Axfood reports an operating profit of SEK 565 million (544) for the first quarter of 2021. The average of equity analysts’ expectations was an operating profit of SEK 552 million. The sales amounted to SEK 13,203 million (13,067) during the quarter. Analysts’ estimate of sales was SEK 13,255 million. The operating margin was 4.3 percent (4.2) for the quarter.
“Axfood got off to a stable start in the new year, but store sales growth of 2.4 percent was for obvious reasons significantly lower than in previous quarters,” says President and CEO Klas Balkow, in a comment according to Jordbruksaktuellt. “In addition to a negative calendar effect, this quarter is compared with a first quarter last year which was strongly affected by the bunkering.”
Willys strengthened its position and grew faster than the market, even during the first quarter, but for Eurocash the situation was as difficult as before in the stalled border trade. The franchise stores within Hemköp and Tempo continued to develop strongly, but the challenges for Hemköping’s large wholly owned stores in central metropolitan locations remained.
Growth in e-commerce
Axfood’s e-commerce sales to consumers grew by 139 percent during the quarter. As part of Axfood’s development of the business for future needs, it will move its fruit and vegetable warehouse from Helsingborg to a new, larger and more efficient warehouse in Landskrona with good opportunities for future expansion and automation.