Investors

Investment case

Historically favourable returns, profitable growth and a stable company with strong brands. There are many reasons to invest in Axfood.

 

Axfood has historically delivered a favourable total return. During the past five years the total return has been 184%. Our policy is to distribute at least 50% of profit after tax.

Clear strategy for creating profitable growth

Axfood is focused on profitable growth, creating opportunities for favourable growth in value over time. In 2017 Axfood plans to establish eleven new stores, offer e-commerce to consumers in some additional 20 cities, and integrate its two newly acquired companies mat.se and Eurocash.

The Group is working continuously with efficiency improvement and keeping costs down, with the goal to maintain an operating margin of 4%. By reducing energy consumption and focusing on energy efficiency we are lowering our costs and reducing our carbon footprint.

Stable company in a stable industry

The food retail market is relatively insensitive to fluctuations in the economy. Growth is driven by population growth and inflation. Axfood has stable operations and a strong financial position with solid key ratios and good cash flow, a high equity ratio, and a low level of debt. Swedish consumers’ preferences for product origins and quality are driving development toward a more sustainable industry. Sustainable products have a higher price point, and many customers who choose organic products have an average higher spend than the average. Sustainability and profitability go hand in hand.

Strong positions and brands

Through our store brands we are number two in Sweden’s food retail market. Willys is Sweden’s leading discount grocery chain, with 196 wholly owned stores. Hemköp and Axfood Närlivs (with Axfood Snabbgross) have strong positions in their respective segments. 

Being able to offer a compelling sustainable assortment is important for Axfood’s store chains. Consumers have a keen interest in organic products, certified products, and vegetable protein substitutes. Axfood’s Garant private label is associated with wholesome and good food, and has high brand awareness among consumers. Private label products as a share of net sales amounted to 28% in 2016.