Axfood

President and CEO Simone Margulies comments on the interim report for the first quarter 2025:

"In the first quarter we increased our retail sales by 15.7%, driven by a positive trend in customer traffic and higher volumes. We continued to clearly gain market share also excluding the acquisition of City Gross, with growth of 3.0%. Willys is Sweden's most recommended grocery chain and holds a unique market position. Willys recorded growth of 3.0% in the first quarter with positive trends in both customer traffic and loyalty. The discount segment has been the market's fastest growing segment for a long time, with a clear preference shown among younger consumers and families with children. We see considerable potential to continue expanding the chain, adding more stores at a rapid rate. With an attractive offering in the traditional grocery market segment, Hemköp also performed well in the first quarter with growth of 3.1% and particularly strong growth in like-for-like sales. In the restaurant and café segment, Snabbgross continued to deliver strong growth of 5.2% despite a continued weak market.

With the acquisition of City Gross, Axfood has established a presence in the attractive hypermarket segment. City Gross has faced a number of challenging years, and the trend in the first quarter was also weak with growth of -3.8%. As previously communicated, this year will be a transitional year, and the initiatives that we are now implementing will take time to yield results. We have a clear plan in place to strengthen the store chain, and given our experience, expertise and capacity, we see considerable opportunities to turn City Gross into a profitable business at some point in the second half of 2026.

We reached a significant milestone in our logistics operations during the quarter when e-commerce flows were implemented at the new automated logistics centre in Bålsta. The logistics centre is now fully operational for both stores and e-commerce in all temperature zones. The facility's productivity is showing a gradual and clear improvement, and we expect to realise efficiency improvements of SEK 200-300 million, at an annualised rate, from the second quarter. As previously announced, this will contribute to a continued lower cost level in logistics and make Axfood more competitive.

With the logistics centre in Bålsta, we have secured long-term capacity and efficiency in the flow of goods in central and northern Sweden. We are now planning for the next steps in the development of our logistics structure to create additional capacity and efficiency in the southern parts of Sweden from the year 2030 and onwards. The plan is to establish a new automated logistics centre in the Gothenburg region that first and foremost will replace our existing warehouse in Backa. At the same time, we are looking into how to handle volume growth for the other warehouses in the south of Sweden. In the coming quarters, we will provide more details around the plans and initiate negotiations with relevant parties and stakeholders.

As part of our continuous work to increase productivity and cost efficiency, in the quarter we also initiated work on streamlining our support functions to further strengthen our competitiveness."

First quarter summary

• Net sales increased 3.9% to SEK 21,040 m (20,252).
• Retail sales increased 15.7% to SEK 18,829 m (16,281). Excluding City Gross, retail sales increased 3.0%.
• Operating profit amounted to SEK 719 m (817) including items affecting comparability of SEK -38 m (-). The operating margin was 3.4% (4.0).
• Adjusted operating profit amounted to SEK 757 m (817) and the adjusted operating margin was 3.6% (4.0).

• Net profit for the period amounted to SEK 453 m (560) and earnings per share before dilution to SEK 2.09 (2.60).
• The Annual General Meeting (AGM) on March 19 resolved on a dividend to shareholders of SEK 8.75 (8.50) per share. The dividend amount is divided into two payments of SEK 4.50 and SEK 4.25, with the first payment made in March and the second payment to be made in September. Caroline Berg was elected as the new Chairman, and Björn Annwall and Kristofer Tonström as new Board members. The Board also resolved on the repurchase of a maximum of 385,000 shares linked to the long-term share-based incentive program LTIP 2025, which was resolved on by the AGM.
• Work has been initiated to plan for the next steps in the development of Axfood's logistics structure to create conditions for growth, higher efficiency and increased capacity from the year 2030 and onwards. This work comprises the southern parts of Sweden, and the plan is to establish a new automated logistics centre in the Gothenburg region. Plans are in the early stages and more details will be provided in the coming quarters.

 
Axfood will present the interim report for the first quarter 2025 in a webcast at 9:30 a.m. (CET) today, 24 April 2025. The report will be presented by Simone Margulies, President and CEO, and Anders Lexmon, CFO. You can find a link to the webcast at axfood.com. A link to register to participate via conference call is also available at axfood.com. Upon registration, a telephone number and conference ID for the conference call will be provided.

 
For further information, please contact:
Alexander Bergendorf, Head of Investor Relations, Axfood AB, tel +46 73 049 18 44
 

The information herein is such that Axfood AB (publ) is required to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person listed above, at 7:00 a.m. CET on 24 April 2025.

  
This document is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern.