Stockholm, Sweden – Axfood AB (publ) held its Q1 2024 Earnings Conference Call on April 25, 2024, with President and CEO Klas Balkow and CFO Anders Lexmon leading the discussion. During the call, Balkow highlighted the market overview, noting a 6% growth in the market with a calendar effect and lower inflation. This resulted in adjusted sales growth of nearly 3%, the highest in three years, indicating a solid recovery in the market.

The company reported a 7% growth in retail sales at the beginning of the year, outperforming the market growth of 16% over a two-year period. Additionally, e-commerce sales increased by almost 9%, surpassing market growth. Despite facing unique challenges and high comparison figures, Willys continued to show strong performance, with a total and like-for-like sales growth of 8% and 6%, respectively.

Hemköp also delivered a strong performance in the first quarter, with net sales increasing by almost 8% and like-for-like retail sales growing by 7%. The operating profit in this segment increased to SEK 101 million, with an operating margin of 5.2%.

Looking at Dagab, the company reported a 4% increase in net sales, driven by strong growth in sales for Axfood’s Group-owned stores. The operating profit for this segment amounted to SEK 268 million, with an operating margin of 1.4%.

On the financial front, the company reported a positive cash flow of SEK 129 million in the first quarter, significantly higher than the previous year. The net debt ratio remained stable at zero, and total investments for the quarter amounted to SEK 354 million.

In terms of sustainability efforts, Axfood is expanding its assortment of sustainable and healthy products, with a focus on hybrid products. The company has also accelerated its transition to renewable fuel, reducing its climate impact by 29% per ton of goods transported.

Overall, Axfood remains optimistic about its outlook for the year, with plans to expand its presence with 10 to 15 new Group-owned stores across different concepts. Despite challenges and uncertainties in the market, the company maintains a strong financial position and ambitious agenda for future growth.