Ahold Delhaize posts strong Q1 sales growth and reaffirms 2025 outlook
Ahold Delhaize, a prominent food retail group, has recently announced its first-quarter financial results for fiscal year 2025. The company reported a notable increase in net sales, reaching €23.28 billion ($26.41 billion). This represents a 5% growth at constant exchange rates and a 7.1% rise at actual exchange rates.
The growth in sales can be attributed to several factors, including the acquisition of Profi, a 3.3% increase in comparable sales (excluding gasoline), and the opening of new stores. Profi, a leading supermarket and convenience store chain, has added over 1,700 stores to Ahold Delhaize’s European portfolio in the CSE region.
Online sales also saw a significant increase during the first quarter, rising by 13.7% at constant exchange rates. This growth was primarily driven by the strong performance of online grocery sales in the US and European markets, as well as increased sales at bol.com.
In terms of regional performance, sales in the US climbed by 1.8% to €13.9 billion, while European net sales showed a robust performance with a 10.1% increase, reaching €9.3 billion. Despite these positive results, the underlying operating margin for Ahold Delhaize experienced a slight contraction of 0.2 percentage points, primarily due to price investments in the US.
The company’s International Financial Reporting Standards (IFRS) operating income for the first quarter was reported at €880 million, maintaining an IFRS operating margin of 3.8%. Diluted earnings per share (EPS) for the quarter were noted at €0.60, marking an 11.5% increase year-on-year at actual currency rates.
Looking ahead, Ahold Delhaize reaffirmed its full-year outlook for 2025, which includes an underlying operating margin around 4% and mid to high-single-digit growth in underlying EPS. The recent acquisition of Profi is expected to contribute €3 billion in net sales, while the closure of underperforming Stop & Shop stores in 2024 may affect reported net sales by $550 million to $575 million.
Despite uncertainties in the macroeconomic climate, particularly regarding tariff policies and currency fluctuations, Ahold Delhaize remains confident in its ability to deliver on its long-term growth plans. Chief Financial Officer Jolanda Poots-Bijl stated, “With our strong market positions and financial strength, we are well positioned to deliver on our Growing Together plans and ensure the long-term success of our business.”
The information provided in this article is sourced from Retail Insight Network, a trusted publication owned by GlobalData. It is important to note that this content is for general informational purposes only and should not be considered as professional advice. It is recommended to seek expert guidance before making any significant decisions based on the information presented here.
