Axfood (AXFO) investor relations material

Executive summary

• Achieved positive earnings growth and strengthened market presence despite high comparison figures and food price deflation, supported by efficiency measures and high activity to boost competitiveness.

• Maintained strong market positions, continued executing long-term strategic plans, and implemented tactical actions for short-term growth.

• Hemköp delivered strong growth, Willys maintained its market-leading position but faced limited growth due to high comps, and City Gross improved earnings despite negative sales growth.

• The Group continued expansion, opening new stores and surpassing 4 million Willys Plus members.

• Climate targets were validated by the Science Based Targets initiative, and sustainability-labelled products increased their share of sales.

Financial highlights

• Q2 2026 net sales increased by 0.9% to SEK 23,197m; retail sales up 2.1% to SEK 20,713m.

• Group operating profit rose to SEK 964m (up 3.2%), with an operating margin of 4.2%; adjusted operating profit was SEK 972m (up 1.4%).

• Net profit reached SEK 647m, up 4.0% year-over-year; EPS before dilution SEK 2.94 (+3.3%).

• Cash flow from operating activities in Q2 was SEK 1,221m, down 36.7% year-over-year, mainly due to the VAT cut on food.

• E-commerce sales grew 5.7%, below the market's 9.9% growth.

Outlook and guidance

• 2026 outlook unchanged: planned investments of SEK 2,200–2,300m, including SEK 470m for logistics automation.

• Plan to open 10–15 new Group-owned stores, with seven established in the first half.

• City Gross structural costs for 2026 estimated at SEK 50m.

• Continued focus on operational efficiency, sustainability, and strategic investments in logistics and store concepts.

• Long-term targets: grow faster than the market, operating margin ≥4.5%, equity ratio ≥20%.