Axfood (AXFO) Q3 2025 earnings summary

Executive summary

• Achieved strong growth and increased market share across all segments, with high customer traffic and volume growth, outperforming the Swedish food retail market in both sales and earnings growth.

• Willys, Hemköp, and Snabbgross led growth, while City Gross showed a positive turnaround trend.

• Improved efficiency in logistics and cost control, with continued investments in sustainability and store modernization, including a new automated logistics center in Kungsbacka.

• Maintained a high rate of development and expansion, focusing on efficiency, cost control, and strengthening competitive advantages.

Financial highlights

• Q3 2025 net sales increased 6.6% to SEK 22,286m; retail sales up 19.5% to SEK 19,625m (6.2% excluding City Gross).

• Operating profit reached SEK 1,059m (4.8% margin); adjusted operating profit SEK 1,099m (4.9% margin).

• Net profit for Q3 was SEK 727m; EPS before dilution SEK 3.30.

• Cash flow from operating activities was SEK 1,352m in Q3 and SEK 4,513m for 9M 2025, up 25.8% year-over-year.

• For the first nine months, net sales increased 6.6% to SEK 66,321m; operating profit (excluding comparability items) increased 5.8% to over SEK 2.8 billion.

Outlook and guidance

• Investments for 2025 expected at SEK 1,600–1,700m, excluding acquisitions and leaseholds.

• Store expansion plan revised to nine new group-owned stores for 2025 due to slight delays, plus three retail-owned stores joining from competitors.

• City Gross targeted to reach profitability in the second half of 2026, with ongoing structural measures and current progress in line with the turnaround plan.

• New logistics centre in Kungsbacka to be operational by 2030, increasing capacity by at least 20%.

• Items affecting comparability for the year mainly relate to City Gross structural costs, estimated at SEK 115–150m.