Axfood

Quarterly Report • Oct 23, 2025

Growth in all segments and increased market shares

Third quarter summary

• Net sales increased 6.6% to SEK 22,286 m (20,902).
• Retail sales increased 19.5% to SEK 19,625 m (16,427). Excluding City Gross, retail sales increased 6.2%.
• Operating profit amounted to SEK 1,059 m (1,007) including items affecting comparability of SEK -39 m (—). The operating margin was 4.8% (4.8).
• Adjusted operating profit amounted to SEK 1,099 m (1,007) and the adjusted operating margin to 4.9% (4.8).
• Net profit for the period amounted to SEK 727 m (715) and earnings per share before dilution to SEK 3.30 (3.26).
• In September, a dividend of SEK 4.25 per share was paid out, the second part of the shareholder dividend of SEK 8.75 per share (8.50).
• Axfood plans for a new highly automated logistics centre to be completed in 2030 which will ensure higher capacity and efficiency in southern Sweden. During the quarter letters of intent were signed with the Municipality of Kungsbacka to locate the logistics centre to Frillesås, and with Witron to use the company's automation technology.

Summary January - September

• Net sales increased 6.6% to SEK 66,321 m (62,197).
• Retail sales increased 19.3% to SEK 58,736 m (49,217). Excluding City Gross, retail sales increased 6.0%.
• Operating profit amounted to SEK 2,712 m (2,661) including items affecting comparability of SEK -102 m (—). The operating margin was 4.1% (4.3).
• Adjusted operating profit amounted to SEK 2,814 m (2,661) and the adjusted operating margin to 4.2% (4.3).
• Net profit for the period amounted to SEK 1,802 m (1,858) and earnings per share before dilution to SEK 8.24 (8.54).

19.5%

6.6%

Retail sales growth in the third quarter 2025 Net sales growth in the third quarter 2025

Significant events during the quarter

• Volume growth and continued momentum for Willys, Hemköp and Snabbgross
• Positive trend in City Gross' like-for-like growth
• Letters of intent signed for new highly automated logistics centre in Kungsbacka

Key ratios	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Net sales, SEK m	22,286	20,902	6.6%	66,321	62,197	6.6%	88,181	84,057
Retail sales, SEK m	19,625	16,427	19.5%	58,736	49,217	19.3%	77,572	68,052
Operating profit, SEK m	1,059	1,007	5.2%	2,712	2,661	1.9%	3,341	3,290
Operating profit excl. items affecting comparability, SEK m1)	1,099	1,007	9.0%	2,814	2,661	5.8%	3,586	3,433
Operating margin, %	4.8	4.8	-0.1	4.1	4.3	-0.2	3.8	3.9
Operating margin excl. items affecting comparability, %1)	4.9	4.8	0.1	4.2	4.3	0.0	4.1	4.1
Net profit for the period, SEK m	727	715	1.6%	1,802	1,858	-3.0%	2,163	2,219
Earnings per share before dilution, SEK	3.30	3.26	1.2%	8.24	8.54	-3.5%	9.86	10.16
Earnings per share before dilution excl. items affecting comparability, SEK1)	3.45	3.26	5.6%	8.61	8.54	0.9%	10.89	10.82
Cash flow from operating activities, SEK m	1,352	1,013	33.5%	4,513	3,587	25.8%	6,385	5,459
Equity ratio, %	20.4	23.7	-3.3	20.4	23.7	-3.3	20.4	20.9
Net working capital as a share of net sales R12, %	-3.3	-3.5	0.2	-3.3	-3.5	0.2	-3.3	-3.4
Return on capital employed R12, %	16.4	19.6	-3.2	16.4	19.6	-3.2	16.4	16.6
Sustainability-labelled products, share of sales, %	26.7	26.6	0.2	27.1	27.1	0.0	26.8	27.2

¹⁾ See Note 8 Items affecting comparability for more information.

For further information, please contact: Alexander Bergendorf, Head of Investor Relations, tel. + 46 73 049 18 44

The information herein is such that Axfood AB (publ) is required to make public in accordance with the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person listed above, at 7:00 a.m. CET on 23 October 2025.

This interim report is an English translation of the Swedish original. In the event of any discrepancies, the Swedish version shall govern.

Axfood will present the interim report for the third quarter of 2025 in a webcast at 9:30 a.m. CET, today, Thursday, 23 October 2025. The report will be presented by Simone Margulies, President and CEO, and Anders Lexmon, CFO. A link to the webcast is available at axfood.com. A link to register to participate via conference call is also available at axfood.com. Upon registration, a telephone number and conference ID for the conference call will be provided.

CEO message

Axfood summarises another strong quarter with high customer traffic, volume growth and increased market shares, as well as positive earnings trends in all operating segments. We continue to invest in strategically important areas in order to become even more efficient and further improve our competitiveness. In recent years, our logistics structure has been developed to enable continued profitable growth, and during the quarter we announced our plans to establish a new, highly automated logistics centre in Kungsbacka with the aim of increasing our capacity and efficiency also in southern Sweden.

As in previous quarters, the third quarter of the year was characterised by intense market competition and high price awareness among consumers. We are successfully navigating this changing and dynamic climate by leveraging the strength of our business model of strong and distinctive concepts working in collaboration. Thanks to affordable and attractive offerings, more and more consumers are choosing to shop with us. Having maintained our momentum, we delivered a strong performance in the quarter and gained market shares.

High customer traffic, volume growth and increased market shares During the third quarter, Axfood's retail sales increased approximately 19% and just over 6% excluding City Gross, while market growth amounted to slightly more than 5%. This performance was driven both by Willys and by Hemköp, which reported higher volumes as a result of positive customer traffic and customer loyalty.

With its position as Sweden's leading discount grocery chain, and a highly attractive concept among households, Willys is continuing to develop its offering. Among other initiatives, existing stores are rapidly being upgraded to the new Willys 5.0 store concept, and the rate of new store establishments is also accelerated in the coming years, with the aim of opening at least ten new stores each year. Hemköp, which operates in the traditional grocery segment, is also modernising stores at a rapid rate in order to enhance the customer meeting. Its offering is continuously being developed, with a focus on price value, fresh products and meal solutions. Our restaurant wholesaler, Snabbgross, delivered growth of 6% in the quarter.

City Gross was acquired nearly a year ago to create new growth opportunities for Axfood. The organisation is following a clear plan and has a comprehensive development agenda in place in order to reverse the store chain's weak development in recent years. We are seeing positive trends in like-for-like growth and cost levels as a result of our initiatives. City Gross has excellent potential as a pure-play hypermarket operator, an attractive segment that is continuing to account for a growing share of the market. With a long-term perspective, we leverage our knowledge and experience to develop and strengthen the chain for the future.

Positive earnings trends in all segments

With increased loyalty and growth in the store chains, earnings improved in all operating segments. In addition to efficiency and cost focus in our base operations – with respect to both logistics and our central processes and ways of working – the operating margin for the Group as a whole increased.

Development of logistics in southern Sweden

Dagab is continuing its efforts to optimise the flow of goods and streamline the Group's new logistics structure. The logistics centre in Bålsta, the fruit and vegetable warehouse in Landskrona and the recently expanded high-bay warehouse in Backa are all clearly contributing to the Group's capacity and efficiency. We have also initiated work to establish a new highly automated logistics centre in Kungsbacka which will strengthen the Group's product supply in southern Sweden. We are building for the future, and this new logistics solution will create the conditions for us to continue to grow and become even more competitive.

Initiatives to accelerate the green transition

The Food 2030 report, Axfood's proposal for a more sustainable food strategy for Sweden, was presented during the quarter. As a leading player in food retail, we want to take the lead in sustainable development, and this report, which contains 105 solutions for promoting sustainable food production and consumption, is an important part of our social advocacy and work to drive industry issues.

As a Group, we also contribute to accelerating the green transition in society. The phase-out of fossil fuels in our own and procured transports continued to reduce our emissions during the quarter, and our new solar park in Hallstavik in the Uppland region is now fully operational. We also continued to launch innovative new products focused on improved sustainability and health.

Leveraging the strength of our business model to continue to challenge and grow

Our performance in the third quarter demonstrates the strength of our business model, with higher growth than the market and improved earnings in all operating segments. The development shows how we with our different concepts and brands drives loyalty and growth in all segments of the market – both organically and through expansion. With our integrated value chain, we create competitive advantages and efficiency in base operations. Together with a high rate of development, a strong corporate culture, and highly engaged employees, I am convinced that we are poised to continue to challenge and strengthen our market positions also in the years ahead.

Simone Margulies President and CEO Axfood

With continued momentum, Axfood summarises another strong quarter with high customer traffic, volume growth and increased market shares.

Swedish food retail

Food retail is an important part of Swedish industry and a large employer, providing a livelihood for more than 100,000 people. In total, there are more than 3,000 food retail stores across Sweden. The food retail market is relatively unaffected by economic fluctuations, with growth driven largely by population growth and inflation.

According to the Swedish Food Retail Index, total food retail sales growth during the third quarter of 2025 amounted to 5.4%. The calendar effect was 0.1%. According to Statistics Sweden, food prices increased at an annualised rate of 4.4%, mainly driven by higher prices for coffee, chocolate, dairy products and beef. Compared with the second quarter, food prices were relatively stable. Sales growth for the market in physical stores amounted to 5.2% and in e-commerce to 8.4%. The share of food retail sales attributable to e-commerce was 3.8%.

Growth in Axfood's online sales compared with the Swedish Food Retail Index

Food retail market segments in 2024

Market size (excluding VAT) in 2024 SEK 302bn

Source: Axfood's estimates

Group

Net sales and retail sales

Third quarter

Net sales increased 6.6% and totalled SEK 22,286 m (20,902). Retail sales increased 19.5% and totalled SEK 19,625 m (16,427). Excluding the acquired City Gross, growth was 6.2%, which was more than the market growth of 5.4%. Volume growth mainly contributed to this increase. Like-for-like sales increased 4.3% driven by a positive development in all store chains.

