Axfood continues to increase its sales more than the market. Through appreciated store concepts such as Willys and Hemköp. City Gross, which was acquired in 2024, which is undergoing a restructuring with plans to be profitable in the second half of 2026. In the fourth quarter of 2025, City Gross delivered a profit, but you have to bear in mind that it is a special quarter. Partly due to strong food holidays in general for the grocery trade but also specifically for supermarkets that have a certain amount of Christmas gift trade.
The dividend is proposed to be SEK 9. An increase of 2.8 percent compared to the previous year (8.75).
The report seems to be in line with market expectations. The operating margin for 2025 ended up at 4 percent. Slightly higher than in 2024 when it was 3.9 percent but well below the company’s target of 4.5 percent. Axfood is investing large sums in developing logistics and automation. In the long term, these investments will lead to increased efficiency.
Turnover increased by just over 6 percent to SEK 89,152 million.
Earnings per share were SEK 10.84, an increase of 6.7 percent compared to the previous year.
The last price paid for the share was SEK 311 and that is a high valuation. as usual for Axfood. The company performs very strongly in its sector, significantly better key figures than competitors such as Ahold and Costco. In addition, they have a valuation premium because they are the only grocery company on Swedish stock exchange.
This is a solid report. Axfood is doing well. The market’s expectations are for significantly higher profits in the coming years, and that is rather what the company is valued on than this year’s results. The Factset analyst estimate believes in a profit of a little over SEK 14 per share for 2027.
I like Axfood and will continue to add more, slowly. Every year market gives opportunities in the form of major red days, for us to buy more, of these valuable companies.
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