Axfood growing slower, but more profitably

The third quarter for the Swedish grocery giant Axfood sees a slowing growth of 2,2 %. Main reason for the slow down is the biggest segment Willy’s that saw a slight like-for-like sales decline after a heavy growth in 2020.

The smaller segment Hemp saw a record quarter in terms of operating profit. In the same way, the whole company saw an increase of profits from Q2. However, the Axfood business seems to historically have its highest profits during Q3. Last year Q3 was the most profitable and at the same 5,9 % operating margin as this year.

Interesting fact within Willy’s segment is the Eurocash business. It is a chain of seven stores along the border to Norway. The idea is that Norwegian customers cross the border to come to shop in Sweden where the prices are lower. Eurocash is recovering from the lockdowns and according to Axfood is seeing significant growth in revenue.

For online Axfood grew faster than the market with 8,8 % vs market growth of 3 % in Q3.