Q2 2025 Axfood AB Earnings Call Transcript
Key Points
- Axfood AB (AXFOY) reported strong growth in the second quarter, significantly exceeding market development with a 23% increase in retail sales.
- Investments in automation and logistics have contributed to increased efficiency and competitiveness for the group.
- The company made important progress in sustainability, including the inauguration of Sweden's largest solar park.
- Willys, a key brand under Axfood AB (AXFOY), demonstrated a strong performance with a 10% growth, outpacing the market.
- The company achieved a higher operating profit of SEK934 million, with an operating margin increase to 4.5%.
- City Gross, acquired in November last year, had a negative impact on the group's profit development.
- The operating margin, excluding items affecting comparability, decreased by 0.1% points to 3.9%, impacted by the City Gross acquisition.
- Dagab's performance was negatively impacted by a lower gross margin due to increased market investments.
- The company had to streamline support functions, resulting in the removal of 100 positions, which will lead to cost savings but indicates restructuring challenges.
- Despite strong sales growth, the logistics center's optimization is still ongoing, indicating potential future costs and adjustments.
Good morning. So this is the Axfood's second quarter 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 present 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. I will now hand over the words to Simone, so please go to page number 2.
Thank you, Alex, and good morning everyone. We summarized a strong second quarter with growth that significantly exceeded the market development. We have a continued momentum in Willys, Hemköp and Snabbgross and through affordable and attractive offerings, more customers are choosing to do the grocery shopping in our stores.
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