Axfood (AXFO) Q3 2025 earnings summary

Executive summary

• Achieved strong quarterly growth and increased market share across all segments, with high customer traffic and volume growth, outperforming the overall market.

• Earnings and operating margins improved in all segments, supported by efficiency gains and solid cost control.

• Continued investments in logistics, sustainability, and store modernization, including plans for a new automated logistics centre in Kungsbacka to boost capacity by at least 20% by 2030.

• City Gross integration ongoing, with structural costs impacting results and profitability targeted for the second half of 2026.

Financial highlights

• Q3 2025 net sales increased 6.6% to SEK 22,286m; retail sales up 19.5% to SEK 19,625m (6.2% excluding City Gross).

• Operating profit reached SEK 1,059m (4.8% margin); adjusted operating profit SEK 1,099m (4.9% margin).

• January–September net sales up 6.6% to SEK 66,321m; operating profit (excluding comparability items) up 5.8% to over SEK 2.8 billion.

• Cash flow from operating activities for Q3 was SEK 1,352m and SEK 4,513m for the first nine months, up 25.8% year-over-year.

• Dividend of SEK 8.75 per share for 2025, paid in two parts.

Outlook and guidance

• Full-year CapEx outlook for 2025 set at SEK 1,600–1,700m, excluding acquisitions and leaseholds.

• Store expansion plan revised to nine new group-owned stores for 2025 due to slight delays; at least 10 new Willys stores annually targeted.

• City Gross expected to reach profitability in the second half of 2026, with current progress in line with the turnaround plan.

• Items affecting comparability expected at approx. SEK 115m, mainly structural costs related to City Gross.