January 29, 2023

Taylor Daily Press

Complete News World

Ahold Delhaize is strong in the US, saving in Europe

Unlike many retailers, Ahold Delhaize His expectations for this year. The supermarket group performed solidly in the first half of the year, albeit with a surplus bol.com And Delhaize are saved.

Less money for Bol.com

Ahold Delhaize is satisfied with the first half of the year. Sales were up 12%, mainly thanks to the US and the second quarter. In the US, net sales increased 7.7% at constant exchange rates, and in Europe 4.2%. The group also gained market share in “most markets”.

Online sales rose 4.8% in the second quarter, thanks mainly to 11.5% growth in the grocery segment. Post-corona growth, non-food e-commerce has fallen almost everywhere, including subsidiary Bol.com (-2.1%). So Ahold has decided to close the Delhaize web store Not to be brought to the fair this fall, the company now confirms. The group is waiting for better macroeconomic conditions.

Notably, Ahold Delhaize will also invest less in Bol.com. This will result in savings of between 250 and 300 million euros over three years, which the group can invest elsewhere. Perhaps in (partial or otherwise) acquisition of an American supermarket group Albertsons? A “steady and strong performance” in the US will fuel the rumor mill.

Opportunities abounded in Delhaize

In the Benelux, comparable sales increased by 1.8% in the second quarter, compared to a decline in the first quarter. While Albert Heijn and Bol.com both gained market share, the same was not said of Delhaize. CEO Franz Müller points to that Belgian supermarket chain ‘Little Lions’ initiative Catching up: After the first month of the program, Delhize has already seen a 15% increase in sales of ‘Little Lions’ products. This is an example of a common strategy of overinvesting in private labels and low-cost products during this time of inflation.

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Cutting costs and “refocusing and consolidating investments” are particularly important in the current tough economic environment. “In Belgium, we have identified operational and structural opportunities for the short to medium term, and we expect margins to stabilize and improve later this year,” Muller said. Read: Restructuring may be coming.

Total group earnings last quarter were better than expected and rose 11% to 59 cents per share. For the full year, Ahold Delhaize now expects underlying earnings per share to grow by more than 5%, while operating margin is estimated at around 4%.

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Unlike many retailers, Ahold Delhaize is raising expectations for this year. Despite savings at Bol.com and Delhaize, the supermarket group performed solidly in the first half of the year.