2022 begins with strong growth and stable profitability

President and CEO Klas Balkow’s comments on the interim report for the first quarter 2022:

“We continued to maintain a rapid pace in all parts of the operations during the first quarter and we have started the year with retail sales growth that is significantly higher than the market. This shows that our food and store concepts continue to attract existing and new consumers who value affordable, good and sustainable food.

All operating segments reported higher operating profit for the quarter, with strong sales and healthy productivity gains compensating for significantly higher fuel costs and a weak SEK. As a result, we can report higher adjusted operating profit of SEK 653 m and an adjusted operating margin of 3.9%, that was diluted by the consolidation of Bergendahls Food.

After a long period of low food price inflation in Sweden, we have seen a sharp increase in recent months. These price increases have been driven by several different factors – higher prices for raw materials as well as higher costs for packaging materials, fuel, electricity and transports. What is now happening in Ukraine is causing increased uncertainty and instability, and there is much to suggest that prices will continue to rise.”

First quarter summary

• Net sales totalled SEK 16,593 m (13,203), an increase of 25.7%, including the acquisition of Bergendahls Food.
• Retail sales totalled SEK 12,711 m (12,207), an increase of 4.1%.
• Operating profit amounted to SEK 835 m (565) and included items affecting comparability of net SEK 182 m. The operating margin was 5.0% (4.3).
• Adjusted operating profit amounted to SEK 653 m (565), an increase of 15.5%. The adjusted operating margin was 3.9% (4.3).
• Net profit for the period amounted to SEK 682 m (430) and earnings per share before dilution to SEK 3.30 (2.16).
• Mat.se was divested to Mathem on 1 March in exchange for newly issued shares in Mathem. The transaction resulted in a capital gain of SEK 221 m, which was recognised as an item affecting comparability during the quarter. Axfood is the second-largest owner of Mathem, with an ownership stake of 16.5%.
• Axfood's Annual General Meeting (AGM) on 23 March authorised the Board to carry out a rights issue amounting to approximately SEK 1.5 bn. The AGM also approved a dividend to shareholders of SEK 7.75 (7.50) per share. The dividend amount is divided into two payments. The first payment of SEK 4.00 was made in March, and the second payment of SEK 3.75 will take place in September.

Significant events after the balance sheet date

• Axfood's Board of Directors has resolved on the repurchase of no more than 575,000 shares related to the long-term share-based incentive programme LTIP 2022.

Axfood will present the interim report for the first quarter of 2022 in a conference call at 9.30 a.m. (CET) today on 21 April 2022. The report will be presented by Klas Balkow, President and CEO, and Anders Lexmon, CFO. To follow the presentation, visit www.axfood.com or call:
Sweden: +46 8 566 426 92, UK: +44 333 300 9267, USA: +1 646 722 4902

For further information, please contact:
Elisabet Johansson, acting Head of Investor Relations, Axfood AB, tel +46 72 22 11650
 

The information herein is such that Axfood AB (publ) is required to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person listed above, at 7 a.m. CET on 21 April 2022.

This document is an English translation of the Swedish original. In the event of any discrepancies,
the Swedish version shall govern.