Online sales increased 11.3% and totalled SEK 886 m (796), which compares to market growth of 8.4%. The increase was 5.6% excluding City Gross and the discontinued business Middagsfrid. The share of retail sales attributable to e-commerce was 4.5% (4.8), which was higher than the e-commerce penetration on the market of 3.8%.

The share of retail sales attributable to private label products was 31.5% (32.6). Excluding City Gross, the share of sales increased to 33.1% (32.6).

January - September

Net sales increased 6.6% and totalled SEK 66,321 m (62,197). Retail sales increased 19.3% and totalled SEK 58,736 m (49,217). Excluding City Gross, retail sales increased 6.0%, which compares to the market growth of 4.5%. Like-for-like sales grew 4.4%.

Online sales increased 9.0% and totalled SEK 2,850 m (2,614) which compares to the market's growth of 6.0%. The increase was 3.8% excluding City Gross and Middagsfrid. The share of retail sales attributable to e-commerce was 4.9% (5.3), which was higher than the e-commerce penetration on the market of 4.2%.

The share of retail sales attributable to private label products was 32.4% (32.8). Excluding City Gross, the share of sales increased to 33.4% (32.8).

Read about the performance of each operating segment on pages 9-13.

Axfood interim report 1 January – 30 September 2025 5

Growth, %

Growth, %

Share of external net sales by operating segment

Net sales per segment

SEK m	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Willys	12,074	11,364	6.2%	36,111	33,914	6.5%	47,973	45,775
Hemköp	1,995	1,863	7.1%	6,133	5,776	6.2%	8,235	7,878
City Gross1)	2,178	—	—	6,557	—	—	8,202	1,646
Snabbgross	1,609	1,518	6.0%	4,454	4,213	5.7%	5,774	5,533
Dagab	19,984	19,090	4.7%	59,834	56,765	5.4%	79,658	76,589
Joint-Group	392	377	3.9%	1,172	1,131	3.7%	1,561	1,519
Internal sales between segments
Dagab	-15,579	-12,992	19.9%	-46,839	-38,636	21.2%	-61,767	-53,565
Joint-Group/other	-368	-320	15.1%	-1,101	-964	14.2%	-1,456	-1,319
Total	22,286	20,902	6.6%	66,321	62,197	6.6%	88,181	84,057

¹⁾ City Gross is included from the acquisition date 1 November 2024.

Retail sales

SEK m	Q3 2025	Q3 2024	Change	Change like-for-like stores	9 mos. 2025	9 mos. 2024	Change	Change like-for-like stores	R12	Full-year 2024
Willys	12,076	11,366	6.2%	4.1%	36,116	33,918	6.5%	4.5%	47,979	45,782
Hemköp1)	5,373	5,060	6.2%	4.8%	16,069	15,298	5.0%	4.1%	21,413	20,642
City Gross2)	2,177	—	—	—	6,551	—	—	—	8,180	1,629
Total	19,625	16,427	19.5%	4.3%	58,736	49,217	19.3%	4.4%	77,572	68,052
Total excluding City Gross	17,449	16,427	6.2%	4.3%	52,185	49,217	6.0%	4.4%	69,392	66,424

¹⁾ Refers to Hemköp (Group-owned and retailer-owned) and Tempo.

²⁾ City Gross is included from the acquisition date 1 November 2024.

Operating profit

Third quarter

Operating profit amounted to SEK 1,059 m (1,007). Operating profit includes items affecting comparability totalling SEK -39 m (—) attributable to structural measures in City Gross. The operating margin was 4.8% (4.8).

Operating profit excluding items affecting comparability amounted to SEK 1,099 m (1,007). The increase was mainly driven by Willys and Dagab with positive effects from increased sales volumes and a lower cost level in logistics. The earnings development in Hemköp and Snabbgross was also strong. City Gross, which was acquired on 1 November 2024, had a negative impact on consolidated operating profit. The operating margin excluding items affecting comparability amounted to 4.9% (4.8).

Net financial items for the period amounted to SEK -135 m (-95). The change was mainly due to higher interest expenses for leasing and increased debt in conjunction with the acquisition of City Gross. Profit after financial items amounted to SEK 924 m (912) and net profit for the period to SEK 727 m (715).

January - September

Operating profit amounted to SEK 2,712 m (2,661). Operating profit included items affecting comparability totalling SEK -102 m (—). The operating margin was 4.1% (4.3).

Operating profit excluding items affecting comparability amounted to SEK 2,814 m (2,661). The operating margin excluding items affecting comparability was 4.2% (4.3).

Net financial items amounted to SEK -415 m (-282). The change was mainly due to higher interest expenses for leasing and increased debt in conjunction with the acquisition of City Gross. Profit after financial items amounted to SEK 2,297 m (2,379) and net profit for the period to SEK 1,802 m (1,858).

Read about the performance of each operating segment on pages 9-13.

Axfood interim report 1 January – 30 September 2025 6

Adjusted operating profit and adjusted operating margin

Share of operating profit by operating segment

Operating profit per segment excluding items affecting comparability

SEK m	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Willys	587	556	5.5%	1,647	1,549	6.4%	2,091	1,992
Hemköp	103	94	8.6%	294	282	4.3%	355	343
City Gross1)	-4	—	—	-104	—	—	-144	-40
Snabbgross	101	85	18.3%	222	196	13.1%	278	253
Dagab	341	312	9.3%	926	828	11.9%	1,255	1,156
Joint-Group	-28	-40	29.3%	-171	-194	11.8%	-249	-271
Operating profit excl. items affecting comparability	1,099	1,007	9.0%	2,814	2,661	5.8%	3,586	3,433
Items affecting comparability2)	-39	—		-102	—		-245	-143
Operating profit	1,059	1,007	5.2%	2,712	2,661	1.9%	3,341	3,290
Net financial items	-135	-95		-415	-282		-538	-405
Profit after financial items	924	912	1.4%	2,297	2,379	-3.4%	2,803	2,885

¹⁾ City Gross is included from the acquisition date 1 November 2024.

Operating margin per segment excluding items affecting comparability

%	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Willys	4.9	4.9	0.0	4.6	4.6	0.0	4.4	4.4
Hemköp	5.1	5.1	0.1	4.8	4.9	-0.1	4.3	4.4
City Gross1)	-0.2	—	—	-1.6	—	—	—	-2.4
Snabbgross	6.3	5.6	0.7	5.0	4.7	0.3	4.8	4.6
Dagab	1.7	1.6	0.1	1.5	1.5	0.1	1.6	1.5
Operating margin excl. items affecting comparability	4.9	4.8	0.1	4.2	4.3	0.0	4.1	4.1
Operating margin	4.8	4.8	-0.1	4.1	4.3	-0.2	3.8	3.9

¹⁾ City Gross is included from the acquisition date 1 November 2024.

²⁾ Refers to structural costs in City Gross in Q3 2025 and accumulated. In Q4 2024 the item referred to the revaluation of the previous minority interest in City Gross. See Note 8 Items affecting comparability for more information.

Capital expenditures

Total capital expenditures in intangible assets and property, plant and equipment during the January - September period amounted to SEK 1,265 m (1,058). Including acquisitions of operations, total capital expenditures amounted to SEK 1,267 m (1,058). Investments in intangible and tangible fixed assets consist primarily of store modernisations, new store establishments and IT investments. Depreciation as share of net sales increased compared to the prior year primarily as a result of completion of the Bålsta logistics centre ramp-up.

Investments (incl. acquisitions, excl. IFRS 16)

Investments (incl. acquisitions, excl. IFRS 16)

SEK m	Q3 2025	Q3 2024	9 mos. 2025	9 mos. 2024
Willys	152	115	467	338
Hemköp	107	65	223	101
City Gross1)	7	—	24	—
Snabbgross	6	6	30	26
Dagab	72	88	231	309
Joint-Group	79	70	292	284
Total investments (cash flow)	423	344	1,267	1,058

¹⁾ City Gross is included from the acquisition date 1 November 2024.

Financial position and cash flow

Cash flow from operating activities amounted to SEK 4,513 m (3,587) during the January - September period. Changes in net working capital had an impact of SEK -334 m (-969) on cash flow during the period. Net working capital in the prior year period was mainly impacted by a more significant negative calendar effect. Net capital expenditures had an impact of SEK -1,296 m (-1,135) on cash flow. Cash flow from financing activities amounted to SEK -3,618 m (-2,854).

Net working capital (rolling 12 months) amounted to SEK -2,880 m, which compares to SEK -2,875 m at 31 December 2024. Net working capital as a share of net sales amounted to -3.3% compared with -3.4% as of 31 December 2024.

Cash and cash equivalents held by the Group amounted to SEK 334 m compared with SEK 735 m at 31 December 2024. Interest-bearing liabilities and provisions totalled SEK 15,947 m compared with SEK 15,596 m at 31 December 2024. Interest-bearing net debt amounted to SEK 15,613 m compared with SEK 14,861 m at 31 December 2024.

The return on capital employed was 16.4%, compared with 16.6% at 31 December 2024.

The equity ratio was 20.4% compared with 20.9% at 31 December 2024.

Net debt/EBITDA was 2.1 compared with 2.2 at 31 December 2024. Net debt/EBITDA excluding IFRS 16 was 0.7 compared with 0.6 at 31 December 2024.

Since 2019, Axfood has had financing through a revolving credit facility amounting to SEK 3,500 m. In July 2025, agreements were entered into with Handelsbanken, SEB and Swedbank regarding a new revolving credit facility that replaces the previous one. The new credit facility amounts to SEK 4,000 m of which SEK 1,000 m has a maturity date in July 2028 and SEK 3,000 m has a maturity date in July 2030.

