Swedish grocery retailer and wholesaler Axfood saw its share price fall today (8 February) despite recording record full-year results.

Shares were down 5.2% to SEK226.8 a share at 12:51 CET today after the operator posted a near 9% rise in profits for 2010.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

Axfood’s full-year net profit increased 8.7% to SEK862m (US$134.1m), while fourth-quarter net profit rose 13.5% to SEK227m

During 2010, sales grew 5.8% to SEK34.26bn. Fourth-quarter sales were up 5.4% to SEK8.88bn.

While Axfood recorded a 3.9% increase in fourth-quarter sales ffrom its company-owned stores, as well as a 1.6% rise in like-for-like sales, it said that despite the economic recovery, food retailing “did not grow in pace with other retail sectors or the restaurant sector”.

See Also:

It added that industry statistics showed that consumers gave more priority to consumer durables and restaurant visits through an “exceptionally cold winter”.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

The company said that its discount chain Willys, supermarket and hypermarket business Hemkop and its Narlivs c-store outlets performed well, with Willys “continuing its profitable and stable development during the year and gained market shares”.

However, Axfood added that sales in its Stockholm-based PrisXtra chain “remained unsatisfactory”, with operating profit, excluding SEK14m in restructuring costs, reaching SEK9m.

Axfood said that it is aiming for private-label sales to account for at least 25% of sales. At the end of 2010, its share had reached 22%, with the company saying that while the trend remained positive, growth was slower than planned.

The retailer and distributor is forecasting operating profit of at least the same level as in 2010, revealing plans to open 14 stores, and modernise a further 40.

Click here for Axfood’s full earnings statement.