Financial targets
Axfood manages and continuously monitors the Group’s operations based on a set of strategic Group-wide targets. By maintaining a strong financial position and sustainable operations, scope and conditions are created for long-term profitable growth.
Growth
Axfood will grow faster than the market. In 2025, Axfood’s retail sales increased by 16.4% (6.8). Excluding City Gross, the increase was 5.9% (4.3), while market growth was 4.5% (4.1), according to the Swedish Food Retailers Federation and HUI Research.
With different concepts and strong positions in all segments, Axfood has grown faster than the market for many years. This development continued in 2025. The acquisition of City Gross contributed to the Group’s growth, but even excluding City Gross, Axfood’s growth was higher than the market’s.
Profitability
The operating margin will be at least 4.5% over the long term. The operating margin in 2025 was 4.0% (3.9).
The operating margin has been below the profitability target in the last few years as a result of strategic investments in base operations and the acquisition of City Gross. Over time, these investments – together with the development of the store chains – are expected to create increased profitability.
Financial position
The equity ratio is to amount to at least 20% at year-end. As of 31 December 2025, the equity ratio was 21.2% (20.9).
Axfood has a solid balance sheet, and the business model generates stable cash flow. The aim is to maintain a strong financial position to have the scope and flexibility to invest in long-term competitiveness. The equity ratio remained in line with the Group’s target in 2025, but has been impacted by the acquisition of City Gross, which was primarily financed through increased borrowing.
