Swedish retailer Axfood has reported a 36.1% increase in net sales to SEK 18.7 billion (€1.7 billion) in the third quarter of its financial year.
The company said it continued to grow 'significantly more than the market' during the quarter, driven by positive contributions from all businesses and an 'outstanding performance' by Willys.
Retail sales amounted to SEK 14 billion (€1.3 billion), up 15.5% year-on-year, while operating profit amounted to SEK 975 million (€88.4 million).
Adjusted operating profit increased by 25.2% to SEK 1.02 million (€93 million), with the adjusted operating margin at 5.4%.
Net profit for the period was SEK 745 million (€67.6 million), and earnings per share before dilution amounted to SEK 3.40.
'Substantial Sales Growth'
Commenting on the company's performance, president and CEO of Axfood, Klas Balkow, said, "We reported substantial sales growth in the third quarter, clearly strengthening our position and gaining market share, which led to a positive earnings development calculated in SEK. Growth was particularly strong for Willys, whose business concept of offering Sweden’s cheapest bag of groceries is attracting a growing number of customers.
"But also Eurocash is delivering strong sales growth now that cross-border shopping has recovered. The continued recovery for stores in central urban locations is particularly beneficial for Hemköp, and Snabbgross once again recorded a very strong quarter, despite high comparison figures."
For the period between January to September, Axfood generated net sales of SEK 53.7 billion (€4.9 billion), up 31.6% including Bergendahls Food.
Retail sales increased by 9.7% to SEK 40.5 billion (€3.7 billion), while operating profit amounted to SEK 2.6 billion (€240 million)
Adjusted operating profit amounted to SEK 2.5 billion (€230 million), up 22.6%, while net profit for the period was SEK 2 billion (€180 million).
Balkow stated, "Overall, we are well positioned and have the ability to manage the challenges with which we are presented. With our distinctive concepts, we cater to consumers’ various preferences, and a rapid pace of development across all areas of the group is further strengthening our competitiveness and bringing us closer to our vision of being the leading company within affordable, good and sustainable food."
© 2022 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.