Swedish retailer Axfood has reported a 2.6% year-on-year increase in retail sales to SEK 16.5 billion (€1.4 billion) in the second quarter of its financial year.
Net sales for the quarter increased 1.2% to SEK 21 billion (€1.8 billion) while operating profit amounted to SEK 836 million (€72.6 million), the company added.
Net profit for the quarter amounted to SEK 582 million (€50.6 million) and earnings per share before dilution to SEK 2.68.
President and CEO Klas Balkow stated, “Despite exceptionally high comparison figures, Axfood grew more than the market during the second quarter. Retail sales increased 2.6%, driven by continued volume growth due to a strong inflow of customers.
“It is clear that our concepts are consolidating their market positions which have been significantly improved in recent years.”
Divisional Performance
Hemköp posted like-for-like sales growth of 4.6% during the quarter and is working on its assortment, price value, and store modernisation projects.
Elsewhere, restaurant wholesaler Snabbgross delivered growth of 1.8%.
Balkow added, “Willys’ ambition to offer Sweden’s cheapest bag of groceries is fundamental to the chain’s strategy, and during the quarter Willys continued to secure its price position.”
Operating profit was affected due to costs associated with logistical restructuring, acquisition of City Gross, and operational disruptions in the stores’ payment systems, the company added.
Half-Year Performance
In the first half of 2024, Axfood’s retail sales grew 4.7% to SEK 32.8 billion (€2.9 billion), while net sales amounted to SEK 41.3 billion (€3.6 billion), or an increase of 3.1%.
Operating profit amounted to SEK 1.7 billion (€150 million), while operating margin was 4.0%.
Net profit for the period amounted to SEK 1.1 billion (€96 million) and earnings per share before dilution was SEK 5.28.