Swedish retailer Axfood has booked an increase in first-half profits, boosted by an increase in customer numbers and continued cost control measures.
In the six months to the end of June, profit after tax amounted to SEK403m (US$57.5m), a 1.3% increase on the prior-year period.
Operating profit climbed 1.8% to reach SEK568m, while operating margin was 3.2%, the company said today (17 July).
Consolidated wholesale and retail sales totalled SEK18bn compared to SEK17.15bn last year, an increase of 5%.
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CORRECTION INTERIM REPORT AXFOOD AB 1 JAN-30 JUNE 2012
SECOND QUARTER SUMMARY
- Axfood's consolidated sales for the period April-June totalled SEK 9,292 m (8,889), an increase of 4.5%.
- Retail sales for Group-owned stores increased by 3.7% during the period.
- Like-for-like sales increased by 0.5%.
- Operating profit for the period was SEK 320 m (317).
- Profit after financial items was SEK 308 m (307) for the period.
- Profit after tax totalled SEK 226 m (226) for the period, and earnings per share were SEK 4.31 (4.30).
- Axfood signed an agreement with MatHem i Sverige AB on the sale of Netxtra.
- Axfood's goal for 2012 is to achieve an operating profit at the same level as in 2011.
Axfood AB conducts food retail and wholesale business in Sweden. Retail business is conducted through the wholly owned store chains Willys, Hemköp and PrisXtra, comprising 243 stores in all. In addition, Axfood collaborates with a number of proprietor-run stores that are tied to Axfood through agreements. These include stores within the Hemköp and Willys chains as well as stores run under the Handlar'n and Tempo profiles. In all, Axfood collaborates with approximately 820 proprietor-run stores. Wholesaling is conducted through Dagab and Axfood Närlivs. Axfood is listed on Nasdaq OMX Stockholm AB's Large Cap list. Axel Johnson AB is the principal owner, with 50,1% of the shares.