Axfood AB: reports H1-2022 results in an exceptional time

Stockholm / SE. (axf) Sweden’s Axfood AB continues to grow significantly more than the market in an exceptional time with high food price inflation. The acquisition of Bergendahls Food, a strong quarter for Willys and a robust recovery for Eurocash and Snabbgross contributed to strong sales growth and higher earnings. President and CEO Klas Balkow’s comments on the interim report for the second quarter 2022:

«In recent months, we have approached nearly double-digit food price inflation. The trend we are seeing is a consequence of a number of external factors such as the Covid-19 pandemic, the war in Ukraine, sharp increases in electricity and fuel prices, shortages of raw materials and packaging, and disruptions in the transport sector. The world situation is affecting the entire supply chain, from primary production to our own operations.

«The extremely rapid pace of the price increases from our suppliers has not yet been reflected in consumer prices. Demand for campaign products has also increased, and continued high costs for electricity and fuel have had a negative impact. But thanks to our strong growth in physical stores, with Willys benefiting from the prevailing low-price trend and the return to cross-border shopping, as well as higher volumes from the acquired company Bergendahls Food, we once again delivered increased earnings this quarter. The divestment of Mat.se and effective cost control in our chains also contributed to the positive earnings trend.»

Second quarter summary

  • Net sales totalled SEK 18,468 million (13,903), an increase of 32.8 percent, including the acquired Bergendahls Food.
  • Retail sales totalled SEK 13,803 (12,583), an increase of 9.7 percent.
  • Operating profit amounted to SEK 789 million (607) and included items affecting comparability of SEK -39 million (-54). The operating margin was 4.3 percent (4.4).
  • Adjusted operating profit amounted to SEK 828 million (661), an increase of 25.3 percent. The adjusted operating margin was 4.5 percent (4.8).
  • Net profit for the period amounted to SEK 590 million (455) and earnings per share before dilution to SEK 2.75 (2.26).
  • A rights issue was completed with the support of the AGM’s authorisation and the Board of Directors’ decision. The rights issue was fully subscribed, and Axfood received SEK 1,499 million before issue costs.

First half of 2022 summary

  • Net sales totalled SEK 35,061 million (27,106), an increase of 29.3 percent, including the acquired Bergendahls Food.
  • Retail sales totalled SEK 26,514 million (24,790), an increase of 7.0 percent.
  • Operating profit amounted to SEK 1,623 million (1,172) and included SEK 143 million (-54), net, in items affecting comparability. The operating margin was 4.6 percent (4.3).
  • Adjusted operating profit amounted to SEK 1,480 million (1,225), an increase of 20.8 percent. The adjusted operating margin was 4.2 percent (4.5).
  • Net profit for the period amounted to SEK 1,272 million (885) and earnings per share before dilution to SEK 6.02 (4.40).

For additional information please read the Company’s PDF file below (490 KB):

20220716-AXFOOD-H1-2022
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