Swedish food retailer Axfood AB on Friday reported higher second-quarter profit, as investments in logistics began to pay off and sales grew at its discount and recently acquired hypermarket chains.
Adjusted operating profit for the quarter rose to 959 million Swedish kronor from 836 million kronor a year earlier, the company said.
Net sales increased 9.3% to 23.0 billion kronor, driven by a 22.9% jump in retail sales.
Excluding the City Gross chain, which was acquired in November 2024, retail sales increased 8.8%.
"It is clear that a growing number of consumers are choosing to shop with us," said President and CEO Simone Margulies.
The company said its discount chain Willys was the primary driver, with sales increasing 10%.
The results mark a positive shift from a year ago, when earnings were impacted by costs related to the City Gross acquisition and the restructuring of its logistics network.
Axfood said its highly automated logistics center in Bålsta is now fully operational, which has improved efficiency and competitiveness.
The company is working to make the City Gross chain profitable by the second half of 2026, it said.
Axfood also announced new efficiency measures that it expects will lead to annual cost savings of approximately 80 million kronor from 2026.
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