The Dutch retail giant published its results early this morning. Unsurprisingly, Ahold slightly exceeded expectations for the seventh consecutive quarter.
Stockmarket note: the Ahold share price is currently at a 20-year high, continuing its slow recovery since the sharp fall in the summer of 2001.
Its Benelux competitor Colruyt published its results earlier in the week, however the comparisons end there. Although both groups operate in a defensive sector, their trajectories diverge. Ahold Delhaize benefits from strong geographical diversification, which secures its revenues and offers growth opportunities. Conversely, Colruyt remains penalized by its dependence on the Belgian market, where competition is hurting many players.
(find out more about Colruyt’s results:“Colruyt: No sparkle in the retail sector”)
Key figures
- Earnings per share: +11.5%, at €0.60
- Revenue: +7.1% to €23.3bn
- Operating margin: stable at 3.8%
The United States as the driving force
The US market, which accounts for 60% of the group’s revenue, grew by 3.1%. In Europe, growth was slightly higher at 3.7%. The operating margin remains higher in the United States, with a one-point difference.
E-commerce continues to gain ground. It now accounts for 17.9% of sales, driven by strong momentum in the sector, which recorded double-digit growth for the fourth consecutive quarter. Ahold Delhaize is investing heavily in this area to maintain momentum.
80% of US stores now offer Click & Collect.
Solid outlook
The group is confident about the rest of the financial year:
- Share buyback program: €1bn
- Earnings per share forecast: +5% to +9% (consensus: 5.5%)
- Record investments: €2.7bn
- Target operating margin: 4%
- Expected cash flow: €2.2bn, stable compared to 2024
The end of tobacco sales in supermarkets in the Netherlands, and since April 1 in Belgium, is expected to cost “1 percentage point of sales in Europe.”
External growth in Romania
In terms of acquisitions, Ahold Delhaize is heading east. In early January, the group finalized the acquisition of Romanian retailer Profi for €1.3bn. The deal will enable it to double its presence in Romania, where Profi generated €2.7bn in revenue in 2024.
Finally, the group sought to reassure investors about trade tensions. In early April, it stated that it was fully integrated into the US market and said it was not particularly exposed to any potential repercussions.
