Axfood Sees 6% Sales Increase, But Investments Lead To Profit Drop
Swedish retailer Axfood has reported consolidated net sales of SEK 45,968 million in 2017, representing an increase of 6% year on year.
However, the group, which operates the Willy’s and Hemköp grocery chains, saw operating profit fall slightly, dropping from SEK 1,902 million in 2016 to SEK 1,886 million in 2017.
Axfood says that this result was in line with the group’s forecast, and based on the retailer’s ‘strong financial position’, the board has proposed an ordinary dividend of SEK 7 per share, which is an increase of approximately 17%.
Axfood made a number of investments during the year, including its acquisition of Saba’s fruit and vegetable warehouse operation, online retailer MAT.se and meal provider Middagsfrid, as well as a stake in Eurocash with Norgesgruppen.
The company says that these investments will allow for future growth.
“With the fourth quarter now behind us, we have closed the books for an eventful and, in terms of sales, successful 2017,” said Klas Balkow, president and CEO of Axfood.
“We will continue to invest in our various food concepts and develop them in line with customers’ shopping behaviour and the digital opportunities of tomorrow. This means that we continue our high investment level.”
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.