Axfood, including the store chains Willys and Hemköp, reports a strong first quarter. The report points to increased revenues and increased profitability.
Operating profit was SEK 817 million for the first quarter. This can be compared with the profit of 695 million in the same period last year. Revenues increased by five percent to SEK 20,252 million.
– We grew fantastically last year and now we grew almost 7 percent, more than the market. It is almost a stronger growth this year because it is completely different inflation figures, says Klas Balkow.
Regarding the ever-hot issue surrounding food prices, he says:
– Somewhere we now see one more significantly more stable situation and an inflation rate that is nowhere near what we have seen before.
However, he does not dare to predict future price levels, it is far too uncertain.
– No one thought we would get this enormous rate of inflation. Prices depend on so many different factors; geopolitical uncertainty, upcoming harvests and climate change. We also have raw materials that are at a significantly higher level than a few years ago.
Axfood’s CEO notes however, that the tough economic situation is still noticeable. Consumers are looking for affordable goods and extra prices.
– There is still a focus on price value.
On the other hand, it is seen that fruit and vegetables are traded to a greater extent. Statistics Norway stated in April that the prices of fruit and vegetables in particular have fallen recently.
– We hope that this trend will continue, says Klas Balkow.
When it comes to the sale of organic goods, you can see that the decline that had been has stopped somewhat.
– It’s not going down anyway, it’s an improvement.
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