Ahold Delhaize reports strong third quarter results
06 November 2019 - 06:45AM
Ahold Delhaize reports strong third quarter results
• Net sales of €16.7 billion, up 2.9% at constant exchange
rates• Net consumer online sales up 29.5% at constant exchange
rates• Operating income of €679 million• Underlying operating
income of €724 million, with underlying group operating margin of
4.3%• Underlying EPS from continuing operations of €0.44, up 5.2%
year over year• U.S. comparable sales growth excluding gasoline
+1.8%• U.S. online sales growth accelerated to 26.3% at constant
exchange rates in the third quarter
Zaandam, the Netherlands, November 6, 2019 – Ahold Delhaize, one
of the world’s largest food retailgroups and a leader in both
supermarkets and eCommerce, reports third quarter results
today.
Frans Muller, President and CEO of Ahold Delhaize, said: "We saw
a strong overall performance at ourU.S. brands, particularly at
Food Lion and Hannaford. Stop & Shop is operating in a
challenging salesenvironment, but we are encouraged by improving
transactions as we move into the fourth quarter. Our‘Re-imagine
Stop & Shop’ program is off to a good start, and we are pleased
with the sales uplifts seenin the 21 remodeled Long Island stores,
which are performing in line with our expectations.
"U.S. comparable sales excluding gasoline were up 1.8% during
the quarter, which included a 0.3%benefit from Hurricane Dorian.
Excluding the net impact from Hurricane Dorian this year and
HurricaneFlorence last year, comparable sales excluding gasoline
were up approximately 2% in the third quarter.Comparable sales were
strong in light of challenging prior year comparisons. We were
encouraged tosee the two-year stacked comparable sales growth
accelerated to 4.5% in the third quarter of 2019,adjusted for
weather, versus 3.3% in the second quarter of 2019, adjusted for
both the strike andcalendar shift impacts. In addition, our online
business in the U.S. grew by 26.3% at constant exchangerates in the
quarter, giving us confidence that we can achieve over 20% growth
in U.S. online sales in2019.
"In the Netherlands, our performance remained solid, with 3.0%
comparable sales growth. Marketshare at Albert Heijn was flat year
over year in the third quarter, an improved trend over
previousquarters. Net consumer online sales for the segment were up
30.7%. At bol.com, our online retailplatform in the Benelux, net
consumer sales grew by 34.0%. While one-time items benefited
underlyingoperating margins in the Netherlands, this benefit was
largely offset at the group level by theunfavorable year-over-year
impact from insurance results. In Belgium, comparable sales
excludingcalendar impacts were down modestly, but we gained market
share and the trend for both improvedover the last quarter. In
Central and Southeastern Europe, we saw a strong performance,
particularly inthe Czech Republic and Romania, and both Greece and
Serbia improved over previous quarters."We continue to make
progress on the execution of our Leading Together strategy. We are
wellunderway with our Save for Our Customers program, which is now
expected to deliver €600 million in2019, higher than our previous
target of €540 million. We achieved our goal of having more than
600Click and Collect points in the U.S. by year-end, ahead of
schedule, in October. Our fresh kitchen andculinary innovation
center in Rhode Island, which will test new fresh own-brand food
concepts andprocess fresh fruit and vegetables, is now ramping up.
In the U.S. and Europe, we continue to innovateby testing various
forms of frictionless payment.
"We remain focused on health and sustainability, in line with
our purpose: 'Eat well. Save time. Livebetter.' We recently
announced a global goal to reduce food waste by 50% by 2030 as part
of the'10x20x30' initiative, which brings together 10 of the
world's largest food retailers to engage with 20 oftheir priority
suppliers to halve food loss and waste by 2030.
"Today we also reiterate our 2019 outlook announced during our
second quarter 2019 results."
- Ahold Delhaize Q3 2019 Interim report
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