In This Article:
Release Date: May 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Koninklijke Ahold Delhaize NV (ADRNY) reported a solid first quarter with a 5% increase in group net sales at constant rates, reaching 23 billion.
-
The company's underlying operating margin was 3.8%, driven by strong performance in Europe.
-
Online sales increased by 13.7%, marking the fourth consecutive quarter of double-digit growth in online grocery sales.
-
The addition of Romanian food retailer Profifi strengthens the company's market position and sets the region up for additional growth and synergies.
-
The company's climate targets have received validation from the Science-based Targets initiative, highlighting its commitment to sustainability.
Negative Points
-
Profitability in the US was impacted by price investments aimed at accelerating growth.
-
The ongoing geopolitical and macroeconomic volatility presents challenges to the company's operations.
-
Despite strong online growth, the company faces intense competition in the digital retail space.
-
The integration of new acquisitions, such as Profifi, may present operational challenges and require significant resources.
-
Maintaining a balance between price investments and profitability remains a critical challenge for the company.
Q & A Highlights
Q: Can you provide more details on the sales growth and the factors driving it? A: Our sales growth in Q1 was 5% at constant rates, reaching 23 billion. This growth was driven by positive volumes in both Europe and the US. In particular, our online sales saw a significant increase of 13.7%, marking the fourth consecutive quarter of double-digit growth in online grocery sales. This validates the strategic importance of our online channel. - CEO
Q: How did the recent acquisition of Romanian food retailer Profi impact your strategic goals? A: The acquisition of Profi aligns with our ambition to be the number one or two in the markets where we operate. It sets the region up for additional growth and synergies, strengthening our market position and supporting our strategic goals. - CEO
Q: What are the current challenges you face in the US market, and how are you addressing them? A: In the US, while our margins remain strong, profitability was impacted by price investments aimed at accelerating growth. We are focusing on maintaining strong market positions and leveraging our financial strength to navigate these challenges. - CFO
Q: Could you elaborate on your sustainability initiatives and their progress? A: Our commitment to healthy communities and the planet remains unchanged. We are pleased with the external recognition of our strategy, such as the validation of our climate targets by the Science-based Targets initiative. Our annual report details our progress in these areas. - CEO