Axfood (AXFO) Q1 2026 earnings summary

Executive summary

• Achieved volume growth and improved efficiency, leading to increased profitability and earnings in a highly competitive market.

• Navigated global uncertainty, including impacts from the Middle East conflict and volatile market conditions.

• Maintained strong customer focus, brand concepts, and strategic initiatives in data, AI, and supply chain efficiencies.

• Willys led in discount, Hemköp gained market share, and City Gross improved through restructuring.

• Intense preparations and implementation for VAT reduction on food products from April 1.

Financial highlights

• Net sales grew 2.6% year-over-year to SEK 21,595m, with retail sales up 3.8%.

• Group operating profit increased 12.1% to SEK 806m; adjusted operating profit SEK 812m, margin 3.8%.

• Operating margin improved to 3.7% (3.4% last year); adjusted margin at 3.8%.

• Cash flow from operating activities was SEK 1,093m, down from SEK 1,232m; negative cash flow due to inventory build ahead of Easter.

• Net debt/EBITDA increased to 2.1, impacted by dividend payout; equity ratio at 17.3%.

Outlook and guidance

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

• Plan to open 10–15 new Group-owned stores in 2026, with continued high pace of expansion.

• Items affecting comparability expected at SEK 50m, mainly structural costs in City Gross.

• Too early to assess the full impact of VAT reduction and consumer behavior changes.