Axfood’s sales up 6.9 %

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Axfood reports another record quarter – with an increase of the retail sales by 6.9 percent and 3.9 percent like-for-like.

But the recent acceleration is probably over now.

”We will encounter considerably tougher comparison figures for both sales and earnings,” comments CEO Anders Strålman.

Axfood’s interim report for the second quarter reveals that the consolidated sales for the period April–June totalled 10,478 MSEK (9,804), an increase of 6.9 percent. Retail sales for Group-owned stores increased by 6.3 percent during the period. Like-for-like sales increased by 3.9 percent during the period.

”The second quarter was yet another quarter of good sales performance, where Axfood continued to take market shares. We’ve had a good start to the year, with record earnings both for the second quarter and first half of the year. As we now move in to the second half of 2015, we will encounter considerably tougher comparison figures for both sales and earnings,” comments CEO Anders Strålman.

He says attractive customer offerings, well run stores and a greater number of customers visiting Axfood’s stores have contributed to the positive sales development. Effective logistics are also contributing to the strong performance. In terms of earnings, the quarter was Axfood’s best second quarter ever. All units made a positive contribution to this.

Net sales per operating segment
SEKm

Q2 2015

Q2 2014

Six months 2015

Six months 2014

Full year 2014

Willys

5,691

5,374

10,952

10,315

20,974

Hemköp

1,470

1,364

2,871

2,719

5,510

Axfood Närlivs

717

668

1,312

1,213

2,522

Axfood Sverige

10,058

8,948

19,323

17,025

34,951

Joint-Group1

168

169

334

340

679

Internal sales
Axfood Sverige

-7,468

-6,560

-14,435

-12,541

-25,509

Axfood Närlivs

-1

0

-2

-1

-3

Joint-Group

-157

-159

-311

-320

-640

Total

10,478

9,804

20,044

18,750

38,484

Willys sales was an increase of 5.9 percent compared with the same period a year ago. Like-for-like sales in- creased by 3.7 percent. Willys’ private label share was 28.8 percent as of June (27.2%).
”The focus going forward is on further growing sales with more compelling customer offerings, among other things through further development of the Willys+ digital customer programme. Willys will also continue to pursue an ambitious pace of establishment.”

Hemköp’s sales performance remained strong, both in total and for like-for-like stores. Sales for Group -owned stores had an increase of 7.8 percent. Like-for-like sales for Group-owned stores rose 4.9 percent during the quarter. Sales for franchise stores amounted had an increase of 2.5 percent, while like-for-like sales for franchise stores rose 3.2 percent.
Hemköp’s private label share was 21.0 percent (19.0%) as of June.

Also Axfood Närlivs had favourable sales growth, with higher market shares and favourable earnings, which can be credited primarily to improved customer offerings and a greater number of customers. Earnings for the corresponding period a year ago were tempered by costs for implementation of the new business system at Axfood Närlivs. Sales during the quarter had an increase of 7.3 percent.

”Consumers have begun to show cautious optimism on account of the low interest rates and the indefinite postponement of the amortization requirement for home mortgages.Our view is that the market conditions for the food retail sector will remain unchanged, with continued strong competition and food price inflation of approximately 1%–2%,even though price increases during the first half of the year were slightly higher.” comments Anders Strålman.