Axfood (AXFO) investor relations material

Executive summary

• Q3 net sales rose 1.9% to SEK 22,711m and operating profit increased 5.6% to SEK 1,118m; adjusted operating profit was SEK 1,119m.

• Higher volumes, stable gross margin trends and cost control supported earnings amid food-price deflation, cost pressure and intense competition.

• City Gross reached quarterly profitability and rolling 12-month break-even ahead of its original ambition for the second half of 2026.

Financial highlights

• Q3 net sales rose 1.9% to SEK 22,711m; retail sales increased 2.9% to SEK 20,200m, with like-for-like growth of 1.6%.

• Q3 operating profit was SEK 1,118m versus SEK 1,059m; adjusted profit was SEK 1,119m versus SEK 1,099m. Reported margin was 4.9% versus 4.8%; adjusted margin was 4.9% in both periods.

• Q3 items affecting comparability were SEK -1m versus SEK -39m a year earlier.

• 9M net sales rose 1.8% to SEK 67,504m; operating profit increased 6.5% to SEK 2,888m and adjusted operating profit rose 3.1% to SEK 2,903m.

• 9M net profit was SEK 1,944m versus SEK 1,802m; diluted-before EPS was SEK 8.83 versus SEK 8.24, and adjusted EPS was SEK 8.88 versus SEK 8.61.

Outlook and guidance

• FY2026 planned capital expenditures were revised to SEK 2,000–2,100m from SEK 2,200–2,300m, excluding acquisitions and leasehold or right-of-use assets.

• Kungsbacka automation spending is estimated at SEK 200m in 2026; ~SEK 270m of planned investment shifts to 2027. Operations and ramp-up remain expected in 2030, though delay cannot be ruled out.

• FY2026 plans include 10–15 new owned stores; City Gross structural costs are forecast at SEK 25m, down from SEK 50m, with timing changes affecting comparability items.

• Long-term targets are retail growth faster than the market, operating margin of at least 4.5%, and year-end equity ratio of at least 20%.