President and CEO Klas Balkow’s comments on the third quarter 2018:
“Axfood had good growth during the third quarter, and we strengthened our position in the market. The warm, dry summer had both positive and negative effects on operations. Willys had very strong performance at the same time that Axfood Snabbgross was at the top with growth of more than 11%. For our logistics operations, the summer heat had a negative effect with extra costs that weighed down profitability. Despite this, Axfood posted its best quarterly operating profit since the Group was established.
“In addition I can reveal that Dagab has now embarked on the realization of its logistics vision by drawing up plans for a highly automated warehouse in Stockholm. The warehouse will fulfil orders both to stores and e-commerce customers and our ambition is to have the warehouse in operation by 2023.”
Third quarter summary
- Consolidated net sales amounted to SEK 12,050 m (11,578), an increase of 4.1%.
- Operating profit was SEK 620 m (604), an increase of 2.6%. The operating margin was 5.1% (5.2%).
- Net profit for the period was SEK 482 m (469), and earnings per share before dilution were SEK 2.24 (2.23).
Summary of January–September
- Consolidated net sales amounted to SEK 35,715 m (34,142), an increase of 4.6%.
- Operating profit was SEK 1,599 m (1,488), corresponding to an operating margin of 4.5% (4.4%).
- Net profit for the period was SEK 1,249 m (1,157), and earnings per share before dilution were SEK 5.87 (5.51).
No significant events have taken place after the balance sheet date.
Welcome to today’s web cast/conference call where President and CEO Klas Balkow together with CFO Anders Lexmon will present the third quarter of 2018. The presentation starts at 9:30 a.m. CET and can be followed via axfood.se or by phone:
Sweden: +46 8 566 426 91, UK: +44 203 0089 813, USA: +1 855 753 2236.
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Axfood aspires to be the leader in affordable, good and sustainable food. Our family of companies includes the store chains Willys and Hemköp as well as Tempo and Handlar’n. B2B sales are handled through Snabbgross, and our support company Dagab is responsible for the Group’s product development, purchasing and logistics. The Axfood family also includes Middagsfrid and Urban Deli as well as the partly owned companies Apohem, Eurocash, City Gross and Mathem. Together the Group has more than 13,000 employees and sales of approximately SEK 80 billion. Axfood has been listed on Nasdaq Stockholm since 1997, and the principal owner is Axel Johnson AB. Read more at axfood.com.