Cash flow summary

SEK m	Q3 2025	Q3 2024	9 mos. 2025	9 mos. 2024
Cash flow from operating activities	1,352	1,013	4,513	3,587
Cash flow from investing activities	-421	-355	-1,296	-1,135
Cash flow from financing activities	-971	-1,015	-3,618	-2,854
Cash flow for the period	-40	-358	-401	-403

Capital employed

Net working capital

Net debt, SEK m Net debt/EBITDA multiple Net debt/EBITDA multiple ex. IFRS 16

Sustainability

For Axfood, sustainable development is about seeing the whole picture and the relentless pursuit of improvements. Sustainability is an integral part of the Group's operations and encompasses the entire food supply chain, taking into account the environment, animal welfare, and the people who produce, sell and consume food. Axfood aims to be a positive force in society and the strongest driving force for sustainable food in Sweden.

Axfood aims to take the lead in promoting a sustainable food system by influencing decision-makers, leading the way through its own initiatives and driving important industry issues. The Food 2030 report, Axfood's proposal for a sustainable food strategy for Sweden – with 105 recommendations for industry, politicians and authorities – was published during the third quarter. Now in its ninth edition, the report aims to promote more sustainable food consumption and production. The recommendations in the report include reducing or eliminating VAT on sustainability-labelled food, initiatives to promote organic food, banning PFAS chemicals, regulating sugar and salt levels in food, and compensating farmers for extended grazing periods.

Food

Axfood strives to make it easier for consumers to make sustainable and healthy choices through a broad and affordable assortment of sustainability-labelled products. The goal is also to promote more sustainable production and consumption of food.

During the third quarter, the share of sales attributable to sustainability-labelled products increased slightly to 26.7% (26.6), mainly as a result of an increased share of sales of fruit and vegetables and an increased share of sales of certified salmon. However, the share of sales attributable to organic products decreased to 3.8% (4.2), mainly due to an insufficient supply of organic beef and organic dairy products. This shortage also meant that the share of sales attributable to KRAV-certified meat declined to 2.1% (2.6). Hemköp is the industry leader with regards to organic products and offers, for example, double bonus points on purchases of organic and KRAV-certified products for members of the Klubb Hemköp loyalty programme.

During the quarter, new steps were taken to promote innovative, sustainable and healthy food. To widen the assortment of hybrid products under the Garant brand, a fresh hybrid sausage was launched during the quarter. The sausage, which combines beef and Swedish vegetables, has half the carbon footprint of sausages made entirely of beef. During the summer, only fermented herring – or surströmming as it is called in Swedish – from small-scale, coastal fisheries was included in the assortment, strengthening local fisheries and promoting more sustainable use of Baltic Sea resources. As part of Framtidens fisk, an initiative to develop more sustainable and circular solutions for fish farming, Hemköp and Urban Deli introduced farmed Swedish rainbow trout raised on feed made from residual products – a solution that addresses the fact that feed is one of the main environmental impacts of fish farming.

Environment

Axfood strives to reduce the climate impact of food production as far as possible. Its climate targets encompass both its own and suppliers' operations as well as reducing the carbon footprint per kg of food sold.

In the third quarter, the carbon footprint per kg of food sold was 1.95 kg CO2eq (1.99). This decrease was primarily due to a lower share of sales attributable to minced beef.

Axfood aims to fully phase out fossil fuel and to convert the company's own and procured transports to renewable fuel or electricity by the end of 2025. During the quarter, emissions from own transports decreased to approximately 6.7 kg CO2eq (7.0) per tonne of delivered goods. A revision of the emissions factor for liquid biogas had a negative impact on the outcome, as liquid biogas accounts for roughly 40% of the fuel mix. Using

the previous emissions factor, the outcome for the quarter would have amounted to 5.0 kg CO2eq per tonne of delivered goods, corresponding to a year-on-year reduction of 29%. Fossil diesel accounts for only about 1% of the total fuel mix.

People

Axfood aspires to be a positive force in society and is working to improve health, work and social conditions throughout the food supply chain, which includes customers, agricultural and production workers, and its own employees.

Social audits are conducted in risk countries in order to ensure compliance with Axfood's Code of Conduct among suppliers of private label products. Of a total of 82 audits conducted during the quarter, all but one – or 98.8% (100.0) – had acceptable results. The unsuccessful audit pertained to a bulgur sub-supplier in Turkey. The remarks from the audit have been followed up with an action plan.

Axfood is committed to diversity and inclusion, and believes that a mix of skills and perspectives yields better results. Gender balance in senior positions is an important part of this work. The share of women/men in management positions during the first nine months was 53.0/47.0% (50.8/49.2) and thus remained in line with the long-term target.

For more information on Axfood's sustainability work and key ratios, see the website and the 2024 Annual and Sustainability Report.

Sustainability key ratios	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Sustainability-labelled products, share of sales, %	26.7	26.6	0.2	27.1	27.1	0.0	26.8	27.2
Organic products, share of sales, %	3.8	4.2	-0.4	4.0	4.4	-0.4	4.0	4.2
KRAV-certified meat, share of sales, %	2.1	2.6	-0.5	2.2	2.8	-0.6	2.3	2.7
Share of approved social audits, %	98.8	100.0	-1.2	97.9	98.3	-0.4	97.6	97.9
Kg CO2e per kg of food sold	1.95	1.99	-0.04	1.94	1.98	-0.04	1.97	2.01
Kg CO2e/tonne of transported goods	6.7	7.0	-0.3	7.2	8.8	-1.6	7.0	7.9
Share of women/men in management positions, %	—	—	—	53.0/47.0	50.8/49.2	2.2/-2.2	—	52.2/47.8

Operating segments

Willys

Willys is the leading discount grocery chain in food retail, offering a broad range of products in both Group-owned stores and online. With the ambition to offer Sweden's cheapest bag of groceries, Willys aspires to lead and develop the discount segment. The operating segment Willys also includes the partly owned cross-border grocery chain Eurocash.

Third quarter

Net sales increased 6.2% and totalled SEK 12,074 m (11,364). Retail sales increased 6.2%, which was more than the market. Growth in like-for-like sales amounted to 4.1%. The development was primarily attributable to higher volumes as a result of an increased number of customer visits and new store establishments. A higher average ticket value also had a positive impact on the sales development.

Willys is Sweden's most recommended grocery food retail chain and has a unique position in the market through its combination of low prices, a comprehensive range, modern stores and online shopping. The rate of increase of new members in the Willys Plus loyalty programme continued to be on a high level, and the total number of members amounted to approximately 3.9 million (3.7) at the end of the quarter. In addition, loyalty among existing members remained strong.

The number of stores in the operating segment amounted to 256 at the end of the quarter. During the quarter, one new Willys store was established, and in addition one City Gross store was converted to Willys.

Operating profit totalled SEK 587 m (556), which corresponds to an operating margin of 4.9% (4.9). The increase in operating profit was primarily driven by the increased sales volume, a stable gross margin development, and good cost control.

January - September

Net sales totalled SEK 36,111 m (33,914), an increase of 6.5%. Growth in retail sales was 6.5%. Growth in like-for-like sales was 4.5%. Operating profit amounted to SEK 1,647 m (1,549), which corresponds to an operating margin of 4.6% (4.6).

Axfood interim report 1 January – 30 September 2025 9

Willys key ratios	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Net sales, SEK m	12,074	11,364	6.2%	36,111	33,914	6.5%	47,973	45,775
Operating profit, SEK m	587	556	5.5%	1,647	1,549	6.4%	2,091	1,992
Operating margin, %	4.9	4.9	0.0	4.6	4.6	0.0	4.4	4.4
Retail sales, SEK m	12,076	11,366	6.2%	36,116	33,918	6.5%	47,979	45,782
Like-for-like sales growth, %	4.1	2.4	1.7	4.5	3.1	1.4	—	3.1
Number of stores	—	—	—	256	244	12	—	248
of which, Willys	—	—	—	188	182	6	—	184
of which, Willys Hemma	—	—	—	61	55	6	—	57
of which, Eurocash	—	—	—	7	7	—	—	7
Stores offering online shopping	—	—	—	171	163	8	—	166
Private label products, share of sales, %	35.0	34.6	0.4	35.4	34.7	0.7	35.0	34.6
Sustainability-labelled products, share of sales, %	27.9	27.4	0.5	28.3	28.0	0.3	28.1	28.3
Organic products, share of sales, %	3.6	3.9	-0.3	3.7	4.1	-0.4	3.7	4.0
Average number of employees	—	—	—	7,632	7,353	279	—	7,273
Share of women/men in management positions, %	—	—	—	57.9/42.1	57.3/42.7	0.6/-0.6	—	58.4/41.6

Hemköp

Hemköp offers a broad, attractively priced assortment with a rich offering of fresh products. Through Group-owned stores, retailer-owned stores and an online business, Hemköp inspires good meals. The Hemköp operating segment also includes Tempo, a mini-mart format comprising retailer-owned stores.

Third quarter

Net sales (including franchise fees) increased 7.1% and totalled SEK 1,995 m (1,863). Retail sales (including Tempo) increased 6.2%, which was more than the market. Growth in like-for-like sales amounted to 4.8%. Higher volumes contributed to this development as a result of an increased number of customer visits. A higher average ticket value also impacted the sales development positively.

Hemköp is continuing to strengthen its position with a focus on price value, fresh products and meal solutions. Hemköp is also investing in modernisations of existing stores and strengthening its sustainability profile. In total, the number of members in the Klubb Hemköp loyalty programme amounted to approximately 2.1 million (2.0) at the end of the quarter.

The number of stores in the operating segment amounted to 326 at the end of the quarter. Two retailer-owned Hemköp stores and one retailer-owned Tempo were established during the quarter. In addition, a conversion of a Hemköp store from retailer-owned to group-owned was completed.

Operating profit amounted to SEK 103 m (94), which corresponds to an operating margin of 5.1% (5.1). The increase in operating profit was primarily driven by the increased sales, a stable gross margin development, and good cost control.

