Beemster makes it better
Eiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperature
Ahold Releases Strong Q1 Results for 2016; Approaches Merger with Delhaize

Ahold Releases Strong Q1 Results for 2016; Approaches Merger with Delhaize


ZAANDAM, THE NETHERLANDS
Wednesday, June 1st, 2016

As Ahold continues to take steps closer to its impending merger with Delhaize, the company has released a strong Q1 2016 financial report, surging past analysts income predictions by nearly $16 million

Dick Boer, CEO, Ahold

“We continue to make good progress on our proposed merger with Delhaize, which we expect to complete in mid-2016,” shared Ahold CEO Dick Boer. “Working together towards this common goal reaffirms our view that the merger will create a better and more innovative retailer, capable of delivering enhanced value for our customers, associates, and shareholders.”

For its 2016 Q1 reportings, the company saw an adjusted operating income increase of 14.7% to $500.6 million (€449 million), which was higher than the $485.2 million (€434 million) average prediction that Bloomberg analysts revealed in a poll. Ahold’s said that solid store operations, a strong increase in online sales, improved profitability, and a strong free cash flow contributed to its net sales reaching $13.19 billion (€11.8 billion).

“We continue to deliver on our strategic objectives, with a good operational and financial performance in the first quarter,” Boer continued. “Our focus remains on serving our customers and delivering on our Simplicity program, in order to invest in our great local brands to ensure that we provide even more value and innovation.” 

Boer continued to state that the company’s Q1 reportings have placed them right on track to complete its Delhaize merger by the middle of this year. Once the merger is complete, Ahold estimates that an approximate return of $1.11 billion (€1.0 billion) will go back to shareholders through a capital return and reverse stock split. Current shareholders of Ahold with directly, or indirectly, hold 61%. Former Delhaize shareholders will directly, or indirectly, hold around 39% of the outstanding ordinary shares in the resulting combined company. 

Other highlights from the company’s Q1 2016 financial report are as follows:

    • Continued strong online sales growth, with net consumer sales up 27.4% at constant exchange rates
    • Underlying operating margin of 3.8% (Q1 2015: 3.5%)
    • 15.1% increase in Group underlying operating income (up 14.7% at constant exchange rates)
    • Strong free cash flow of €287 million (Q1 2015: €186 million)
    • Simplicity program and continued cost control driving improved profitability 

Graphic credited to Google Finance.

As of 5:36 PM GMT on June 1, Ahold shares were up 2.5% in Amsterdam trading to reach $22.78 (€20.37), this increase rasied the company’s market cap to $18.56 billion (€16.6 billion). Delhaize shares also rose 2% in Brussels, reaching to trade at $107.42 (€96.12) for a market cap of $11.01 billion (€9.85 billion).

As mid-2016 deadline for the merger fast-approaches, keep up with DeliMarket News as we continue to report on Ahold and Delhaize.

Ahold


Beemster makes it betterEiffel Tower - A creamy cow’s milk delight, featuring a chalky white rind and a cream-colored, buttery, soft interior that oozes when at the peak of ripeness and temperature

Have a new product, press release or story idea?

Let us know

In This Story


Ahold is an international retailing group based in the Netherlands and active in the United States and Europe.

The Delhaize Group Group is committed to offering its customers a locally differentiated shopping experience, to delivering superior value and to maintaining high social, environmental and ethical...

Good Food Media Network Releases 2018 Good Food Restaurants™ List

The company releases its annual rating and economic report offering insight into the purchasing practices of chefs and restaurants and their commitment to sustainable sourcing.
View Press Release

Charlotte-Based Hissho Sushi Debuts at Bank of America Stadium for Carolina Panthers’ 2018-2019 Season

The company provides visitors and Panthers fans sophisticated, fresh options like the California Roll, Spicy Tuna Roll, and Crispy Crab Roll.
View Press Release

P3 Named Official Protein Snack of UFC®

UFC® announced a new marketing partnership with Oscar Mayer®.
View Press Release

New Tuscanini Parchment Crackers Bring the Sun-Kissed Taste of Italy to America's Table

Three handmade varieties deliver a sophisticated touch to meals and light snacks.
View Press Release

WCMA Launches Workforce Committee to Address Labor Challenges

The Association's Inaugural Meeting is set for October 23 in Monroe, Wisconsin.
View Press Release

Chris Greer Named Continuous Improvement Manager for Master-Bilt

As Continuous Improvement Manager, Greer will drive operational excellence initiatives and be responsible for developing consistent improvement in the manufacturing operation at Master-Bilt.
View Press Release

The Big Chocolate Show

From cacao bean to confection, chocolate takes center stage in New York City.
View Press Release