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Retail

Axfood Sees Strong Growth Amid High Inflation

Swedish retailer Axfood has posted 29.3% growth in net sales to SEK 35.1 billion (€3.3 billion) in the first half of its financial year.

Operating profit amounted to SEK 1.6 billion (€150 million), including SEK 143 million net, in items affecting comparability.

Adjusted operating profit amounted to SEK 1.5 billion (€140 million), up 20.8% year-on-year, while the operating margin was 4.2%.

Net profit for the period amounted to SEK 1.3 billion (€120 million), the company added.

Second-Quarter Performance

Net sales amounted to SEK 18.5 billion (€1.8 million) in the second quarter, up 32.8% year-on-year, including the acquired Bergendahls Food.

Operating profit amounted to SEK 789 million, while operating margin stood at 4.3%.

The acquisition of Bergendahls Food, a strong quarter for Willys, and a robust recovery for Eurocash and Snabbgross contributed to strong sales growth and higher earnings, Axfood noted.

Axfood president and CEO, Klas Balkow, added, “In recent months, we have approached nearly double-digit food price inflation.[…]. The extremely rapid pace of the price increases from our suppliers has not yet been reflected in consumer prices.

"Demand for campaign products has also increased, and continued high costs for electricity and fuel have had a negative impact. But thanks to our strong growth in physical stores, with Willys benefiting from the prevailing low-price trend and the return to cross-border shopping, as well as higher volumes from the acquired company Bergendahls Food, we once again delivered increased earnings this quarter. The divestment of Mat.se and effective cost control in our chains also contributed to the positive earnings trend.”

© 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.

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