Axfood contributes to a better life where everyone can enjoy affordable, good and sustainable food.
Outstanding sales growth – Axfood is growing more than the market as awhole.
Axfood is digitalizing for the future – digital receipts, e-commerce rollout, and investment in online pharmacy.
CEO'S MESSAGE
Successful year of growth
As the Axfood family now puts 2017 on record, we can once again point to a successful year – a year with several strategic acquisitions, new stores and an accelerated e-commerce roll-out. Parallel with this we showed very strong growth and delivered an operating margin in line with our long-term targets. Our stronger position in the Swedish food retail market can be credited to acquired companies and high organic growth.
Klas Balkow, President and CEO
MISSION AND STRATEGY
Leader in good and sustainable food
We have refined our vision, mission and business concept to chart the course for the Group’s way forward. Axfood is made up of successful and distinctive food concepts. Close collaboration makes the companies stronger and more efficient. To fulfil our vision of being the leader at good and sustainable food, Axfood focuses on six strategic areas.
KEY FIGURES
Net sales
45,968
SEK m
Operating profit
1,886
SEK m
Operating margin
4.1%
Ordinary dividend per share (proposed)
7.00SEK
Dividend yield
4.4%
Total return last 5 years
219%
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Net sales, SEK m | 37,522 | 38,484 | 41,247 | 43,355 | 45,968 |
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Operating profit, SEK m | 1,302 | 1,447 | 1,760 | 1,902 | 1,886 |
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Operating margin, % | 3.5 | 3.8 | 4.3 | 4.4 | 4.1 |
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Ordinary dividend/share, SEK | 3.75 | 4.25 | 5.00 | 6.00 | 7.00 |
| 2013 | 2014 | 2015 | 2016 | 2017 | |
| Dividend yield, % | 4.6 | 3.6 | 6.1 | 4.1 | 4.4 |
EMPLOYEES
Diversity creates business benefit
Axfood aspires to reflect the communities that we are a part of. This should be noticeable in the product offering, but also among our employees. Diversity creates business benefit and makes us even better at meeting our customers’ varying preferences and needs.
In 2017 the share of managers with an international background increased by 2 percentage points to 13%.
Axfood reflects Swedish society today
22%
of Axfood’s employees have an international background
Personal development within Axfood is important; every
20
minutes an e-learning course is started, 24 hours a day
SUSTAINABILITY
A positive force in society – not least in sustainability
Axfood aspires to be a positive force for change in society. By taking a stance, inspiring and daring, we are driving ourselves and the industry towards greater sustainability. The following are some examples of what we implemented during 2017:
-
All fresh produce bags are made of bioplastic
-
Deposits on plastic grocery bags
-
Encouraged our customers to choose vegetarian options with the promotional campaigns Vego för alla (“Veg for everyone”) and Variera med vego (“Vary with veg”)
-
Axfood has taken a stance against biodiesel based on palm oil
-
To deal with food waste, several hundred tonnes of food are donated to charitable causes
-
First Swedish food retailer to help international fruit and vegetable growers phase out pesticides that are banned within the EU
364 Swedish-labelled private label products
Private label products as share of net sales
Sweden’s cheapest bag of groceries – with good food for everyone
Willys is Sweden’s leading discount grocery chain, offering a wide assortment at 207 stores, of which 8 are part of the newly acquired cross-border shopping chain Eurocash. Willys will continue to develop the discount segment by offering Sweden’s cheapest bag of groceries – both in stores and online.
Net sales
25,415
SEK m
Growth9.7%
Operating margin4.0%
Passion for food and inspiration
Hemköp offers an attractively priced and wide assortment, with a rich offering of fresh products. Through its 67 Group-owned stores and 120 retailer-owned stores, Hemköp aims to inspire passion for food and make it easy for customers to find good meal solutions. Starting in 2018, Hemköp includes the Tempo brand, with 145 franchise stores.
Net sales6,189
SEK m
Growth
0.3%
Operating margin3.2%
Work together with business customers to develop better business
Axfood Närlivs previously handled the Group’s business customers. At the start of 2018 Axfood Närlivs was reorganized. Axfood Snabbgross becomes its own segment. Tempo was moved to Hemköp, while Handlar’n and convenience retailing became part of Dagab.
Net sales
2,984
SEK m
Growth
3.5%
Operating margin
6.3%
Efficient and innovative business
Dagab is the support company for the Group’s purchasing and logistics operations. Dagab is responsible for an efficient flow of products and logistics. Warehousing is conducted through seven distribution centres. Dagab also includes newly acquired mat.se and Middagsfrid.
Net sales
41,139
SEK m
Growth
5.2%
Operating margin
1.7%