Growth

Axfood will grow faster than the market. In 2024, Axfood’s retail sales increased by 6.8% (14.3), while market growth was 4.1% (7.5), 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 many years, both in physical stores and in e-commerce. This trend continued in 2024 despite exceptionally high comparison figures from the past two years. The acquisition of City Gross contributed to the Group’s growth.

Profitability

The operating margin will be at least 4.5% over the long term. The operating margin in 2024 was 3.9% (4.1).

Due to investments in logistics, acquisitions and initiatives to strengthen the Group’s price position in the market, the operating margin has been below the profitability target in recent years. However, investments in the base operations, together with the development of 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 2024, the equity ratio was 20.9% (23.9).

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. The equity ratio at year-end was affected by the acquisition of City Gross, which was primarily financed through increased borrowing.