January - September

Net sales totalled SEK 6,133 m (5,776), an increase of 6.2%. Growth in retail sales was 5.0%. Growth in like-for-like sales amounted to 4.1%. Operating profit amounted to SEK 294 m (282), which corresponds to an operating margin of 4.8% (4.9).

Axfood interim report 1 January – 30 September 2025 10

Hemköp key ratios	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Net sales, SEK m	1,995	1,863	7.1%	6,133	5,776	6.2%	8,235	7,878
Operating profit, SEK m	103	94	8.6%	294	282	4.3%	355	343
Operating margin, %	5.1	5.1	0.1	4.8	4.9	-0.1	4.3	4.4
Retail sales, SEK m	5,373	5,060	6.2%	16,069	15,298	5.0%	21,413	20,642
Like-for-like sales growth, %	4.8	4.5	0.3	4.1	5.4	-1.3	—	5.1
Number of stores	—	—	—	326	326	0	—	326
of which, Group-owned Hemköp/Tempo stores	—	—	—	68	67	1	—	68
of which, retailer-owned Hemköp stores	—	—	—	133	133	0	—	134
of which, retailer-owned Tempo stores	—	—	—	125	126	-1	—	124
Hemköp stores offering online shopping	—	—	—	66	67	-1	—	67
Private label products, share of sales, %	26.6	26.3	0.3	27.2	27.0	0.2	27.0	26.9
Sustainability-labelled products, share of sales, %	28.0	26.6	1.4	28.1	26.7	1.4	27.6	27.2
Organic products, share of sales, %	5.3	5.9	-0.6	5.6	6.1	-0.5	5.6	6.1
Average number of employees	—	—	—	1,727	1,691	36	—	1,697
Share of women/men in management positions, %	—	—	—	51.4/48.6	48.3/51.7	3.1/-3.1	—	49.3/50.7

Third quarter

Net sales amounted to SEK 2,178 m and retail sales to SEK 2,177 m. Compared to the prior year period, growth in total retail sales amounted to 0.6%. Like-for-like growth was 3.2%. Total growth was mainly explained by store closures.

The number of stores amounted to 40 at the end of the quarter. Operating profit amounted to SEK -43 m, which corresponds to an operating margin of -2.0%. Operating profit includes items affecting comparability totalling SEK -39 m attributable to structural measures including discontinuation costs for the store in Kungens Kurva in Stockholm, reorganisation costs, and sales clearance within the non-food assortment. Operating profit excluding items affecting comparability totalled SEK -4 m, which corresponds to an operating margin of -0.2%. The earnings development was impacted by effects from structural measures and efforts to streamline operations. The positive like-for-like growth also contributed to the development.

City Gross increases Axfood's reach and gives the Group presence in the hypermarket segment, the fastest-growing segment in the market after discount. Axfood's knowledge and experience provide the conditions to further develop and strengthen City Gross. This work proceeds according to plan and includes a series of improvement initiatives, with the aim of achieving profitability at some point in the second half of 2026 followed by a gradual improvement in profitability. These initiatives include developing the store concept and a review of the customer offering. In August, the new communications concept and the improved, more affordable customer offering was further developed. To streamline operations, a chain management structure is being implemented. Structural measures are also implemented at a handful of stores in 2025, mainly pertaining to conversions to other concepts. The City Gross store in Borlänge was closed during the quarter ahead of concept change to Willys.

January - September

Net sales amounted to SEK 6,557 m and retail sales to SEK 6,551 m. Compared to the prior year period, growth in total retail sales was -0.1%. Like-for-like growth was 1.2%. Operating profit amounted to SEK -206 m, which corresponds to an operating margin of -3.1%. Operating profit excluding items affecting comparability totalled SEK -104 m, which corresponds to an operating margin of -1.6%.

On 1 November 2024 the acquisition of City Gross Sverige AB was completed. Reported figures for 2024 pertains to 1 Nov. - 31 Dec. Information presented for periods prior to the acquisition date is not consolidated and not IFRS adjusted.

City Gross key ratios1)	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	Full-year 20242)
Net sales, SEK m	2,178	—	—	6,557	—	—	1,646
Operating profit, SEK m	-43	—	—	-206	—	—	-40
Operating profit excl. items affecting comparability, SEK m3)	-4	—	—	-104	—	—	-40
Operating margin, %	-2.0	—	—	-3.1	—	—	-2.4
Operating margin excl. items affecting comparability, %3)	-0.2	—	—	-1.6	—	—	-2.4
Retail sales, SEK m	2,177	—	—	6,551	—	—	1,629
Like-for-like sales growth, %	—	—	—	—	—	—	—
Number of stores	—	—	—	40	—	—	42
Stores offering online shopping	—	—	—	40	—	—	42
Private label products, share of sales, %	21.9	—	—	21.8	—	—	20.0
Sustainability-labelled products, share of sales, %	22.4	—	—	22.3	—	—	20.6
Organic products, share of sales, %	3.0	—	—	3.1	—	—	3.0
Average number of employees4)	—	—	—	1,917	—	—	1,828
Share of women/men in management positions, %	—	—	—	58.2/41.8	—	—	55.5/44.5

¹⁾ Data for City Gross is included from the acquisition date 1 November 2024. Comparison figures are not presented for periods prior to the acquisition date.

²⁾ Refers to the period 1 November 2024 - 31 December 2024.

³⁾ See Note 8 Items affecting comparability for more information.

⁴⁾ For the full year 2024, the reported average number of employees refers to the annual working hours for the period 1 January - 31 December. For the consolidated period the average number of employees in relation to annual working hours was 305 persons.

Snabbgross

Snabbgross is one of Sweden's leading restaurant wholesalers with a customer base of restaurants, fast food operators and cafés. Snabbgross offers personal service, accessibility, and quality at its stores and online. The Snabbgross operating segment also includes the concept Snabbgross Club, which is directed at consumers.

Third quarter

Net sales increased 6.0% and totalled SEK 1,609 m (1,518). Growth in like-for-like sales amounted to 6.0%. Higher volumes contributed to this development as a result of an increased number of customer visits. A higher average ticket value also impacted the sales development positively.

The number of active B2B customers continued to increase and amounted to approximately 120,000 (112,000) at the end of the quarter. In addition, the trend in B2C sales through Snabbgross Club was strong. The number of registered members in Snabbgross Club has continued to increase and amounted to approximately 160,000 (108,000) at the end of the quarter.

The number of stores in the operating segment amounted to 31 at the end of the quarter.

Operating profit amounted to SEK 101 m (85), which corresponds to an operating margin of 6.3% (5.6). The increase in operating profit was primarily driven by the increased sales, a stable gross margin, and good cost control.

January - September

Net sales totalled SEK 4,454 m (4,213), an increase of 5.7%. Growth in like-for-like sales amounted to 5.8%. Operating profit amounted to SEK 222 m (196), which corresponds to an operating margin of 5.0% (4.7).

Net sales and growth

Axfood interim report 1 January – 30 September 2025 12

Net sales, SEK m Growth, %

Operating profit and operating margin

Operating profit, SEK m Operating margin, %

Snabbgross key ratios	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Net sales, SEK m	1,609	1,518	6.0%	4,454	4,213	5.7%	5,774	5,533
Operating profit, SEK m	101	85	18.3%	222	196	13.1%	278	253
Operating margin, %	6.3	5.6	0.7	5.0	4.7	0.3	4.8	4.6
Like-for-like sales growth, %	6.0	4.9	1.1	5.8	2.7	3.1	—	3,3
Number of stores	—	—	—	31	31	—	—	31
of which, Snabbgross	—	—	—	19	21	-2	—	21
of which, Snabbgross Club	—	—	—	12	10	2	—	10
Sustainability-labelled products, share of sales %	20.4	20.2	0.3	20.8	20.5	0.3	20.7	20.7
Organic products, share of sales, %	1.5	1.2	0.3	1.6	1.3	0.3	1.6	1.6
Average number of employees	—	—	—	609	608	1	—	598
Share of women/men in management positions, %	—	—	—	44.4/55.6	42.9/57.1	1.5/-1.5	—	44.4/53.6

Dagab

Dagab operates and develops the Group's assortment, purchasing and logistics, but also conducts sales to external customers. The Dagab operating segment also includes retailer-owned Handlar'n and Matöppet, the restaurant chain Urban Deli and the partly owned online pharmacy Apohem.

Third quarter

Net sales increased 4.7% and totalled SEK 19,984 m (19,090). Growth was mainly attributable to sales to Axfood's own concepts Willys, Hemköp and Snabbgross.

Operating profit amounted to SEK 341 m (312), which corresponds to an operating margin of 1.7% (1.6). The increase in earnings was primarily attributable to positive sales growth and a lower cost level due to improvements in logistics efficiency. Operating profit was however negatively impacted by a lower gross margin.

The logistics centre in Bålsta is fully operational and the focus is on optimisation to continue improving productivity and efficiency. Work on developing other parts of the Group's warehouse and logistics structure is also progressing. Recently, the expanded and automated high-bay warehouse in the distribution centre in Backa, Gothenburg was taken into operations, further increasing capacity and efficiency. Planning is also ongoing to establish a new highly automated logistics centre to be completed in 2030 which will ensure higher capacity and efficiency for the Group's future growth in southern Sweden. During the quarter, letters of intent were signed with Witron to use the company's automation technology and with the Municipality of Kungsbacka to locate the logistics centre to Frillesås. More information about this initiative can be found on the next page in this interim report.

January - September

Net sales totalled SEK 59,834 m (56,765), an increase of 5.4%. Operating profit amounted to SEK 926 m (828), which corresponds to an operating margin of 1.5% (1.5).

