Logotype 2018 in brief

Shared passion for good and sustainable food

A successful 2018 with increased market shares and improved profitability

Remarkable growth for Willys and Axfood Snabbgross

First step in automated warehousing

CEO's message

"During 2018 we delivered on our strategic priorities. The assortment has been further developed, and our chains have strengthened their positions in the market. Our omnichannel experience is cohesive, and the digital customer interaction has been strengthened side-by-side the e-commerce rollout. Our first automated warehouse has been inaugurated, and we are working to further improve operational efficiency through greater digitalization."

Klas Balkow
President and CEO

Key figures

Net sales

48,085SEK m

Net sales, SEK m
50,00040,00030,00020,00010,000
0
38,484
41,247
43,355
45,968
48,085
20142015201620172018

Operating profit

2,025SEK m

Operating profit, SEK m
2.2521.751.51.2510.750.50.25
0
1,447
1,760
1,902
1,886
2,025
20142015201620172018

Operating margin

4.2%

Operating margin, %
54321
0
3.8
4.3
4.4
4.1
4.2
20142015201620172018

Proposed dividend per share

7.00SEK

Ordinary dividend, SEK
7654321
0
4.25
5.00
6.00
7.00
7.00
20142015201620172018

Carbon footprint

-78%Change vs. base year 2009

Carbon footprint – CO2 emissions
CO2
100,00080,00060,00040,00020,000
0
98,838
26,653
20,761
16,008
22,195
-73
-79
-84
-78
%
0-25-50-75
-100
20092015201620172018
CO2 emissions
%, Change vs. base year 2009

Gender equality

31%Share of women in management positions

Gender equality, share of women in management positions, %
3530252015105
0
26
30
32
30
31
20142015201620172018

Strategy

To be the leader in good and sustainable food, Axfood is pursuing a strategy consisting of growth-promoting priorities and efficiency enhancing areas. Added to this is a strong focus on our employees, who make sure that the business develops in accordance with the strategy.

Growth

Efficiency

Our people

Customer offering

Axfood will offer an attractive, effective and wide assortment that gives customers price value.

Customer meeting

Through our brands and food concepts we will meet our customers' varying needs – no matter where, when and how we meet our customers.

Expansion

We will grow in new and existing markets by establishing stores and developing new segments, categories and services.

Supply chain

We will be a driver of sustainable product supply with high efficiency and quality across the entire chain.

Work approach

We will develop an innovative, customer-oriented and dynamic organization in which efficiency and cost control are in focus.

Our people

We will attract, recruit and develop the industry’s best employees.

Culture and core values

Sustainability and community engagement

Good and sustainable food

Today’s customers are consious. They want products that are good for their health, but that are also made with care for animals and the people who make them.

Swedish
products

Axfood today has 1,046 Swedish-labelled products in its assortment, of which 356 are private label products. To support Swedish farmers, during the autumn Axfood promoted Swedish products in its stores, with highly visible signs showing where products are from.

Vegetarian
products

The offering of vegetarian products was widened during the year with a host of new and innovative items. Axfood’s own Garant brand launched 40 new vegetarian products during the year, including a vegan burger patty with a meaty texture that “bleeds” red beetroot juice.

Organic
products

Axfood’s sales of organic products have been on the rise for a number of years. In 2018, demand stabilized somewhat,with organic products accounting for 6.6% of sales. Within Axfood the number of organic items varies between 1,000 and 1,700 per food concept.

Animal
welfare

Axfood gives priority to responsibly produced meat – predominantly Swedish. Sweden’s farmers have a long tradition of good animal care with low use of antibiotics that results in healthy animals and safe foods. Meat in which antibiotics have been used to promote growth is not sold whatsoever in Axfood’s stores. Moreover, all meat in Axfood’s private label products is required to have third-party certification for animal welfare.

Segmental overview

Axfood is a leading food retail group in Sweden and a family of distinctive food concepts working in collaboration. Together these reach more than 4 million customers every week. Our meeting with the customer takes place in more than 300 Group-owned stores, online, and in some 900 collaborating stores.

Willys

Eurocash

59

Hemköp

Tempo

11

Axfood
Snabbgross



6

Dagab

Mat.se, Middagsfrid,
Apohem and Urban Deli

34

Share of Group operating profit, excluding joint-Group earnings.

Sweden's cheapest bag of groceries

The Willys segment comprises the discount chains Willys and Eurocash. Willys is Sweden’s leading discount chain offering a wide assortment in 200 stores. During 2018 Willys and Eurocash showed continued strong performance both in terms of sales and profitability.

Net sales, SEK m

27,066

Growth

6.5%

Operating margin

4.4%

Passion for sustainable food

Hemköp offers an attractively priced, wide assortment with a rich offering of fresh products. The chain aspires to stimulate customer’s passion for sustainable foods and help them find inviting meal solutions. The past year can be summed up with growth in line with the market, but slightly lower profitability than a year ago.

Net sales, SEK m

6,403

Growth

3.3%

Operating margin

3.5%

Sweden's best restaurant wholesaler

Axfood Snabbgross is the Group's restaurant wholesaler with a customer base of restaurants, fast food operators and cafés. At 24 Group-owned stores and online customers are offered personal service, accessibility and quality. The segment had growth of 9% in 2018, with stable profitability.

Net sales, SEK m

3,241

Growth

8.6%

Operating margin

3.7%

Efficient and innovative operation

The support company Dagab is responsible for the assortment, purchasing and logistics for all of Axfood's food concepts as well as for other business customers. Dagab posted growth in total sales by 3% in 2018. Profitability was level with the preceding year.

Net sales, SEK m

42,456

Growth

3.2%

Operating margin

1.6%

A better day where everyone can enjoy affordable, good and sustainable food.