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Koninklijke Ahold Delhaize NV ADRNY

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Ahold Delhaize Reports Solid Q1 With Confident 2021 Outlook and Raise in Guidance

Analyst Note

| Ioannis Pontikis, CFA |

Koninklijke Ahold Delhaize released first-quarter results with sales up 5.8% (at constant currency) to EUR 18.3 billion, ahead of company-compiled consensus expectations of EUR 17.4 billion. Comparable sales growth was up 1.7% and 8.3% for the United States and Europe, respectively, versus down 1.4% and up 1.1% for consensus. Online sales growth across regions continued to be strong (up 188.3% and 103.3% in the U.S. and Europe, respectively), reflecting the group's resilience and solid presence in online as well as the long-lasting COVID-19 impact on consumer behavior. The underlying operating margin for the group was 4.6%, down 60 basis points versus last year, a function of tough 2020 comparables due to robust sales growth and operating leverage benefits that preceded significant investments related to the coronavirus to enhance pay and benefits, as well as extra costs associated with safety measures in stores.

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Company Profile

Business Description

Ahold Delhaize is the product of the July 2016 merger between Netherlands-based Ahold and Belgium's Delhaize, forming the fourth- largest grocer in the U.S. and a top player in many parts of Europe. The United States is the largest market, accounting for 62% of pro forma sales, with Ahold Delhaize the leading grocer on the Eastern seaboard. The U.S. store network stretches from Maine to Georgia and includes such banners as Stop & Shop, Giant Carlisle, Giant Landover, Food Lion, Hannaford, and Peapod. The Netherlands and Belgium account for 21% and 8% of sales, respectively, and Ahold Delhaize holds the number-one and number-two positions in these countries. A further 9% of sales come from Central and Southeastern Europe, including the Czech Republic, Greece, Romania, and Serbia.

Contact
Provincialeweg 11
Zaandam, NH, 1506 MA, Netherlands
T +31 886595100
Sector Consumer Defensive
Industry Grocery Stores
Most Recent Earnings Mar 31, 2021
Fiscal Year End Jan 3, 2022
Stock Type
Employees 414,000

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