Sweden’s Axfood Sees Sales Up 4.6% In Fourth Quarter
Swedish retailer Axfood has posted a 4.6% increase in consolidated net sales in the fourth quarter of its financial year.
The group posted sales of SEK 12.37 billion (€1.19 billion) for the period.
Operating profit totalled SEK 425 million (€40.64 million) – an increase of 7.0% – while operating margin was 3.4%. Net profit for the period totalled SEK 328 million (€31.36 million).
“[The year] 2018 was a successful year for Axfood,” commented president and CEO Klas Balkow. “We grew more than the market, achieved an operating profit of more than SEK 2 billion [€0.19 billion] and took important steps in the development of our logistics, including the inauguration of our first automated warehouse.
“We strengthened our position in the market, where, above all, Willys and Axfood Snabbgross performed strongly, both during the quarter and the full year,” added Balkow.
The period also saw Axfood increase its ownership in Urban Deli from 50% to 90.7%, with Balkow eyeing further investments in the business over the coming year.
“The investments we are pursuing to develop our business give rise to capex need of approximately SEK 1.5-1.6 billion [€0.14-€0.15 billion] for 2019, which includes the year’s planned investments coupled to automation of the new warehouse in Stockholm,” he said.
“Despite major investments, we stand financially strong,” Balkow added.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.