Ahold Delhaize's second quarter results impacted by Stop & Shop strike
07 August 2019 - 6:45AM
Ahold Delhaize's second quarter results impacted by Stop & Shop
strike
- Net sales of €16.3 billion, up 1.5% at constant exchange rates,
impacted by the strike
- Net consumer online sales up 29.2% at constant exchange
rates
- Underlying operating margin of 3.6%, including strike
impact
- U.S. comparable sales growth excl. gasoline +2.3% adjusted for
Easter and strike impact
- Net synergies of €512 million achieved from the
integration
- 2019 interim dividend of €0.30, based on 40% of first half 2019
underlying income per share*
* from continuing operations
Zaandam, the Netherlands, August 7, 2019 – Ahold Delhaize, one
of the world’s largest food retail groups and a leader in both
supermarkets and eCommerce, today reports second quarter
results.
Frans Muller, President and CEO of Ahold Delhaize, said:
"Although our results were impacted by the strike at Stop &
Shop, our other U.S. brands continued their strong performance. As
we continue to see sales performance improve at Stop & Shop, we
expect no significant impact from the strike in the second half of
the year.
"U.S. comparable sales excluding gasoline were up 0.2% during
the quarter, with the strike impact offset by the strong
performance of our other brands, in particular Food Lion. Excluding
the impact from the strike and subsequent period of sales recovery
and the favorable timing of Easter, comparable sales excluding
gasoline were up 2.3%. Our online business in the U.S. grew 14.4%,
or 18% excluding the adverse impact of the strike and we remain
confident that we can achieve over 20% growth in U.S. online sales
in 2019.
"In the Netherlands, performance remained solid, with 3.1%
comparable sales growth, adjusted for Easter. Net consumer online
sales were up 34.4%, with bol.com, the most successful online
retail platform in the Benelux, growing net consumer sales by
37.5%. In Belgium, comparable sales were slightly below last year,
but underlying operating margins further improved compared to 2018.
In Central and Southeastern Europe, the sales performance in Greece
improved over previous quarters.
"During the quarter, we continued to make steady progress on the
execution of our Leading Together strategy. We started the rollout
of our "Re-imagine Stop & Shop" program on Long Island,
implementing learnings from the Hartford, Connecticut, stores we
remodeled last year. We also launched various fresh food
initiatives across the businesses in both the U.S. and Europe,
providing healthy and convenient meal solutions for our customers.
Highlighting our commitment to sustainability, we successfully
issued a €600 million Sustainability Bond, making Ahold Delhaize
the first retailer to issue a euro-denominated Sustainability
Bond.
"With the integration of Ahold and Delhaize now fully completed,
we achieved net synergies of €512 million on an annual
run-rate basis, slightly ahead of our target. We are well underway
with our Save for Our Customers program which is expected to
deliver €540 million in 2019.
"Today, we also reiterate the 2019 outlook that we announced
when we published our first quarter 2019 results.
"For the first half of 2019, we will pay an interim dividend of
€0.30, based on 40% of first half 2019 underlying income per share
from continuing operations."
- Ahold Delhaize Q2 2019 Interim report
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