Axfood interim report 1 January – 30 September 2025 13

Growth, %

Adjusted operating

Net sales, SEK m

Operating profit, SEK m Operating margin, %

Dagab key ratios	Q3 2025	Q3 2024	Change	9 mos. 2025	9 mos. 2024	Change	R12	Full-year 2024
Net sales, SEK m	19,984	19,090	4.7%	59,834	56,765	5.4%	79,658	76,589
Operating profit, SEK m	341	312	9.3%	926	828	11.9%	1,255	1,156
Operating margin, %	1.7	1.6	0.1	1.5	1.5	0.1	1.6	1.5
Average number of employees	—	—	—	3,170	3,225	-55	—	3,208
Share of women/men in management positions, %	—	—	—	35.2/64.8	31.0/69.0	4.2/-4.2	—	32.3/67.7

Other information

Financial targets and capital expenditures

Axfood's long-term financial targets:

• Grow faster than the market
• Long-term operating margin of at least 4.5%
• Equity ratio of at least 20% at year-end

Axfood's dividend policy is that the shareholder dividend shall be at least 50% of profit after tax. The dividend is to be paid out on two occasions.

Investments in 2025 are expected to amount to between SEK 1,600 m and SEK 1,700 m, excluding acquisitions and right-of-use assets.

Axfood has previously communicated its plan to maintain a high rate of expansion and establish 10 to 15 new Group-owned stores in 2025. Due to a slight delay, the number of new Group-owned stores opened during the year will amount to 9. In addition, the store network is being expanded, with three retailer-owned stores joining the Group from competing retail chains.

As part of the work to strengthen City Gross and achieve profitability at some point during the second half of 2026, operating profit for 2025 is charged with structural costs. The structural costs are now expected to amount to approximately SEK 115 m, an increase from the previous estimate of SEK 100 m. The costs are recognised in the City Gross segment and pertain primarily to structural measures for a handful of stores, mainly through changes of concept. The costs are classified as items affecting comparability.

New logistics centre in Kungsbacka

As previously communicated, Axfood plans to establish a new, highly automated logistics centre that will ensure increased capacity and efficiency in southern Sweden.

During the third quarter, letters of intent were signed with Witron, a market leader in dynamic inventory management and picking, regarding the company's automation technology, and with Kungsbacka Municipality, regarding the location of the logistics centre in Frillesås. Axfood intends to enter into a long-term lease, and discussions with potential property owners are ongoing. The detailed planning process is also under way.

The logistics centre, which will span approximately 90,000 square metres and be environmentally certified, will handle picking and deliveries of goods in all temperature zones to Axfood's grocery stores. Total capacity is expected to increase at least 20% compared to the current volumes in southern Sweden. The logistics centre is expected to be taken into operation starting in 2030.

The investment need for the future automation solution is estimated at EUR 260–280 m between 2025 and 2030. Given the automation solution chosen, the assessment is that the investment will be at the higher end of this range. The investment will be financed through a combination of operating cash flow and credit facilities.

Once the logistics centre is fully operational, the cost level for the new logistics structure in southern Sweden, including the new lease and increased depreciation for the new logistics centre, is expected to be in line with the current cost level. The cost level is subsequently expected to decrease continuously.

Establishment of own insurance company

To reduce the Group's insurance costs, Axfood has established its own insurance company, Axfood Försäkrings AB, which provides property and business interruption coverage for Group-owned stores in Willys, Hemköp, Snabbgross and Eurocash. The company operates according to a captive arrangement, providing reinsurance up to a total claim amount of SEK 125 m per year. The company is recognised in the joint-Group operating segment.

Supplier data breach

On August 25, Axfood was informed that its supplier Miljödata had been subjected to a data breach in which certain data concerning Axfood's employees was published illegally. Miljödata is a provider of systems used to manage work environment matters. The breach is being investigated and Axfood has reported the incident to the Swedish Authority for Privacy Protection (IMY).

Financial statements, Group

Condensed statement of profit or loss and other comprehensive income

SEK m	Q3 2025	Q3 2024	9 mos. 2025	9 mos. 2024	R12	Full-year 2024
Net sales	22,286	20,902	66,321	62,197	88,181	84,057
Cost of goods sold1)	-18,974	-17,907	-56,481	-53,213	-75,094	-71,826
Gross profit	3,312	2,994	9,840	8,984	13,087	12,231
Selling expenses	-1,326	-1,007	-4,111	-3,082	-5,418	-4,388
Administrative expenses1)	-1,105	-1,141	-3,526	-3,703	-4,910	-5,087
Share of profit in associated companies and joint ventures	-15	-13	-37	-47	-48	-58
Other operating income	200	183	600	534	835	768
Other operating expenses1)	-7	-8	-54	-26	-204	-176
Operating profit	1,059	1,007	2,712	2,661	3,341	3,290
Interest income and similar profit/loss items	9	13	29	37	42	51
Interest expense and similar profit/loss items2)	-144	-109	-444	-319	-581	-456
Profit before tax	924	912	2,297	2,379	2,803	2,885
Tax	-198	-197	-495	-521	-640	-666
Net profit for the period	727	715	1,802	1,858	2,163	2,219

¹⁾ Includes items affecting comparability, see Note 8 Items affecting comparability for more information.

SEK m	Q3 2025	Q3 2024	9 mos. 2025	9 mos. 2024	R12	Full-year 2024
Other comprehensive income
Items that cannot be reclassified to profit or loss for the period, net after tax
Revaluation defined benefit pensions	3	-6	9	-19	-14	-42
Changes in holdings measured at fair value3)	—	-59	—	-134	-22	-156
Items that can be reclassified to profit or loss for the period, net of tax
Changes in hedging reserve	-2	-2	-2	16	2	20
Other comprehensive income for the period	1	-67	7	-136	-34	-177
Total comprehensive income for the period	728	648	1,808	1,721	2,129	2,042
Net profit for the period attributable to
Owners of the parent	713	704	1,778	1,843	2,127	2,192
Non-controlling interest	14	11	24	15	36	27
Total comprehensive income for the period attributable to
Owners of the parent	714	637	1,785	1,706	2,093	2,015
Non-controlling interest	14	11	24	15	36	27
Earnings per share before dilution, SEK	3.30	3.26	8.24	8.54	9.86	10.16
Earnings per share after dilution, SEK	3.29	3.25	8.20	8.50	9.81	10.11

³⁾ See Note 4 Financial assets and liabilities for more information.

²⁾ Of which leasing interest expenses was SEK -115 m (-88) in the third quarter, SEK -341 m (-260) accumulated, and SEK -364 m for the full year 2024.

Condensed statement of financial position

SEK m		30 Sep 2025 30 Sep 2024	31 Dec 2024
Assets
Goodwill	4,825	3,640	4,769
Other intangible assets	2,468	1,547	2,439
Property, plant and equipment	6,573	6,049	6,525
Right-of-use assets	12,607	9,609	12,488
Financial assets	176	526	178
Deferred tax assets	244	204	227
Total non-current assets	26,893	21,575	26,627
Inventories	5,150	4,357	4,887
Trade receivables	2,686	1,944	1,532
Other current assets	718	1,573	1,651
Cash and cash equivalents	334	285	735
Total current assets	8,888	8,159	8,805
Total assets	35,781	29,734	35,432
Equity and liabilities
Equity attributable to owners of the parent	6,952	6,726	7,053
Equity attributable to non-controlling interests	359	323	335
Total equity	7,311	7,049	7,388
Non-current lease liabilities	10,375	7,849	10,161
Non-current interest-bearing liabilities	2,400	—	2,900
Provisions for pensions	280	274	300
Deferred tax liabilities	1,513	1,346	1,509
Other non-current liabilities	8	8	8
Total non-current liabilities	14,576	9,477	14,878
Current lease liabilities	2,241	1,746	2,233
Current interest-bearing liabilities	651	1,140	2
Trade payables	7,435	6,968	7,229
Other current liabilities	3,567	3,352	3,702
Total current liabilities	13,894	13,207	13,166
Total equity and liabilities	35,781	29,734	35,432

Condensed statement of cash flow

SEK m	Q3 2025	Q3 2024	6 mos. 2025	6 mos. 2024	R12	Full-year 2024
Operating activities
Operating profit	1,059	1,007	2,712	2,661	3,341	3,290
Depreciation, amortisation, impairment	1,023	823	3,046	2,431	3,990	3,375
Interest paid and similar items	-144	-107	-443	-317	-579	-453
Interest received and similar items	9	13	29	37	42	51
Adjustments for non-cash items	25	50	76	150	386	461
Paid tax	-170	-123	-572	-407	-752	-587
Changes in working capital	-451	-653	-334	-969	-44	-678
Cash flow from operating activities	1,352	1,013	4,513	3,587	6,385	5,459
Investing activities
Acquisitions of operations	—	—	-2	—	-1,562	-1,561
Acquisitions of intangible assets	-116	-75	-290	-293	-427	-430
Acquisitions of property, plant and equipment	-308	-268	-975	-765	-1,320	-1,109
Acquisitions of financial assets	0	-12	-37	-82	-44	-89
Other changes in investing activities	2	0	8	5	9	5
Cash flow from investing activities	-421	-355	-1,296	-1,135	-3,345	-3,184
Financing activities
Loans raised	1,550	941	5,609	1,980	8,311	4,682
Amortisation of debt	-993	-481	-5,460	-1,359	-6,817	-2,715
Amortisation of lease liability	-610	-520	-1,853	-1,575	-2,572	-2,294
Share repurchases	—	-38	-25	-66	-25	-66
Dividend paid out	-918	-917	-1,889	-1,834	-1,889	-1,834
Cash flow from financing activities	-971	-1,015	-3,618	-2,854	-2,991	-2,227
Cash flow for the period	-40	-358	-401	-403	49	47

Condensed statement of changes in equity

SEK m		30 Sep 2025 30 Sep 2024	31 Dec 2024
Amount at start of year	7,388	7,185	7,185
Total comprehensive income for the period	1,808	1,721	2,042
Change in non-controlling interests	0	0	0
Share repurchases	-25	-66	-66
Share-based payments	28	43	61
Dividend to shareholders	-1,889	-1,834	-1,834
Amount at end of period	7,311	7,049	7,388

Financial statement, Parent Company

Condensed income statement

SEK m	Q3 2025	Q3 2024	9 mos. 2025	9 mos. 2024	Full-year 2024
Net sales	3	6	9	18	22
Selling and administrative costs	-126	-139	-447	-487	-658
Other operating income	107	107	342	324	433
Operating profit	-15	-26	-96	-145	-203
Net financial items1)	15	38	52	110	-304
Profit/loss after financial items	-1	12	-44	-36	-508
Appropriations, net	—	—	—	—	2,132
Profit before tax	-1	12	-44	-36	1,625
Tax	-2	-8	-4	-9	-427
Net profit for the period	-2	4	-48	-45	1,198
Total comprehensive income for the period	-2	4	-48	-45	1,198

¹⁾ Net financial items for the full-year 2024 includes a write-down of shares in subsidiaries of SEK -436 m.

