Ahold Delhaize Sees Marginal Pro-Forma Net Sales Increase In Q1
Ahold Delhaize has posted a 0.6% increase in pro-forma net sales in the first quarter of its financial year (at constant-currency rates), recording €15.8 billion worth of sales for the period.
The retailer, which operates the Albert Heijn and Delhaize banners, among others, posted an overall net-sales increase of 61.4%, to €15.9 billion, following the merger of the Ahold and Delhaize businesses last year.
Commenting on its performance, chief executive Dick Boer said, “Ten months after the merger of Ahold and Delhaize, we are fully on track with the integration, and we are delivering on our synergy targets. We are driving forward our integration programmes and continue to focus on sharing best practices across and within regions, as we aim to further strengthen our great local brands to ensure they remain customer focused, close to their communities, and positioned to win in their markets.”
The group saw its pro-forma underlying operating income rise 8.1%, to €604 million, in the period, while pro-forma underlying operating margin increased to 3.8%, up from 3.6% in the same period last year.
In the US, the group’s largest market, Ahold USA, saw its pro-forma net sales decrease by 1.4%, citing ‘ongoing deflationary pressures’ and competitive closures from last year. Its Delhaize America business posted a 0.1% pro-forma sales increase, however.
In the Netherlands, pro-forma sales were up 3.9% for the period, driven by ‘sales growth at our supermarkets and continued strong growth at BOL.com and AH.nl’, according to a retailer statement. In Belgium, however, sales declined 1.1%, with the average basket size decreasing.
“The Netherlands, again, reported strong performance. Albert Heijn continued to improve and renew its product range, both in supermarkets and online,” said Boer. “BOL.com grew its share of Plaza sales, now offering more than 15 million products, and increased its customer base in Belgium.”
Ahold Delhaize added that it remains committed to delivering net synergy savings of €500 million in 2019, incremental to underlying operating income. As of Q1 2017, the group has realised €56 million worth of synergy savings.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up for ESM: The European Supermarket Magazine.