Swedish retailer Axfood has seen its consolidated net sales rise 9.4% in the second quarter of its financial year, with the group posting sales of SEK 11.925 billion (€1.25 billion) for the period.
Operating profit stood at SEK 487 million, slightly down from the SEK 494 million posted in the same period last year. Net profit, at SEK 379 million, was also slightly down year on year (SEK 384 million).
Strong Sales
“Axfood’s sales were strong across the board during the second quarter, entailing good growth for the group,” said Axfood president and CEO Klas Balkow.
“The level of activity was high in all subsidiaries and all channels. We have continued to invest in future growth, which is largely related to our digital offerings.”
M&A Activity
The quarter saw plenty of M&A activity for the group, with the cross-border chain Eurocash Food AB consolidated as of 1 April, and Middagsfrid, a pre-packed-dinner company, acquired by the group at the end of May.
Balkow noted that operational profit for the period was “in line with the same quarter a year ago and our full-year forecast. Underlying profitability is stable, however, Hemköp’s earnings were affected by the temporary closure of the Hemköp City store in Stockholm for refurbishment and costs for an expansive e-commerce roll-out. In addition, operating profit was affected by costs associated with the group’s future ventures.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