Condensed balance sheet

SEK m		30 Sep 2025 30 Sep 2024	31 Dec 2024
Assets
Property, plant and equipment	22	30	28
Participations in Group companies	4,236	4,446	4,020
Other financial assets	2	2	2
Deferred tax assets	6	7	7
Total non-current assets	4,266	4,484	4,057
Receivables from Group companies1)	6,747	5,389	10,189
Other current assets	524	303	40
Cash and cash equivalents	5	2	14
Total current assets	7,276	5,695	10,243
Total assets	11,542	10,179	14,300
Equity and liabilities
Restricted equity	296	296	296
Non-restricted equity	2,532	3,205	4,466
Total equity	2,828	3,501	4,762
Untaxed reserves	4,032	3,965	4,032
Non-current interest-bearing liabilities	2,400	—	2,900
Other non-current liabilities	10	8	10
Non-current liabilities	2,410	8	2,910
Current interest-bearing liabilities	651	1,140	2
Trade payables	15	18	25
Liabilities to Group companies2)	1,488	1,442	2,406
Other current liabilities	118	104	163
Total current liabilities	2,272	2,705	2,596
Total equity and liabilities	11,542	10,179	14,300
1) Of which, interest-bearing receivables	6,730	5,340	7,317
2) Of which, interest-bearing liabilities	1,484	1,442	1,727

Notes

Note 1 Accounting policies

Axfood applies the International Financial Reporting Standards (IFRS) as endorsed by the EU. The accounting policies, measurement principles and definitions applied correspond with those described in the 2024 Annual and Sustainability Report, except for what is stated below.

This interim report has been prepared for the Group in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. For the Parent Company, the interim report has been prepared in accordance with recommendation RFR 2 Accounting for Legal Entities, issued by the Swedish Financial Reporting Board (RFR), and the Swedish Annual Accounts Act.

All amounts are rounded off to the nearest million kronor, unless stated otherwise. Totals may be affected by rounding.

New or amended accounting policies in 2025 and later

No new or amended standards or interpretations that have been endorsed for application in 2025 or later are to have any material effect on the consolidated financial statements.

Significant estimates and assessments

Preparing the financial statements in accordance with IFRS requires the Board and Executive Committee to make judgements and estimates as well as assumptions that affect the application of the accounting policies and the Company's result and position as well as other disclosures in general. The actual outcome may deviate from these estimates and assessments.

Note 2 Other material information

Seasonal effects

Axfood's sales are affected to some degree by seasonal variations. Sales increase in the quarter in which Easter falls, which is either the first or second quarter. Sales also increase ahead of Midsummer during the second quarter as well as ahead of the major holidays in the fourth quarter.

Transactions with related parties

The Axfood Group's transactions with related parties, aside from those covered by the consolidated financial statements, consist of transactions with associated companies and with subsidiaries within the Axel Johnson Group.

Significant risks and uncertainties

Like all business activities, Axfood's business is exposed to risks. The risks are broken down into operational, strategic and financial risks. Operational and strategic risks include sustainability risks. The risks that could have the greatest impact on the Group are the risk of disruptions in the logistics chain, IT and information security risks, and criminality. Axfood works continuously with risk identification and assessment. Major emphasis is placed on preventive work and on planning to maintain operating continuity in the event of unforeseen events. For a thorough account of the risks that affect the Group, please refer to the 2024 Annual and Sustainability Report.

Note 3 Operating segments

Segment reporting follows the internal reporting structure for reporting to the Executive Committee, which is the decision-making body within Axfood that comprises the chief operating decision-maker. The operating segments that have been identified are Willys, Hemköp, City Gross, Snabbgross and Dagab. Joint-Group pertains to support functions, such as the Executive Committee, Finance, Legal Affairs, Communications, Business Development, HR, IT and Insurance.

The Executive Committee reviews the segments' operating profit or loss, both including and excluding items affecting comparability.

For information about Axfood's operating segments, see pages 9-13 of this interim report. For a more detailed description of the segments, please refer to the 2024 Annual and Sustainability Report. City Gross is a new operating segment from the fourth quarter 2024.

Note 4 Financial assets and liabilities

Financial assets measured at fair value amounted to SEK 7 m (29). SEK 0 m (—) is attributable to Level 2 of the fair value hierarchy and SEK 7 m (29) is attributable to Level 3. Financial liabilities measured at fair value amounted to SEK 3 m (9). The entire amount is attributable to Level 2 of the fair value hierarchy.

Forward exchange contracts are measured at fair value based on the Central Bank of Sweden's spot rates on the accounting date, which is assessed to be a reasonable approximation of fair value.

The carrying amount of the participation in Oda Group amounted to SEK 7 m (29). Axfood's shareholding in Oda Group amounted to 2.3% (2.2). The carrying amount and shareholding are unchanged since 31 December 2024.

Note 5 Acquired and divested operations

Acquired operations

The purchase price allocation of City Gross Sverige AB ("City Gross"), which was acquired on 1 November 2024, was finalised during the third quarter in accordance with the preliminary purchase price allocation.

In the third quarter of 2025, the acquisition of City Gross had an impact of SEK 345 m on consolidated net sales and SEK -43 m on consolidated operating profit. Cumulatively, the acquisition has affected the consolidated net sales by SEK 998 m and the consolidated operating profit by SEK -206 m. Prior to the acquisition, City Gross was an external customer of many of the companies in the Axfood Group, which is why the impact on the Axfood Group does not correspond with City Gross's net sales and operating profit.

Fair value according to final purchase price allocation, SEK m

710
8
111
404
2,016
610
7
196
82
-109
-2,016
-416
-560
-350
694
1,131
1,825
1,825
-181
-82

Change in consolidated cash and cash equivalents 1,562 Cash consideration paid 1,645

Note 6 Pledged assets and contingent liabilities

During the fourth quarter 2024, the Group made a new likelihood assessment of its guarantee commitments to government authorities such as the Swedish Customs Service and the Swedish Board of Agriculture. The new assessment is that it is extremely unlikely that the commitments will be utilised, and the commitments are therefore not recognised as a pledged asset or contingent liability. Corresponding assessment has already been made regarding the guarantee commitment towards NREP Logicenters.

Group, SEK m	30 Sep 2025	30 Sep 2024	31 Dec 2024
Contingent liabilities	29	19	18
Parent Company, SEK m	30 Sep 2025	30 Sep 2024	31 Dec 2024
Contingent liabilities	286	264	275

There are no pledged assets in either the Group or the parent company.

Note 7 Long-term share-based incentive programmes

The 2025 AGM resolved to adopt a new long-term share-based incentive programme that runs over a three-year period, LTIP 2025. The programme corresponds in all essential respects to LTIP 2024 with the following changes. The share right for the previous performance condition that the total shareholder return should exceed 0% was replaced with a share right linked to the total shareholder return in relation to reference group of companies. In addition, the maximum level for full allocation for the share rights linked to the relative total shareholder return was adjusted slightly.

Allotment of LTIP 2022 was carried out in April 2025 using treasury shares.

The holding of treasury shares amounts to 921 517 shares, which is sufficient to secure the delivery of shares for all of the Company's incentive programmes.

For more information about incentive programmes, please refer to the 2024 Annual and Sustainability Report.

Note 8 Items affecting comparability

Items affecting comparability in the third quarter totalled SEK -39 m (—), and cumulative SEK -102 m (—) and pertain in its entirely to structural costs relating to City Gross. The costs are included in other operating expenses, cost of goods sold, and in administrative expenses. Items affecting comparability for the full year 2024 comprised in its entirety of the revaluation of the previous minority stake of 9.9% in City Gross which has been carried out in connection with the acquisition of the remaining shares in City Gross. The cost was included in other operating expenses.

Item affecting comparability	Segment	Q3 2025	Q3 2024	9 mos. 2025	9 mos. 2024	R12	Full-year 2024
Structural costs	City Gross	-39	—	-102	—	-102	—
Revaluation of City Gross	Joint-Group	—	—	—	—	-143	-143
Total		-39	—	-102	—	-245	-143

Note 9 Significant events after the balance sheet date

No significant events after the balance sheet date.

Key ratios

Change in store structure

Number of stores	Dec 2024	New establishment/ acquisitions	Sales/	closures Conversions	Sep 2025	Sep 2024
Willys/Willys Hemma/Eurocash	248	7	—	1	256	244
Hemköp/Tempo, Group-owned stores	68	—	-1	1	68	67
City Gross1)	42	—	—	-2	40	—
Snabbgross/Snabbgross Club	31	—	—	—	31	31
Total, Group-owned stores	389	7	-1	0	395	342
Hemköp, retailer-owned stores	134	2	-1	-2	133	133
Tempo, retailer-owned stores	124	8	-8	1	125	126
Total, retailer-owned stores	258	10	-9	-1	258	259
Total, Group-owned and retailer-owned stores	647	17	-10	-1	653	601

¹⁾ City Gross Borlänge will be converted to Willys in the fourth quarter of 2025.

