Swedish retailer Axfood says it has seen an increase in market share in its financial year 2024 amid a challenging environment.
Axfood reported net sales of SEK 84.1 billion (€7.33 billion) during the year, registering an increase of 3.6%.
Out of this total, retail sales amounted to SEK 68.1 billion (€5.9 billion), or an increase of 6.8% compared to the previous financial year.
Operating profit at the retail group amounted to SEK 3.3 billion (€290 million), down from SEK 3.4 billion (€300 million) in the comparable period, while operating margin stood at 3.9%.
Adjusted operating profit fell to SEK 3.4 billion (€300 million), from SEK 3.6 billion (€310 million) in the previous year.
Fourth-Quarter Performance
The company reported retail sales growth of 4.2% in the fourth quarter, excluding the City Gross chain.
Net sales increased by 5.3% year-on-year during the quarter to SEK 21.9 billion.
President and CEO Simone Margulies commented, “The market dynamics is characterised by more cautious and price-conscious consumers as well as intense competition in the market.
“Our focus on productivity and cost efficiency has been intensified, and with our structure and the investments we are making in the base operations we have a good platform to gradually improve our competitiveness over time.”
Divisional Performance
Willys performed ahead of the market during the final quarter, registering growth of 4.8%, driven by high customer traffic and increased loyalty.
Hemköp reported a like-for-like growth of 4.6% as it strengthened its market position.
Snabbgross saw increased volumes and a higher number of customers to consolidate its market position and increase its market share.
Dividend And Outlook
Axfood's board of directors has proposed that the Annual General Meeting approve an increased dividend of SEK 8.75 per share, to be paid out on two occasions.
Margulies added, “Our ambition for 2025 is to expand the store network by 10–15 new group-owned stores, the majority of which will be Willys.
“Axfood has a strong financial position, and the group’s investment needs are expected to amount to between SEK 1.6 billion to 1.7 billion in 2025.“
