Company Reports

Koninklijke Ahold Delhaize was formed after a 2016 merger and today is one of the Top-10 grocers in the US and holds several leading positions in European markets. Among Ahold’s 15 banners, its prized asset, Albert Heijn, commands nearly 40% of the Dutch grocery market and is the most profitable chain of the group.

Koninklijke Ahold Delhaize’s second-quarter earnings included year-over-year revenue growth of 1.9% at constant exchange rates and an underlying operating margin of 3.9%, down 0.1 percentage points. Shares were flat intraday on Aug. 5.

Koninklijke Ahold Delhaize’s first-quarter 2026 results included year-over-year revenue growth of 2% at constant exchange rates and an underlying operating margin of 4%, up 0.3 percentage points. Shares were down around 3% on May 6.

Koninklijke Ahold Delhaize’s full-year 2025 results included net sales growth of 5.9% at constant exchange rates, an underlying operating margin of 4%, and 5% EPS growth. Shares rose nearly 10% at the market open on Feb. 11.

Koninklijke Ahold Delhaize was formed after a 2016 merger and today is one of the Top-10 grocers in the US and holds several leading positions in European markets. Among Ahold’s 15 banners, its prized asset, Albert Heijn, commands nearly 40% of the Dutch grocery market and is the most profitable chain of the group.

Koninklijke Ahold Delhaize’s third-quarter earnings included 6.1% revenue growth at constant exchange rates and an underlying operating margin of 4.1%, up 0.3 percentage points. The company announced a EUR 1 billion share repurchase program to start in January 2026.

Koninklijke Ahold Delhaize was formed after a 2016 merger and today is one of the Top-10 grocers in the US and holds several leading positions in European markets. Among Ahold’s 15 banners, its prized asset, Albert Heijn, commands nearly 40% of the Dutch grocery market and is the most profitable chain of the group.

We are transferring coverage of four multinational grocers: Tesco, Sainsbury’s, Carrefour, and Ahold Delhaize. Tesco and Sainsbury’s are the largest grocers in the UK. Carrefour operates across Europe and Latin America, while Ahold is a leader in several European markets and North American regions.

Koninklijke Ahold Delhaize was formed after a 2016 merger and today is one of the Top-10 grocers in the US and holds several leading positions in European markets. Among Ahold’s 15 banners, its prized asset, Albert Heijn, commands nearly 40% of the Dutch grocery market and is the most profitable chain of the group.

Ahold Delhaize reported its second-quarter fiscal 2025 results with net sales up 6.5% at constant exchange rates and underlying operating margin of 4.0%. Shares rose 1% intraday.

Ahold Delhaize saw 7% growth in reported sales, comfortably outpacing company-compiled consensus estimates. The company confirmed its full-year guidance of 4% underlying operating margin and mid- to high-single-digit earnings per share growth. Shares rose around 5% at market open on May 7.

We maintain our EUR 32.50 and $34 fair value estimates for no-moat Ahold Delhaize after the firm reported fourth-quarter results in line with our expectations. The firm reached its fiscal 2024 profitability target, supported by strong cost savings across regions. Guidance for 2025 was lower than expected with underlying operating margin expected to remain flat year over year. Shares fell around 5% following the announcement, which we think is largely a result of light US performance. Nevertheless, we think the firm’s investments and store closures will ultimately benefit the firm’s positioning in the long term.

We maintain our EUR 32.50/$36 fair value estimates for no-moat Ahold Delhaize after the firm reported third-quarter results in line with our estimates and slightly above company-compiled consensus. Management reiterated its 2024 guidance, including operating margin of at least 4.0% and EPS to be around fiscal 2023 levels at constant-currency rates, which we think is attainable. The firm also announced a share buyback program of EUR 1 billion, which will commence in 2025. Shares were up around 7% after the release thanks to the consensus beat and we view the stock as fairly valued.

Koninklijke Ahold Delhaize is one of the largest grocers in the United States with almost $60 billion in sales across the country. It holds the number-one or number-two position in most of its markets with Albert Heijn in the Netherlands the group's most prized asset, commanding over 37% of Dutch market share, accounting for 55% of total European sales. The company has generally managed its expansion and operations prudently, with low levels of financial leverage and a strategy of financing its dividend and share buybacks using its free cash flow.

