With positive contributions from all businesses and an outstanding performance by Willys,
President and CEO
"We operate in a time with high inflation and changing market dynamics. We know that many of our customers are in a challenging situation, and we are doing everything we can to make sure that our offering is affordable and competitive. As customers find themselves with less money in their wallets, value for money becomes more important, and it is clear that many people are searching for discounted products and campaigns.
We reported substantial sales growth in the third quarter, clearly strengthening our position and gaining market share, which led to a positive earnings development calculated in SEK. Growth was particularly strong for Willys, whose business concept of offering
However, certain factors impacted earnings negatively during the quarter. The rapid pace of price increases from suppliers has not yet been fully reflected in consumer prices. We are also noting a higher share of campaign products, and significant supply chain disruptions has led to increased costs and caused our delivery reliability to remain relatively low.
Overall, we are well positioned and have the ability to manage the challenges with which we are presented. With our distinctive concepts, we cater to consumers' various preferences, and a rapid pace of development across all areas of the Group is further strengthening our competitiveness and bringing us closer to our vision of being the leading company within affordable, good and sustainable food."
Third quarter summary
- Net sales totalled
SEK 18,674 m (13,723), an increase of 36.1% including the acquired Bergendahls Food. -
Retail sales totalled
SEK 14,026 m (12,149), an increase of 15.5%. -
Operating profit amounted to
SEK 975 m (793) including items affecting comparability ofSEK -40 m (-18). The operating margin was 5.2% (5.8). -
Adjusted operating profit amounted to
SEK 1,015 m (811), an increase of 25.2%. The adjusted operating margin was 5.4% (5.9). -
Net profit for the period was
SEK 745 m (601) and earnings per share before dilution amounted toSEK 3.40 (2.90). -
In September, a dividend of
SEK 3.75 per share was paid out, the second part of the dividend to shareholders totallingSEK 7.75 (7.50) per share. Axfood's holding in Mathem was revalued atSEK 206 m, a decline ofSEK 635 m, which is in line with the decline in valuation for comparable companies.
Summary January-September
- Net sales totalled
SEK 53,735 m (40,829), an increase of 31.6% including the acquired Bergendahls Food. -
Retail sales totalled
SEK 40,541 m (36,939), an increase of 9.7%. -
Operating profit amounted to
SEK 2,599 m (1,965) including items affecting comparability ofSEK 103 m (-72). The operating margin was 4.8% (4.8). -
Adjusted operating profit amounted to
SEK 2,496 m (2,036), an increase of 22.6%. The adjusted operating margin was 4.6% (5.0). -
Net profit for the period was
SEK 2,017 m (1,486) and earnings per share before dilution amounted toSEK 9.43 (7.30).
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The information herein is such that
This document is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern.
https://news.cision.com/axfood/r/substantial-growth-and-increased-market-share,c3651592
https://mb.cision.com/Main/1306/3651592/1641045.pdf
https://mb.cision.com/Public/1306/3651592/afb62d785d285f67.pdf
https://news.cision.com/axfood/i/klasbalkow-axfood-foto-magnus-fond,c3103467
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