New establishments and acquisitions, group-owned stores

First quarter

Willys Vimmerby Willys Hemma Malmö Oxie

Second quarter

Willys Hemma Örebro Varberga Willys Hemma Ludvika Marnäs Willys Hemma Sollentuna Willys Skärholmen

Third quarter

Willys Hörby

Key ratios and other data, Group

				Quarterly overview						January - September	Full-year
SEK m	Q3 2025	Q2 2025	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023	9 mos. 2025	9 mos. 2024	R12	Full-year 2024
Net sales	22,286	22,995	21,040	21,860	20,902	21,044	20,252	20,769	66,321	62,197	88,181	84,057
Retail sales	19,625	20,282	18,829	18,836	16,427	16,509	16,281	16,507	58,736	49,217	77,572	68,052
Operating profit	1,059	934	719	629	1,007	836	817	744	2,712	2,661	3,341	3,290
Operating profit excl. items affecting comparability	1,099	959	757	772	1,007	836	817	815	2,814	2,661	3,586	3,433
Operating margin, %	4.8	4.1	3.4	2.9	4.8	4.0	4.0	3.6	4.1	4.3	3.8	3.9
Operating margin excl. items affecting comparability, %	4.9	4.2	3.6	3.5	4.8	4.0	4.0	3.9	4.2	4.3	4.1	4.1
Items affecting comparability	-39	-25	-38	-143	—	—	—	-71	-102	—	-245	-143
Net profit for the period	727	622	453	361	715	582	560	533	1,802	1,858	2,163	2,219
Cash flow from operating activities	1,352	1,929	1,232	1,872	1,013	879	1,695	2,219	4,513	3,587	6,385	5,459
Capital employed	23,258	22,282	22,091	22,985	18,058	16,907	16,509	17,212	23,258	18,058	23,258	22,985
Return on capital employed R12, %	16.4	17.0	16.8	16.6	19.6	21.0	21.5	20.3	16.4	19.6	16.4	16.6
Return on equity R12, %	31.1	34.3	37.0	31.5	36.2	40.7	45.7	35.0	31.1	36.2	31.1	31.5
Net working capital R12	-2,880	-2,819	-2,791	-2,875	-2,902	-2,870	-2,804	-2,620	-2,880	-2,902	-2,880	-2,875
Net working capital as a share of net sales R12, %	-3.3	-3.2	-3.3	-3.4	-3.5	-3.5	-3.4	-3.2	-3.3	-3.5	-3.3	-3.4
Total capital expenditures (incl. IFRS 16)	732	1,443	1,183	3,508	923	907	1,178	1,242	3,358	3,008	6,866	6,516
Investments in intangible assets and in property, plant and equipment	423	471	371	481	344	360	354	528	1,265	1,058	1,746	1,539
Depreciation/amortisation (incl. IFRS 16)	-1,019	-1,003	-1,001	-944	-823	-806	-796	-779	-3,024	-2,425	-3,968	-3,369
Depreciation/amortisation of intangible assets and property, plant and equipment	-373	-357	-354	-341	-305	-299	-285	-279	-1,085	-890	-1,426	-1,231
Equity ratio, %	20.4	18.2	16.8	20.9	23.7	21.1	19.4	23.9	20.4	23.7	20.4	20.9
Net debt (+)/net receivable (-)	15,613	15,337	15,796	14,861	10,724	9,843	9,750	9,339	15,613	10,724	15,613	14,861
Net debt (+)/net receivable (-) excl. IFRS 16	2,997	2,407	3,215	2,467	1,129	306	202	93	2,997	1,129	2,997	2,467
Net debt/EBITDA, multiple	2.1	2.2	2.3	2.2	1.6	1.5	1.5	1.5	2.1	1.6	2.1	2.2
Net debt/EBITDA excl. IFRS 16, multiple	0.7	0.6	0.8	0.6	0.3	0.1	0.0	0.0	0.7	0.3	0.7	0.6
Net debt-equity ratio (+)/net receivable-equity ratio (-), multiple	2.1	2.3	2.7	2.0	1.5	1.5	1.6	1.3	2.1	1.5	2.1	2.0
Net debt-equity ratio (+)/net receivable-equity ratio (-) excl. IFRS 16, multiple	0.4	0.3	0.5	0.3	0.2	0.0	0.0	0.0	0.4	0.2	0.4	0.3
Average number of employees	15,675	14,907	14,578	13,709	13,486	12,902	12,803	13,185	15,675	13,486	—	13,709
Number of shares outstanding at end of period	215,921,723	215,921,723	215,744,895	215,744,895	215,744,895	215,892,895	215,777,588	215,777,588		215,921,723 215,744,895	215,921,723	215,744,895
Average number of shares outstanding before dilution	215,921,723	215,874,569	215,744,895	215,744,895	215,768,250	215,860,865	215,777,588	215,777,588		215,847,062 215,802,234	215,821,520	215,787,900
Average number of shares outstanding after dilution	216,843,240	216,776,894	216,843,240	216,843,240	216,843,240	216,806,696	216,843,240	216,843,240		216,821,125 216,831,059	216,826,653	216,834,104
Earnings per share before dilution, SEK	3.30	2.85	2.09	1.62	3.26	2.68	2.60	2.42	8.24	8.54	9.86	10.16
Earnings per share before dilution excl. items affecting comparability, SEK	3.45	2.94	2.23	2.28	3.26	2.68	2.60	2.68	8.61	8.54	10.89	10.82
Earnings per share after dilution, SEK	3.29	2.83	2.08	1.61	3.25	2.67	2.59	2.41	8.20	8.50	9.81	10.11
Ordinary dividend per share, SEK	—	—	—	8.75	—	—	—	8.50	—	—	—	8.75
Equity per share, SEK	32.20	28.83	26.06	32.69	31.17	28.30	26.11	31.87	32.20	31.17	32.20	32.69
Cash flow from operating activities per share, SEK	6.26	8.94	5.71	8.68	4.69	4.07	7.86	10.28	20.91	16.62	29.58	25.30
Cash flow per share, SEK	-0.19	0.18	-1.85	2.08	-1.66	-0.81	0.60	0.82	-1.86	-1.87	0.23	0.22
Share price, SEK	292.10	279.60	225.80	234.00	286.20	278.40	311.20	273.00	292.10	286.20	—	234.00

Financial key ratios

In addition to the financial key ratios prepared in accordance with IFRS, Axfood presents financial key ratios that are not defined by IFRS or by the Swedish Annual Accounts Act, so-called alternative performance measures (APMs). These APMs aim to provide supplementary information that contributes to analysing Axfood's operations and development. The APMs used are considered generally accepted in the industry. APMs should not be seen as a substitute for financial information presented in accordance with IFRS, but as a complement. The APMs are defined below under the financial key ratio definitions. Certain APMs are also reported excluding IFRS 16 to enable a follow-up of operational development excluding the technical accounting effects as a result of IFRS 16. Some APMs are also reported excluding items affecting comparability since the adjusted performance measure provides a better understanding of the operations' underlying development when comparing between periods.

Reconciliation of EBITDA

SEK m	Q3 2025	Q3	2024 9 mos. 2025 9 mos. 2024		R12	Full-year 2024
Operating profit	1,059	1,007	2,712	2,661	3,341	3,290
Depreciation, amortisation, impairment	1,023	823	3,046	2,431	3,990	3,375
EBITDA	2,083	1,831	5,759	5,092	7,331	6,665
IFRS 16 Lease fees	-735	-588	-2,201	-1,770	-2,883	-2,452
EBITDA excl. IFRS 16	1,348	1,243	3,557	3,322	4,448	4,213

For reconciliation of additional key ratios, see Axfood´s website, axfood.com.

Financial key ratio definitions

Capital employed: Total assets less non-interest-bearing liabilities and non-interestbearing provisions. Measures the Group's capital use and efficiency.

Cash flow from operating activities per share: Cash flow from operating activities for the period divided by the average number of shares outstanding before dilution. Indicates cash flow generated from operating activities.

Cash flow per share: Cash flow for the period divided by the average number of shares outstanding before dilution. Indicates cash flow generated per share.

Earnings per share (defined in IFRS): Net profit for the period attributable to owners of the parent divided by the average number of shares outstanding. Reported both before and after dilution. Earnings per share are also reported based on earnings excluding items affecting comparability.

EBITDA: Operating profit before depreciation, amortisation and impairment. Also reported excluding the effects of reporting in accordance with IFRS 16 as EBITDA excl. IFRS 16. Indicates the underlying development of the operations.

Equity per share: Share of equity attributable to owners of the parent divided by the number of shares outstanding at the end of the period. Indicates shareholders' share of the Company's total equity per share.

Equity ratio: Equity including non-controlling interests as a percentage of total assets. An equity ratio of at least 20% at year-end is one of Axfood's Group-wide strategic targets.

Items affecting comparability: Financial effects in connection with major acquisitions and divestments or other major structural changes as well as material non-recurring items that are relevant in order to understand the results when comparing between periods.

Net debt/EBITDA: Net debt divided by EBITDA on a rolling 12-month basis. Also reported excluding the effects of reporting in accordance with IFRS 16. Indicates the Group's ability to pay its debt.

Net debt-equity ratio/net receivable-equity ratio: Net debt/net receivable divided by equity including non-controlling interests. Also reported excluding the effects of reporting in accordance with IFRS 16. Indicates the Company's debt-equity ratio.

Net debt/net receivable: Interest-bearing non-current and current receivables and liabilities less cash and cash equivalents and interest-bearing financial assets. Net indebtedness is also referred to as net debt. Net receivable is also referred to as net receivables. Used to show the Company's net interest-bearing assets and liabilities.

Net debt/net receivable excluding IFRS 16: Interest-bearing non-current and current receivables and liabilities, excluding lease liabilities, less cash and cash equivalents and interest-bearing financial assets.

