Axfood (AXFO) Q4 2024 earnings summary

Executive summary

• Achieved strong operational and market-leading growth in 2024, with increased customer traffic, loyalty, and volume growth, supported by strategic investments and the City Gross acquisition, expanding into the hypermarket segment.

• Gained market share in a competitive environment, with retail sales up 14.1% in Q4 and a two-year growth of 24%, outpacing the market.

• E-commerce sales grew 7.3% in Q4, with a market share above the industry average.

• Significant progress in logistics restructuring and sustainability, achieving a 50% reduction in food waste and over 30% reduction in transport carbon footprint year-over-year.

Financial highlights

• Group net sales rose 5.3% in Q4 to SEK 21,860m; full-year net sales increased 3.6% to SEK 84,057m.

• Adjusted operating profit for Q4 was SEK 772m (margin 3.5%); full-year adjusted operating profit was SEK 3,433m, down 4.7% year-over-year.

• Operating margin, excluding items affecting comparability, was 4.1% for the year, 0.4 percentage points lower than last year.

• Cash flow from operating activities was SEK 5,459m for the year, down 6.0% year-over-year.

• Board proposes increased dividend of SEK 8.75 per share, split into two payments, corresponding to 86% of profit after tax.

Outlook and guidance

• Investments for 2025 expected at SEK 1,600–1,700m, focused on recurring operations and expansion, excluding acquisitions and leasehold.

• Plan to open 10–15 new group-owned stores in 2025, mainly Willys, with a positive net effect after City Gross right-sizing.

• City Gross expected to reach profitability in the second half of 2026; 2025 operating profit to be charged with SEK 100m in structural costs.