Axfood: Continued Good Growth with Exceptional Profitability

Regulatory News:

Axfood (STO:AXFO)

Summary of second quarter 2016

· Consolidated net sales amounted to SEK 10,991 m (10,478), an increase of 4.9%.

- Retail sales for Group-owned stores increased by 3.1%.

- Like-for-like sales for Group-owned stores increased by 0.9%.

· Operating profit for the period was SEK 494 m (431), corresponding to an operating margin of 4.5% (4.1%).

· Profit after financial items was SEK 493 m (429) for the period.

· Net profit for the period was SEK 384 m (334), and earnings per share were SEK 1.83 (1.59).

· Axfood expects operating profit for 2016 to exceed profit for 2015.

Summary of interim period January-June 2016

· Consolidated net sales amounted to SEK 21,386 m (20,044), an increase of 6.7%.

- Retail sales for Group-owned stores increased by 5.4%.

- Like-for-like sales for Group-owned stores increased by 3.0%.

· Operating profit for the period was SEK 902 m (760), corresponding to an operating margin of 4.2% (3.8%).

· Profit after financial items was SEK 898 m for the period (757).

· Net profit for the period was SEK 700 m (590), and earnings per share were SEK 3.34 (2.81).

Welcome to the audio cast on Friday July 15, at 2:00 pm CET, when Anders Strålman and Karin Hygrell-Jonsson present the second quarter 2016. The audio cast can also be listened to at axfood.se/en.

Sweden: +46 8 566 42 662

UK: +44 20 300 898 11

US: +1 855 753 22 36

The information herein is such that Axfood AB (publ) is required to make public in accordance with the EU’s Market Abuse Regulation and the Swedish Securities Market Act. The information was submitted for publication, through the adjacent contact person, at 1 p.m. (CET) on 15 July 2016.

At Axfood we work with passion for food and people. Our strength is in developing and driving successful grocery formats in the Swedish market with responsibility for the environment and sustainable development. Axfood includes the Willys and Hemköp chains as well as the Tempo, Handlar’n and Direkten formats, which are proprietor-owned and organized within Axfood Närlivs. B2B sales are sold through the Axfood Snabbgross chain, and wholesaling is conducted through Dagab. Axfood is listed on Nasdaq Stockholm, and the principal owner is Axel Johnson AB. Read more at axfood.se (http://www.axfood.se/).

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