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Ahold Delhaize Releases Q1 2023 Financial Results; Frans Muller Comments

Ahold Delhaize Releases Q1 2023 Financial Results; Frans Muller Comments


ZAANDAM, THE NETHERLANDS
Friday, May 19th, 2023

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.

Frans Muller, President and Chief Executive Officer, Ahold Delhaize“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.

In its Q1 2023 financial results, Ahold Delhaize reported that 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

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.

Stay tuned to Deli Market News for more updates from the industry.

Ahold Delhaize
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