Q1 2026 Axfood AB Earnings Call Transcript
Key Points
- Axfood AB (LTS:0R6R) reported a strong financial performance with group operating profit increasing to SEK 806 million and an improved operating margin of 3.7%.
- The company demonstrated volume growth across its segments, with Hemkop showing a particularly strong performance, increasing its market share and retail sales growth by almost 6%.
- Axfood AB (LTS:0R6R) successfully implemented a VAT reduction across millions of items, showcasing effective collaboration and execution throughout the organization.
- The company launched over 100 new private label products, focusing on sustainability and health, which contributed to an increase in private label sales to over 32%.
- Axfood AB (LTS:0R6R) is investing in long-term growth by expanding its store network and modernizing existing stores, creating new growth opportunities.
- Retail sales growth for Axfood AB (LTS:0R6R) was below market expectations, with a 3.8% increase, which was lower than hoped for.
- Willys, a key segment, experienced temporary negative effects on sales growth due to major store refurbishments and relocations.
- The company faced increased costs due to manual work for price adjustments and IT development related to the VAT reduction.
- Axfood AB (LTS:0R6R) experienced a negative cash flow of minus SEK 692 million in the first quarter, impacted by inventory building ahead of Easter.
- The geopolitical tensions in the Middle East have led to increased fuel costs and a weaker Swedish krona, which could impact future profitability.
Good morning. This is the Axfood first quarter 2026 telephone conference. With me today are Simon Margulies, President and CEO, and Anders Lexmon, CFO.
In the Investors 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 word to Simone. So, please go to Page 2.
Thank you, Alex, and good morning, everyone.
We summarize the quarter with the volume growth, improved efficiency and increased profitability and that in a market that is characterized by a high activity level. Through clear customer focus and collaboration, we continue to create value with our strong and distinctive concepts. Before we start the presentation, I briefly want to comment on the
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