Axfood (AXFO) Q4 2025 earnings summary

Executive summary

• Achieved eleven consecutive years of market share gains, with retail sales and customer traffic outpacing the Swedish market across all major banners, including Willys, Hemköp, and City Gross.

• Strong year-end growth driven by higher sales, improved operating margins, and effective cost control.

• Completed the acquisition and integration of City Gross, contributing to group sales and profit growth.

• Continued investments in logistics automation, sustainability, and store expansion, including a new logistics centre in Kungsbacka and transition to fossil-free transports.

• Launched new private label products and increased private label share of sales.

Financial highlights

• Full-year net sales increased 6.1% to SEK 89,152m; Q4 net sales up 4.4% to SEK 22,831m.

• Operating profit (excluding items affecting comparability) rose 7.4% to SEK 3,688m; Q4 adjusted operating profit SEK 873m, margin 3.8%.

• Net profit for the year was SEK 2,375m, up 7.0%; EPS before dilution SEK 10.84, up 6.7%.

• Cash flow from operating activities increased 23.7% to SEK 6,751m; cash flow for 2025 was SEK 345m higher than last year.

• Board proposes increased dividend of SEK 9.00 per share, split into two payments.

Outlook and guidance

• Investments for 2026 expected at SEK 2,200–2,300m, including SEK 470m for automation in Kungsbacka.

• Plan to open 10–15 new group-owned stores in 2026.

• SEK 50m in structural costs for City Gross in 2026, classified as items affecting comparability.

• City Gross profitability targeted for the second half of 2026, with further structural measures planned.

• Long-term group operating margin target set at 4.5%.