Stockholm / SE. (axf) Sweden’s Axfood AB delivered a solid first quarter with growth despite high comparison figures as well as higher earnings and improved profitability. The Willys chain and Hemköp’s franchise stores continued to grow more than the market, and Dagab once again showed impressive productivity. At the same time, there is continued focus on developing the business and large steps have been taken in the area of sustainability.
Chief Executive’s Commentary
President and CEO Klas Balkow said: «Axfood had a solid start to the new year, but for understandable reasons the 2.4 percent growth in store sales was considerably lower than during prior quarters. After more than a year into the pandemic, we have begun to meet high comparison figures. In addition to a negative calendar effect, this quarter is compared with a first quarter a year ago that was dramatically affected by hoarding. Our online B2C sales continue to experience sharp growth and were up a full 139 percent in the quarter. We have a lot happening in all parts of the Axfood family to develop our business for the future and can today announce that we will be moving our fruit and vegetable warehouse from Helsingborg to a new, larger and more efficient warehouse in Landskrona with good opportunities for future expansion and automation.»
First quarter summary
- Consolidated net sales totalled SEK 13,203 million (13,067), an increase of 1.0 percent.
- Store sales for the Axfood Group totalled SEK 11,757 million (11,483), an increase of 2.4 percent.
- Operating profit totalled SEK 565 million (544), an increase of 3.9 percent. The operating margin was 4.3 percent (4.2 percent).
- Net profit for the period was SEK 430 million (402), and earnings per share before dilution were SEK 2.16 (1.93).
- The Annual General Meeting on 24 March resolved in favour of a shareholder dividend of SEK 7.50 (7.25) per share. The dividend amount is being divided into two payments of SEK 3.75 each in March and September, respectively.
- The quarter was characterized by the ongoing Covid-19 pandemic and compares with prior year’s hoarding effects.
Significant events after the balance sheet date
- To further develop and improve efficiency in the logistics operations and handle future volume growth, an agreement was signed for a new, larger nationwide warehouse for fruits and vegetables in Landskrona, which will replace the current fruit and vegetable warehouse in Helsingborg.
- Axfood’s Board of Directors has decided that the company will repurchase a maximum of 310,000 shares in connection with the long-term incentive programme LTIP 2021.
For additional information please read the company’s PDF file below (665 KB).
20210422-AXFOOD-Q1-2021.