Axfood: Our best quarter ever

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Axfood released their interim report today. A late Easter together with efficiency improvements led to a record report. Axfood’s best ever.

The CEO Anders Strålman notes in a commentary that the result for Axfood’s second quarter was the best ever and the turnover was stable despite a weaker market with low inflation.
“The good profitability is mainly due to well-run stores with attractive customer offerings and improving the efficiency of logistics operations,” says Strålman.
Willys once again reported good results despite a subdued grocery market with high competition. Sales amounted to 5,374 million SEK (5,174), an increase of 3.9 percent over the previous year. Like-for-like sales increased 1.2 percent.
“The stable sales were positively impacted by Easter and a good midsummer but was offset by worse weather in the spring when the strong barbecue season hasn’t started.
Willys’ net sales in January-June amounted to 10,315 MSEK (10,093), an increase of 2.2 percent over the previous year. Like-for-like sales decreased 0.8 percent.
“Our focus forward is on further increasing sales with stronger offerings, including the further development of the digital customer program Willys + that currently have over 1.5 million customers”, Strålman comments.
“Hemköp continued to show strong sales growth and strong profitability, particularly in the important Stockholm region. Modernized and more inspiring stores, with a wide selection of fresh produce and appealing offers, has contributed to this positive development. ”
The total turnover in Hemköp was affected by fewer stores compared to the previous year and therefore decreased by 2.0 percent. The group-owned stores increased by 2.6 per cent during the period. Franchise stores sales posted an increase of 0.3 percent. But so far in 2014, sales in company-owned stores decreased by 3.0 percent and franchise stores decreased by 0.6 per cent.
“To attract even more customers and ensure good sales growth in the future, more stores should revamp in the coming quarters.”
Axfood Närlivs once again delivered a good result.
“It is primarily in Snabbgross that growth has been very good as a result of improved offers and more customers. But sales in the convenience stores has been weaker because of poor weather conditions over the previous year. ”
Dagab improved its performance significantly during the quarter. After an intense period of change the business efficiency has increased. During the same period last year Dagab implemented a new ERP system in one of the largest stocks which then resulted in increased costs.
Axfood Group’s consolidated wholesale and retail sales for the second quarter amounted to 9,804 MSEK (9,557), an increase of 2.6 percent. For the first half of the year, the increase is 1.3 percent.
Axfood Group’s retail sales (in its own stores and franchise units) totalled 8,246 million (8,071), an increase of 2.2 percent (0.8 percent for the first six months).
Axfood-owned stores rose in the second quarter by 2.6 percent and sales like-for-like increased 1.5 percent. For the first half of the year, the increase is 1.1 percent, while comparable stores decreased by 0.3 per cent.
Sales of private label products in June amounted to 24.8 percent (24.8). In the lead are Willys Hemma by 30.0 percent.
A new Willys-store and two new Willys Hemma stores opened in the first half. Willys had at end of period 137 Willys stores and 49 Willys Hemma stores.