Ahold Delhaize Surprises friends and foes with higher-than-expected quarterly numbers. in Europe, Albert Hein And the Delhaize Among the stars thanks to our successful buying power campaigns.
In the third quarter, Ahold Delhaize had sales of €22.4 billion, up 9.1%. This is much better than analysts had previously predicted. Sales in Europe (+7.1%) and the US (+8.2%) are well targeted. Operating profit also increased by 2% to 887 million euros. The retailer managed to maintain an operating margin of 4.4%, which is very strong compared to its peers. However, margin is under pressure in Europe, at “only” 3.41%, versus 4.95% in the US.
The retailer says most of the group’s homegrown brands are gaining market share. In fact, lion food It saw a similar increase in sales on a quarterly basis in the US for a decade in a row, which the press release called an “amazing achievement”. We also congratulate Albert Heijn: The retailer continues to gain market share by striving to deliver value to its customers in an increasingly challenging environment. Expand view “Prijsfavorieten” (Preferred rates) The campaign “100 products under one euro” was a success and the loyalty program “My Albert Heijn Premium” now has more than 600,000 members.
Little Lions score goals
In Belgium, Delhaize sees a “substantial improvement” in comparable store sales. These good results are due in part to the success of the “Little Lions” buying power campaign: since its launch in June, Delhaize has recorded a 15% increase. That’s why the retailer is adding 100 more competitively priced products. And the improvement of the SuperPlus loyalty program is paying off. in home bowl.comNet sales increased by 5.6% driven by double-digit growth in sales partners. On a yearly basis, the online store gained 1% market share.
“Rising inflation, rising interest rates, slowing economic growth and the war in Ukraine are putting significant pressure on clients’ household budgets,” said Managing Director Frans Müller. “While external factors such as energy prices are out of our control, we have continued to work hard on the issues within our control, and I am pleased that we are making good progress. Ahold Delhaize is paying particular attention to costs more than ever before. However, the retailer is confident of that, thus raising its earnings forecast for the full year: EPS will increase by about 10%.
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Ahold Delhaize surprises friends and opponents with higher-than-expected quarterly numbers. In Europe, Albert Heijn and Delhaize were among the stars thanks to their successful purchasing power campaigns.