With the release of its first quarter 2023 financial results, Ahold Delhaize is once again showing its retail industry prowess with a boost in net sales. The report details impressive signs of growth, including Q1 Group net sales of €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:
“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.
Stay tuned to Deli Market News for more updates from the industry.
