axfood q4 2010
DESCRIPTION
Axfood Q4 2010 presentationTRANSCRIPT
1
Axfood AB
Jan – Dec, 2010
2
Objectives and outcome 2010
Dividend to shareholdersof at least 50% of profit after tax
Profitable growth
Operating profit at leastin level with 2009
Objectives 2010
The board proposesdividend of SEK 12 per share - 73% of profit after tax
Sales growth +5.8%
Operating profit +7.2%
Outcome
3
Willys January - December 2010
• Strong results and stable sales development
• Increased market share– Growing number of stores– Improved shopping experience– Right price and product mix
4
Hemköp January - December 2010
• Positive result and like for like sales– Successful marketing strategy
• New store in Stockholm City
• EBIT margin 0.9%
• Targeting EBIT margin of 2% 2011
5
PrisXtra January - December 2010
• Unsatisfying development
• Two stores affected by major road work
• Result affected by one time cost of SEK 14 m
6
Axfood Närlivs January - December 2010
• Increased sales and market share– New agreements
• EBIT margin in line with expectations
7
Dagab January - December 2010
• Strong service level
• Good cost control
• Satisfying cooperation with the Vi-stores
8
Market trends 2011
• Continued tough competition
• Price conscious customers
• Average 2-3 % food price inflation
• Decent outlook for Swedish economy
9
Offensive investment strategy 2011
• Approximately 15 new stores
• Modernization of about 40 stores
• Continued implementation of new business system
10
Strategy for profitable growth
• Optimize store operations
• Stimulate sales growth
• Good cost control and efficiency
• Increased privat label share
11
Axfood´s goal for 2011
To achieve an operating profit at least at the same level as 2010
12
Financial overview
Jan – Dec, 2010
13
Axfood AB January - December 2010
• Best result ever
• Good sales development
-
+7.2%
+5.8%
Change
3.5%3.5%Operating margin
1,1281,209 Operating profit
32,37834,260Net sales
20092010Group , SEK m
14
Willys January - December 2010
4.2%4.1%Operating margin
20092010
+5.8%
Sales Operating profit
-10 -09
17,58918,613
-10 -09
772 731
+5.6%
15
Hemköp January - December 2010
0.5%0.9%Operating margin
20092010
Sales Operating profit
-10 -09
5,335 4,978
-10 -09
2845
+60.7%
16
PrisXtra January - December 2010
-
-
- 7.0%
Change
0.9%-0.8%Operating margin
6-5Operating profit
685637 Net sales
20092010PrisXtra, SEK m
• Decrease in sales for two stores due to major road work
• Result affected by one time cost of SEK 14 m
17
Axfood Närlivs January - December 2010
-
- 14.4%
+ 4.2%
Change
2.4%1.9%Operating margin
132113Operating profit
5,6115,847 Net sales
20092010Axfood Närlivs, SEK m
• Good sales developement– New agreements
18
Dagab January - December 2010
-
+ 28.6%
+ 6.9%
Change
0.6%0.7%Operating margin
147189 Operating profit
24,05225,701 Net sales
20092010Dagab, SEK m
• Stable development
• Good cost control and efficiency
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Other January - December 2010
• Sales: 204 Mkr (174)
• Operating profit: 95 Mkr (84)
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Key ratios January - December 2010
• Balance sheet, total: SEK 7,664 m (7,173)
• Cash flow operating activity: SEK 1,365 m (1,558)
• Capex: SEK 862 m (633)
• Investment plan 2011: SEK 900 - 1,000 m
21
Financial targets & dividend policy
• Axfood's goal for 2011 is to achieve an operating profit at least at the same level as in 2010
• Equity ratio of at least 25%
• Shareholder dividend of at least 50% of profit for the year after tax
• Long term target for operating margin: 4%
22
Summary
• Best result ever
• Profitable growth
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Time for questions!