Sweden's Axfood misses Q2 revenue estimates; maintains H2 profitability guidance
Sweden's Axfood misses Q2 revenue estimates; maintains H2 profitability guidance
Overview
Sweden grocery retailer's Q2 revenue rose 0.9% yr/yr, missing analyst expectations
Q2 EBIT missed analyst expectations
Company says food price deflation and negative calendar effect weighed on growth
Outlook
Axfood maintains ambition to achieve City Gross profitability during second half of 2026
Company continues to pursue long-term strategic plans and targeted tactical measures to strengthen growth
Axfood says efforts to optimise logistics and cost-efficiency will continue amid food price deflation
Result Drivers
FOOD PRICE DEFLATION - Co said food price deflation weighed on growth in Q2
HEMKÖP PERFORMANCE - Hemköp delivered 7.4% growth and gained market share, reflecting long-term efforts to strengthen its position
COST-EFFICIENCY MEASURES - Co continued to optimize logistics and support functions to offset effects of food price deflation and higher fuel prices
Company press release: ID:nWkr370VCr
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Miss | SEK 23.2 bln | SEK 23.67 bln (4 Analysts) |
Q2 Adjusted EPS |
| SEK 2.94 |
|
Q2 Net Income |
| SEK 647 mln |
|
Q2 EBIT | Miss | SEK 964 mln | SEK 1.008 bln (4 Analysts) |
Q2 EBIT Margin |
| 4.20% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the food retail & distribution peer group is "buy."
Wall Street's median 12-month price target for Axfood AB is SEK280.00, about 4.8% above its July 14 closing price of SEK267.30
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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Brief: Axfood Q2 EBIT SEK 964 Million Vs. IBES Estimate SEK 1,008 Million