Ahold Delhaize: Fresh Growth Strategy Ahead of Expectations, but Bottom Line Unchanged

In an announcement ahead of its 2024 Strategy Day, Ahold Delhaize published its midterm financial and strategic ambitions (2025-2028). These include, among others, a 4% net sales CAGR (versus 1.7% in our model), an underlying operating margin of 4% (in line with our estimates), capital expenditures of 3% of net sales, and underlying EPS growth at a high-single-digit CAGR compared with 2024. Additionally, the company aims for EUR 9 billion in cumulative free cash flow, EUR 1 billion annual share buybacks, and an increasing dividend per share, all broadly in line with our estimates except for the sales growth aspiration.