Q2 2024 Axfood AB Earnings Call Transcript
Key Points
- Retail sales grew by 2.6%, driven by continued volume growth and a strong inflow of customers.
- E-commerce sales increased by 7.4%, outperforming the market, with a 5.2% share of consumer sales from e-commerce.
- Willys posted solid growth and Hemköp showed strong like-for-like development, contributing positively to overall performance.
- The company made significant progress with its new logistical structure, including the ramp-up of frozen food volumes at the new logistics center in BÃ¥lsta.
- Axfood AB (FRA:AXL1) signed an agreement to acquire the City Gross hypermarket chain, which is expected to provide additional growth opportunities and increased competition in the hypermarket segment.
- Consolidated net sales grew only by 1.2% during the quarter, which is relatively low.
- The development for Dagab held back total growth due to softer sales to external customers and a negative calendar effect.
- Adjusted operating profit decreased due to higher-than-anticipated transition costs and operational disruptions.
- The company incurred acquisition-related costs of SEK26 million for the City Gross acquisition, impacting profits negatively.
- Temporary operational disruptions in the stores' payment system in May had an estimated negative impact on profits of SEK20 million.
Good morning, everyone, and thank you also from our side to join today's call. As you heard Anders Lexmon, is with me here today to present the interim report for the second quarter of 2024. And in the investors section of our website, you will find the presentation material for today's call and a recording will also be made available afterwards.
So with that, I would like to get started and please turn to page number 2. Today's agenda is as follows. First, we'll have a brief market overview and then I will give you a review of our quarterly performance. And after that, Anders will take you through our financials.
And following on this part, I will talk about our progress. We are making with some of our strategic initiatives and investments for the future. And of course, this will also include logistics, but also our announced acquisition of the hypermarket concept [with figures]. And finally, we'll have a brief summary to conclude the presentation before we open up for questions.
So with that, we are now on page
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