Net working capital: Average current assets less current liabilities (adjusted for dividend), on a rolling 12-month basis. Indicates the average financing need for the group's working capital.

Net working capital as a share of net sales: Working capital divided by net sales, rolling 12 months. Shows the group's ability to use working capital to generate sales.

Operating margin: Operating profit as a percentage of net sales for the period. An operating margin of at least 4.5% is one of Axfood's strategic Group-wide targets.

Operating margin excluding items affecting comparability: Operating profit excluding items affecting comparability as a percentage of net sales for the period. Also referred to as adjusted operating margin.

Operating profit: Profit before net financial items and tax. Indicates profitability for operating activities.

Operating profit excluding items affecting comparability: Profit before net financial items and tax adjusted for items affecting comparability. Also referred to as adjusted operating profit.

Return on capital employed: Profit after financial items, plus financial expenses on a rolling 12-month basis as a percentage of average capital employed. Indicates profitability in both equity and borrowed capital in the Company.

Return on equity: The share of net profit for the period on a rolling 12-month basis attributable to owners of the parent as a percentage of the share of average equity attributable to owners of the parent. Indicates the return that owners receive on capital invested.

Sales growth: Percentage change in sales between two periods. Axfood monitors growth in both retail sales and net sales. One of Axfood's Group-wide strategic targets is to grow faster than the market and growth in retail sales is the target Axfood uses to measure this.

Operating key ratio definitions

Average number of employees: Total number of hours worked divided by the number of hours worked per year of 1,920. Also referred to as FTEs.

Joint-Group: Pertains to support functions, such as the Executive Committee, Finance, Legal Affairs, Communications, Business Development, HR, IT, and Insurance.

Like-for-like sales: Sales in stores that existed and generated sales in the current period and the comparison period.

Online sales: Reported online sales of the concepts Willys, Hemköp Group-owned stores, Hemköp retailer-owned stores and City Gross.

Private label products, share of sales: Sales of private label products, excluding meat, fruits and vegetables, as a percentage of retail sales.

Retail sales: Reported store sales including online sales for the concepts Willys, Willys Hemma, Eurocash, Hemköp Group-owned stores, Hemköp retailer-owned stores, Tempo and City Gross, excluding adjustments mainly related to customer bonuses.

R12: The sum of the past 12 months determined on a rolling basis.

Share price: Closing share price.

Wholesale sales: Company and private customer sales including online for the concepts Dagab and Snabbgross (including Snabbgross Club).

Key ratio definitions for sustainability

Kg CO2e/tonne of transported goods: Emissions (kg CO2e) from purchased fuel (litres) in relation to total transported goods (tonnes) between warehouses and stores or consumer. Transports between warehouses and consumers pertain to e-commerce transports and amounts to only a small share of the total. Reported data pertains only to goods delivered by own transports. Reported data is presented with a one-month lag.

Kg CO2e/kg of food sold: The amount of greenhouse gas emissions (kilo carbon dioxide equivalents) from food in relation to total food sold (kilo food). The sample includes sales in stores within Willys, Eurocash, Hemköp (also retailer-owned), City Gross and Snabbgross.

KRAV-certified meat, share of sales: Sales from KRAV-certified meat items (fresh and frozen) as a percentage of Axfood's total sales of meat products. The selection includes stores in the Willys, Eurocash, Hemköp (also retailer-owned), City Gross and Snabbgross store chains.

Organic products, share of sales: Sales from organic-labelled products with a valid country of origin marking as a percentage of Axfood's total food sales. The selection includes stores in the Willys, Eurocash, Hemköp (also retailer-owned), City Gross and Snabbgross store chains.

Share of approved social audits: Share of social audits where the supplier received a rating of 1 or 2 on a three-point scale where rating 1 refers to approved audits, rating 2 to approved audits with remarks, and rating 3 to non-approved audits. Social audits comprise on-site visits and inspections carried out to ensure that suppliers fulfil the requirements of Axfood's Supplier Code of Conduct. The selection includes audits of suppliers of private label products and fresh fruit and vegetables operating in risk countries, as well as tomato suppliers in Italy. All audits have been carried out according to one of the 23 trusted third-party standards that Axfood accepts.

Share of women/men in management positions: The share of women/men in management positions at the end of the current period. Management positions are defined as employed managers with employee responsibility, including the Executive Committee.

Sustainability-labelled products, share of sales: Sales from sustainability-labelled products with a valid country of origin marking as a percentage of retail and wholesale sales from the corresponding chains. The selection includes stores in the Willys, Eurocash, Hemköp (also retailer-owned), City Gross and Snabbgross store chains.

Auditor's review report

To the Board of Directors of Axfood AB (publ) Corporate registration number 556542-0824

Introduction

We have reviewed the interim report for Axfood AB (publ) for the period 1 January 2025–30 September 2025. The Board of Directors and the President are responsible for the preparation and presentation of this interim financial information in accordance with IAS 34 and the Annual Accounts Act. Our responsibility is to express a conclusion on this interim report based on our review.

Scope of the review

We conducted our review in accordance with the International Standard on Review Engagements (ISRE) 2410, Review of Interim Financial Information Performed by the Independent Auditor of the Entity. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review has a different focus and is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (ISA) and other generally accepted auditing practices. The procedures performed in a review do not enable us to obtain a level of assurance that we would make us aware of all significant matters that might be identified in an audit. Therefore, the conclusion expressed based on a review does not give the same level of assurance as a conclusion based on an audit.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the interim report is not, in all material aspects, prepared for the Group in accordance with IAS 34 and the Annual Accounts Act, and for the Parent Company in accordance with the Annual Accounts Act.

Stockholm, 23 October 2025 Deloitte AB

Didrik Roos Authorised Public Accountant

About Axfood Other

Axfood is a leader in food retail in Sweden and a family of different concepts in collaboration. The Group has more than 15,000 employees (FTEs) and net sales of close to SEK 90 billion. Axfood aspires to be a strong force in society that drives development toward more sustainable food production and consumption. The share is listed on Nasdaq Stockholm and the principal owner is Axel Johnson.

Axfood's vision is to be the leader in affordable, good and sustainable food. This is how Axfood creates a greater quality of life for everyone, which is the Group's purpose. The business model covers purchasing and assortment, product flow and logistics, and sales channels and concepts. The customer is always in focus and value is created for Axfood and the Group's stakeholders in every step. The strategy rests upon a values-steered culture and core values. Axfood aspires to take the lead in promoting a sustainable food system and to be a strong force for change in society.

A unique family of companies

Axfood is primarily represented in the Swedish food retail market through the leading discount grocery chain Willys, Hemköp in the traditional grocery segment and the hypermarket chain City Gross. With Tempo, Handlar'n and Matöppet, Axfood also has a position in mini-marts, while Eurocash operates stores in cross-border shopping adjacent to Norway. In addition to these concepts, Axfood also has a presence in cafés and restaurants with the wholesale business Snabbgross and the restaurant chain Urban Deli, and a position in the online pharmacy market with Apohem. Dagab is responsible for ensuring that the assortment, purchasing and logistics maintain high efficiency and quality

Financial targets and dividend policy

Axfood's long-term financial targets is to grow faster than the market, a long-term operating margin of at least 4.5% and an equity ratio of at least 20% at year-end. Axfood's dividend policy is that the shareholder dividend shall be at least 50% of profit after tax. The dividend is to be paid out on two occasions.

Investment case

• The food retail market is relatively unaffected by economic swings and is driven largely by population growth and inflation. Axfood has a clear strategy for addressing the trends in the market through concrete priorities in six focus areas. The goal is to grow faster than the market with a long-term operating margin of at least 4.5%.
• To meet customers' varying needs, Axfood is a family of different concepts with strong market positions. With a clear expansion plan, a focus on the customer meeting in physical stores and in e-commerce, as well as continuous development of the offering, customers' evolving behaviours are being met.
• Economies of scale and cost efficiency are achieved through close collaboration between the central functions and Group companies. Dagab is the joint purchasing and logistics company, setting high demands for price, quality and sustainability. Axfood's common IT company has a crucial role in the Group's digital development, automation and data-driven work approach to meet future needs.
• Axfood has a solid balance sheet, and the business model generates stable cash flow with efficient management of working capital. During the last five years, the dividend yield has on average been slightly more than 3%.
• Axfood has long been working to be a positive force in society. Axfood is taking the lead in promoting a sustainable food system, and innovative and sustainable products are being launched through the private label assortment.

Selection of press releases

15 August 2025

City Gross strengthens its management team through two new key recruitments

18 August 2025

City Gross lowers prices - again!

25 August 2025

Willys calls on the municipalities of Sweden: Don't stop the establishment of discount stores!

28 August 2025

Letters of intent signed for new highly automated logistics centre in Kungsbacka

3 September 2025

Axfood presents more than 100 solutions for sustainable food in Sweden

9 September 2025

Nominating Committee ahead of Axfood's 2026 Annual General Meeting

18 September 2025

Capital Markets Day 2025: "The strength of our business model allows us to keep challenging and growing"

Financial calendar

• The year-end report for 2025 will be published at 7:00 a.m. CET on 29 January 2026
• The 2026 Annual General Meeting (AGM) will be held on 18 March 2026
• The interim report for the first quarter of 2026 will be published at 7:00 a.m. CET on 23 April 2026
• The interim report for the second quarter of 2026 will be published at 7:00 a.m. CET on 15 July 2026
• The interim report for the third quarter of 2026 will be published at 7:00 a.m. CET on 22 October 2026

Signature

Stockholm, 23 October 2025

Simone Margulies President and CEO Axfood

Contact

Axfood AB, SE-107 69 Stockholm, Solnavägen 4 Telephone: +46 8 553 990 00 Corporate reg. number: 556542-0824 info@axfood.se, axfood.com linkedin.com/company/axfood, Instagram: @axfoodkoncernen