Axfood AB: announces solid Q3-2021 with good profitability

Stockholm / SE. (axf) Sweden’s Axfood AB reports a solid third quarter with good profitability despite high comparison figures. A high tempo continues to be maintained with significant focus on investments for the future, and a few weeks ago history was made in the Swedish food retail sector with the completion of the acquisition of Bergendahls Food and partnership with City Gross.

Chief Executive’s Commentary

President and CEO Klas Balkow’s comments on the interim report for the third quarter 2021: «We have closed an eventful quarter with a high pace of development. We delivered high profitability and increased our earnings adjusted for costs related to the Bergendahls acquisition. Meanwhile, it’s an exciting time with high activity in all parts of our Group. This past summer we communicated new and large investments in optimizing our logistics platform. In addition, we have received clearance from the Swedish Competition Authority and completed our acquisition of Bergendahls. The acquisition creates synergies and strengthens our long term position in the market through higher efficiency, which also benefits wholesale customers and consumers. The integration of these businesses is now underway and it feels great to welcome new colleagues to the Axfood family.»

Third quarter summary

  • Net sales totalled SEK 13,723 m (13,426), an increase of 2.2 percent.
  • Store sales for the Axfood Group totalled SEK 11,589 m (11,503), an increase of 0.7 percent.
  • Operating profit including items affecting comparability of SEK 18 m for the integration with Bergendahls totalled SEK 793 m (796). The operating margin was 5.8 percent (5.9 percent). Operating profit excluding items affecting comparability was SEK 811 m (796), an increase of 1.9 percent. The operating margin excluding items affecting comparability was 5.9 percent (5.9 percent).
  • Net profit for the period was SEK 601 m (605), and earnings per share before dilution were SEK 2.93 (2.95).
  • In September a dividend of SEK 3.75 per share was paid out to the shareholders – the second half of the total shareholder dividend of SEK 7.50 (7.25) per share.

Summary January-September

  • Net sales totalled SEK 40,829 m (40,062), an increase of 1.9 percent.
  • Store sales for the Axfood Group totalled SEK 35,398 m (34,915), an increase of 1.4 percent.
  • Operating profit was SEK 1,965 m (1,944). The operating margin was 4.8 percent (4.9 percent). Operating profit excluding items affecting comparability was SEK 2,036 m (1,944), an increase of 4.8 percent. The operating margin excluding items affecting comparability was 5.0 percent (4.9 percent).
  • Net profit for the period was 1,486 m (1,454), and earnings per share before dilution were SEK 7.36 (7.10).

Significant events after the balance sheet date

  • On 1 October Axfood completed the acquisition of the wholesale business Bergendahl Food AB and of the minority stake of 9.9 percent of the shares in City Gross Sverige AB.
  • In October Axfood received a payout of SEK 110 m from Fora/AFA employer-financed insurances based on previous premium payments, which will result in a positive effect on the operating profit in the fourth quarter 2021.

For additional information please read the company’s PDF file below (630 KB).

20211023-AXFOOD-Q3-2021
.