Growth

Axfood will grow faster than the market. In 2023, Axfood’s retail sales increased by 14.3% (11.9), while market growth was 7.5% (5.7), according to the Swedish Food Retailers Federation and HUI Research.

With different concepts and strong market positions, Axfood has grown faster than the market for several years, both in physical stores and in e-commerce. The trend has accelerated during the last two years, in particularly for Willys, and Axfood has grown twice as much as the market.

Profitability

The operating margin will be at least 4.5% over the long term. The operating margin in 2023 was 4.1% (4.2).

Due to investments in logistics and the acquisition of Bergendahls Food, the operating margin was under the profitability target for the last two years. However, these investments, together with the development in the store chains, are expected to create favourable conditions for increased profitability over time.

Financial position

The equity ratio is to amount to at least 20% at year-end. As of 31 December 2023, the equity ratio was 23.9% (24.1).

Axfood has a solid balance sheet, and the business model generates stable cash flow. The aim is to maintain a strong financial position to have the scope and flexibility to make investments that will lead to long-term benefits for the Group.