Ahold Delhaize released second-quarter results with sales up 0.7% at constant exchange rates versus up 0.3% for company-compiled consensus, driven by Europe (sales up 4.3% versus up 1.3% up for consensus) with US sales down 1.5% (versus down 0.4% for consensus). Like-for-like sales growth for the group was up 0.6% with Europe up 2.4% (up 1.7% for consensus) and the US down 0.4% (down 0.5% for consensus). The biggest upside surprise was on the bottom line though with the group's underlying EBIT margin at 4.2% (versus 3.9% for consensus), driven by both regions with Europe at 3.7% (versus 3.4% for consensus) and the US at 4.7% (versus 4.4% for consensus).

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.

Ahold Delhaize released first-quarter results with sales, excluding gas, up 0.4% (up 1.3% at constant exchange rates). Sales were slightly ahead of company-compiled consensus expectations (EUR 21.728 billion versus EUR 21.530 billion for consensus), with underlying operating income of EUR 861 million (4% margin), ahead of the EUR 824 million estimate from consensus. This was driven by improvements in Europe (EUR 268 million versus expectations for EUR 260 million) and better-than-expected US performance (EUR 614 million versus EUR 594 million for consensus). Comparable sales growth for the first quarter was 0.8% for the US and 2.8% for Europe, versus 0% and 2.2% for consensus, respectively. In a strategic shift toward growth, the company is simplifying its operations and enhancing its Save for Our Customers program, notably through the Belgium Future Plan, which has successfully transitioned 76 of 128 stores to franchises, leading to increased customer frequency and larger basket sizes. Despite inflationary pressures, this has contributed to a 0.3 percentage point improvement in first-quarter margins across European operations, supporting consistent group-level margins and enabling enhanced investments in US customer value propositions amid reductions in supplemental nutrition assistance program benefits.

Ahold Delhaize released fourth-quarter and fiscal 2023 results with sales, excluding gas, up 1.8% and 3.9% respectively (up 1.9% and 3.8% respectively at constant exchange rates). Sales were slightly ahead of our annual estimates (EUR 88.65 billion versus EUR 88 billion in our model), with underlying operating income of EUR 3.604 billion (4.1% margin), slightly ahead of our EUR 3.583 billion estimate for the fiscal year. This was driven by the U.S. segment (EUR 2.553 billion versus our expectations for EUR 2.499 billion) with Europe largely in line (EUR 1.120 billion versus EUR 1.128 billion in our model). Comparable sales growth in fiscal 2023 was 2.3% for the United States and 6.5% for Europe, versus 1.9% and 6% in our model. In the U.S., the reduction in emergency federal supplemental nutrition assistance program benefits is still hitting top-line performance with net sales down 1.5% in the fourth quarter. Excluding one-offs and despite growth headwinds, the grocer was still able to maintain margins in the region, a testament to its continuing focus on efficiencies and cost-savings. In Europe, like-for-like sales growth was up 6.5% in the fourth quarter, signaling the first positive volume trend in over two years.

Koninklijke Ahold Delhaize is one of the largest grocers in the United States with over $60 billion in sales. It holds the number-one or number-two position in most of its markets with Albert Heijn in the Netherlands the group's most prized asset, commanding over 35% share. The company has generally managed its expansion and operations prudently, with low levels of financial leverage and a strategy of financing its dividend and share buybacks using its free cash flow.

No-moat Ahold Delhaize released third-quarter results, with sales excluding gas up 3% to EUR 21.9 billion (up 2.9% at constant exchange rates). Sales were slightly below company-compiled consensus of EUR 21.95 billion, with underlying operating income of EUR 839 million (3.8% margin) missing the consensus estimate of EUR 856 million. The profit miss was driven by the U.S. segment (EUR 567 million versus expectations for EUR 605 million) with Europe largely in line (EUR 287 million versus consensus of EUR 283 million). Comparable sales growth was 0.9% for the United States and 7% for Europe, versus 1.5% and 5.5% estimates for company-compiled consensus. In the U.S., the main driver of underperformance was the reduction in emergency federal Supplemental Nutrition Assistance Program benefits, which according to the company resulted in around a 4% headwind to sales growth in the quarter. This along with a changing sales mix and increasing shrink contributed to lower U.S. margins in the quarter, a negative development that the company sees as lasting only a couple of quarters. In Europe, excluding the impact of strikes in Belgium following the company's announcement of its intention to transform its integrated supermarkets into independently managed Delhaize stores, comparable sales were up 7.2%.