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Food retail group Ahold Delhaize has reported net sales of €23.28bn ($26.41bn) in the first quarter (Q1) of fiscal 2025 (FY25) - a 5% rise at constant exchange rates and 7.1% at actual exchange rates.
The company attributed the sales growth to its acquisition of Profi, a 3.3% increase in comparable sales excluding gasoline, and new store openings.
Profi adds more than 1,700 supermarkets and convenience stores to the company’s European footprint in the CSE region.
Online sales for Ahold Delhaize rose 13.7% at constant exchange rates during Q1 FY25, propelled by robust growth in online grocery in the US and European markets and bolstered by increased sales at bol.com.
In the US, sales climbed 1.8% at constant exchange rates to €13.9bn in Q1 FY25, and European net sales also showed strong performance with a rise of 10.1% at both constant and actual exchange rates, reaching €9.3bn.
The underlying operating margin for Ahold Delhaize stood at 3.8%, reflecting a slight contraction of 0.2 percentage points at constant exchange rates due to price investments in the US.
The company's international financial reporting standards (IFRS) operating income for Q1 was reported at €880m, maintaining an IFRS operating margin of 3.8%.
Diluted earnings per share (EPS) for the quarter were noted at €0.60, marking a 11.5% increase at actual currency rates year-on-year.
Despite uncertainty in the macroeconomic climate, particularly concerning tariff policies and currency fluctuations, Ahold Delhaize reaffirmed the full-year outlook for 2025 that was previously announced alongside its Q4 2024 results.
The company forecasts an underlying operating margin around 4% and anticipates mid to high-single-digit growth in underlying EPS.
The finalised acquisition of Profi in early 2025 is expected to contribute €3bn in net sales.
The completed closure of underperforming Stop & Shop stores in 2024 is estimated to affect reported net sales for 2025 by $550m to $575m.
The company expects the cessation of tobacco sales to influence Albert Heijn's franchised store net sales for the first half-year and will impact reported and comparable store sales in Europe by one percentage point throughout 2025.
Ahold Delhaize chief financial officer Jolanda Poots-Bijl stated: “With our strong market positions, our financial strength and the great foundational work we have carried out over the last few years, I am confident that we are well positioned to deliver on our Growing Together plans. We will stay focused on doing the right thing for the long-term health and success of our business.”