Ahold Delhaize Releases Q1 2023 Financial Results; Frans Muller Comments
ZAANDAM, NETHERLANDS - The results are in, and Ahold Delhaize has once again achieved a boost in net sales. The retailer recently released its first quarter 2023 financial results, pointing to impressive signs of growth. It was announced that Q1 Group net sales were €21.6 billion ($23.3 billion), up 6.3 percent at constant exchange rates and up 9.4 percent at actual exchange rates.
“Our brands’ ability to adapt their assortments and omnichannel customer journeys to rising consumer price sensitivity is resonating well with customers, and this is clearly reflected in our Q1 results,” said Frans Muller, President and Chief Executive Officer. “Comparable store sales excluding gas grew 6.2 percent in Q1. Leveraging these strong sales, we delivered an underlying operating margin of 4 percent and diluted underlying EPS growth of 10.5 percent. Our strong earnings performance was largely driven by a strong operating performance in the U.S., which partially offset increased energy costs in Europe and the impact of strikes in Belgium.”
Net consumer online sales for the first quarter increased by 5.9 percent at constant exchange rates. Grocery online sales increased 9.7 percent at constant rates, a press release stated.
Other highlights include:
- Q1 underlying operating margin was 4 percent, a decrease of 0.2 percentage points. Strong underlying U.S. margin partially offset declines in European margin and a reduction in GSO insurance gains
- Q1 IFRS-reported operating income was €822 million ($890.3 million) and Q1 IFRS-reported diluted EPS was €0.57 ($0.62)
- Q1 diluted underlying EPS was €0.61 ($0.66), an increase of 10.5 percent over the prior year at actual rates
“The U.S. brands continue to deliver consistent and strong performance. In the quarter, comparable sales grew by 8.1 percent, excluding weather and calendar shifts,” Muller continued. “We also delivered a strong underlying operating profit, driven by better shelf availability, as supply chains are much improved compared to a year ago. It is clear that customers are finding great value through our brands’ various omnichannel propositions. During the quarter, the loyalty programs at Food Lion, Stop & Shop, and Giant Food were named among ‘America’s Best Loyalty Programs 2023’ by Newsweek.”
More from the report can be found here. Keep reading ANUK for more updates.
