Ahold Delhaize: Reports First Quarter 2020 Results

Zaandam / NL. (ad) Dutch Ahold Delhaize Group, one of the world’s largest food retail groups and a leader in both supermarkets and eCommerce, reports first quarter results. Summary:

• Net sales were EUR 18.2 billion, up 14.7 percent, or 12.7 percent at constant exchange rates
• In the U.S. and Europe, comp sales growth excluding gas was up 13.8 percent and 9.8 percent, respectively
• Net consumer online sales grew 37.7 percent at constant exchange rates
• Operating income was EUR 964 million, up 40.0 percent at constant exchange rates
• Underlying operating margin was 5.3 percent, up 0.9 percent points from the prior year
• Diluted underlying EPS was EUR 0.59, up 49.5 percent; diluted EPS was EUR 0.59

Comments from Frans Muller, President and CEO of Ahold Delhaize: «I greatly admire the dedication shown by the associates across our brands, who have stepped up to serve their local communities in the face of the immense challenges arising from the Covid-19 crisis. We remain relentlessly committed to protecting the health and safety of associates and customers, and living up to our values, two of which are ‘care’ and ‘teamwork.’

«Clearly, our Q1 sales performance across all geographies was impacted by the unprecedented demand and pressures created by the Covid-19 outbreak. We have responded by implementing additional safety and protective measures, enhancing associate pay and benefits, and making charitable donations to support local communities. The costs related to our efforts will more significantly impact subsequent quarters. Nevertheless, we maintain our full-year outlook that our group underlying operating margin will be broadly in line with 2019.

«Protecting the health and safety of our associates and customers remains our first and foremost priority, along with operating our brands and supply chains smoothly. We will keep monitoring and learning from changes in consumer shopping patterns and behavior. While it is still too early to know which paradigm shifts will emerge from the Covid-19 crisis, we continue to prioritize investments in accelerating our digital and omnichannel capabilities, as well as improving our store fleet, in order to grow our share of wallet.

«Separately, I’d like to welcome Natalie Knight, who was appointed as our CFO on April 8. With her demonstrated leadership in financial discipline and business transformation efforts, she is ideally qualified to help us accelerate our Leading Together strategy.»

For additional information please read the Company’s PDF file below (3611 KB):

20200507-AHOLD-Q1-2020.