2011
• Strengthened result and positive like for like sales
• Conversion of Vi-stores to Hemköp franchise started– 17 stores are so far converted– Around 50 stores in total will be
converted
• Target 2011: 2% EBIT margin
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Willys July – September 2011
• Stable development and good operating margin
• High pace of store modernization
• Like for like sales affected by– Weak growth for stores that are
still not modernized– New competition
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PrisXtra July – September 2011
• Result in line with plan
• Unsatisfying sales development– Two stores are affected by major
road work– Strategic locations in the future
• Target 2011: Positive operating profit
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Axfood Närlivs July – September 2011
• Good sales growth in all areas– New agreements– Good development in e-commerce
• New agreement with SvenskaStatoil– Supply of newsstand and food
retail products from 1 January 2012
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Dagab July – September 2011
• Stable performance– Cost control and efficiency– Good service level, 97.0%
• Extensive environmental programme continued
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Market trends 2011
• Uncertain market development
• Competition remains high
• Price conscious customers
• Increased interest for private label
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Strategy for profitable growth 2011
• Stimulate sales growth
• Cost control and efficiency
• High level of establishments and modernization of stores
• Increase private label share
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Axfood’s goal 2011
To achieve an operating profit at least at the same level as in 2010
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Financial Overview
July – September, 2011
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Axfood July – September 2011
• Favourable earnings
• Good cost control
Axfood group, SEK m 2011 2010 Change
Net sales 8,735 8,582 + 1.8%
Operating profit 370 364 + 1.6%
Operating margin 4.2% 4.2% -
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Willys July – September 2011
Operating margin
4.5%
Sales
-10 -11
4,6604,706
Operating profit
-10 -11
214 212
• Stable earnings
• Like-for-like sales: -1.3%
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Hemköp July – September 2011
Operating margin
+4.1%Operating margin
3.0%
Operating profit
-10 -11
11
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Sales
-10 -11
1,164 1,143
• Improved profitability
• Like-for-like sales: +0.6%
• Target 2011: 2% EBIT margin
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PrisXtra July – September 2011
• Result according to plan
• Unsatisfying sales development
-
-
- 14.0%
Change
0.7%- 0.8%Operating margin
1-1 Operating profit
143123Net sales
20102011PrisXtra, SEK m
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Axfood Närlivs July – September 2011
• Good sales growth in all areas– New agreements– Positive development in e-commerce
-
+ 2.3%
+ 9.1%
Change
2.7%2.6%Operating margin
4344 Operating profit
1,5711,714Net sales
20102011Axfood Närlivs, SEK m
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Dagab July – September 2011
• Stable development– Good cost control and efficiency
-
- 3.4%
+ 0.8%
Change
0.9%0.9%Operating margin
5856 Operating profit
6,3796,427 Net sales
20102011Dagab, SEK m
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Other July – September 2011
• Sales: SEK 1,038 m (993)
• Operating profit: SEK 25 m (37)– Amortization of new business
system SEK 10 m (4)
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Key ratios January – September 2011
• Balance sheet, total: SEK 7,911 m (7,367)
• Cash flow operating activity: SEK 1,004 m (1,037)
• Capex: SEK 696 m (592)
• Investment plan 2011: SEK 900 – 1 000 m (862)– Same level is expected for 2012
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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%
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Summary
• Good result– Cost control and efficiency
• Uncertainty in the market environment
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