Swedish retailer Axfood has reported good profitability despite high comparison figures in the third quarter of its financial year.
Net sales increased by 2.2% year-on-year, amounting to SEK 13.7 billion (€1.37 billion), with store sales increasing 0.7% to SEK 11.6 billion (€1.16 billion).
Excluding items affecting comparability, operating profit amounted to SEK 811 million (€81.1 million), up 1.9% year-on-year.
Operating profit, including items affecting comparability of SEK 18 million for the integration with Bergendahls, amounted to SEK 793 million with an operating margin was 5.8%.
Net profit for the quarter was SEK 601 million, and earnings per share before dilution were SEK 2.93 (2.95).
In September, the company paid a dividend of SEK 3.75 per share to its shareholders – the second half of the total shareholder dividend of SEK 7.50 (7.25) per share.
‘An Eventful Quarter’
Commenting on the company’s performance, president and CEO of Axfood, Klas Balkow, said, “We have closed an eventful quarter with a high pace of development. We delivered high profitability and increased our earnings adjusted for costs related to the Bergendahls acquisition.
“Meanwhile, it’s an exciting time with high activity in all parts of our group. This past summer, we communicated new and large investments in optimising our logistics platform. In addition, we have received clearance from the Swedish Competition Authority and completed our acquisition of Bergendahls. The acquisition creates synergies and strengthens our long-term position in the market through higher efficiency, which also benefits wholesale customers and consumers. The integration of these businesses is now underway, and it feels great to welcome new colleagues to the Axfood family.”
On 1 October 2021, Axfood completed the acquisition of the wholesale business Bergendahl Food AB and the minority stake of 9.9% of the shares in City Gross Sverige AB.
January To September Performance
Axfood generated net sales of SEK 40.8 billion in the nine months to September 2021, registering a growth of 1.9% compared to the same period in 2020.
Store sales for the Axfood Group amounted to SEK 35.4 billion in this period, up 1.4% year-on-year.
Operating profit was SEK 1.96 billion, with an operating margin of 4.8%. Net profit amounted to 1.5 billion, and earnings per share before dilution were SEK 7.36.