Three reasons to invest in Axfood
Axfood is one of the leading players in food retail in Sweden. A broad presence, strong concepts and brands, and efficiency through collaboration create the conditions for long-term profitable growth.
1. Strong store concepts with leading positions in attractive market segments
Axfood operates in the food retail sector in Sweden, a growing and non-cyclical market largely driven by population growth and inflation. The Group has a broad presence in all segments through strong concepts and brands as well as attractive store locations. Changing and varying customer behaviours are met through a high rate of expansion, a focus on price value in physical stores and in e-commerce, and continuous development of the customer offering. Being a leader in sustainability and health is a strategic priority that is integrated into all aspects of the operations. The Group’s aim is to grow faster than the market with a long-term operating margin of at least 4.5%.
2. Efficiency and economies of scale through close collaboration
Axfood’s operating model – with a high share of Group-owned stores combined with retailer owned stores and an integrated value chain – is unique in Swedish food retail. Economies of scale and cost efficiency are achieved through close collaboration between the Group companies and the central support functions. The purchasing and logistics company Dagab creates the conditions for price value, quality and sustainability. Along with increased capacity and productivity, efficient and highly automated logistics lay the foundation for profitable growth and a competitive offering. Axfood’s IT company plays a central role in the Group’s digital development, automation and data-driven approach to meeting current and future needs.
3. Strong financial position and stable cash flows
Axfood’s strategy is to have a strong financial position to provide the scope to make long term business decisions. Its operations generate stable cash flows, with efficient management of working capital and capital employed. According to the dividend policy, the shareholder dividend is to be at least 50% of profit after tax and is to be paid out on two occasions. During the last five years, the dividend yield has averaged just over 3% on an annual basis. Axfood’s gearing is low, and excluding the accounting effects of IFRS 16, the Group’s net debt divided by EBITDA amounted to 0.4 at year-end 2025.
