Q4 2025 Axfood AB Earnings Call Transcript
Key Points
- Axfood AB (FRA:AXL1) reported a strong market growth of 8.7% in retail sales, outperforming the overall market growth of 4.5%.
- The company achieved its 11th consecutive year of market share gains, indicating strong customer loyalty and effective business strategies.
- Operating profit increased to SEK860 million, with an improved operating margin of 3.8%, driven by high sales volumes and effective cost control.
- Willys, one of Axfood's brands, continued to outperform the market with strong customer loyalty and increased earnings.
- Axfood's sustainability efforts have led to a significant reduction in transport emissions by approximately 70% over the last five years.
- City Gross, a recent acquisition, reported a lower operating margin of 0.6% due to items affecting comparability and store closures.
- Snabbgross experienced a setback in profitability due to temporary market investments that did not yield the expected return on investment.
- Dagab's operating profit was negatively impacted by a lower gross margin due to market investments and negative mix effects.
- The company's net debt increased due to the acquisition of City Gross and dividend payments, although it is now below 2.
- Axfood faces a highly competitive market environment with intense price competition, impacting profitability and requiring continuous strategic investments.
Good morning. This is the Axfood year-end report 2025 telephone conference. And with me today are Simone Margulies, President and CEO; and Anders Lexmon, CFO. In the Investor section of our axfood.com website, you will find the presentation material for today's call. We encourage you to have that presentation at hand as you listen to our prepared commentary. After the presentation, we will be taking questions. A recording of this call will be made available on our website.
So with that, I will now hand over the words to Simone, so please go to 2 and go ahead, Simone.
Thank you, Alex, and good morning, everyone. We report another quarter of about market growth and stronger market positions for all our retail chains. By leveraging the strength of our business concept, we are also preparing for the future and investing in strategically important areas to continue attracting more customers, become even more efficient, and strengthen
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