Growth

Axfood will grow faster than the market. In 2022, Axfood’s retail sales increased by 11.9% (1.9), while growth for the market was 5.7% (1.3), according to the Swedish Food Retailers Federation and HUI Research.

With various strong concepts and strong market positions, Axfood has grown faster than the market for several years, both in physical stores and in e-commerce. This trend accelerated in 2022, particularly for Willys, and Axfood grew more than twice as much as the market.

Operating margin

The operating margin will be at least 4.5% over the long term. The operating margin in 2022 was 4.2% (4.7).

At the end of 2021, the profitability target was raised from the previous level
of a long-term operating margin of a minimum of 4.0%. This was a result of
the investments that are now being made in logistics, together with the
development in the store chains, create favourable conditions for increased profitability over time.

Equity ratio

The equity ratio is to amount to at least 20% at year-end. As of 31 December 2022, the equity ratio was 24.1% (21.8).

Axfood has a solid balance sheet, and the business model generates stable
cash flow. The aim is to maintain a strong financial position to create the scope and flexibility to make investments that will lead to long-term benefits
for the Group. In 2022, the equity ratio was positively impacted by the completed rights issue of SEK 1.5 bn.