Ahold Delhaize Reports Strong Increase in Q3 Results; Frans Muller Comments
ZAANDAM, NETHERLANDS - While inflation remains high across the United States and Europe, Ahold Delhaize is using the hurdle to show its commitment to its shoppers and has been rewarded with strong third-quarter sales. Despite hurdles, the retailer has reported group net sales of almost $22.5 billion, a 9.1 percent increase at constant exchange rates and a 20.8 percent increase at actual exchange rates.
“Empowering customer choice by providing great value and easy access to affordable and healthy food options is at the center of the customer value proposition in all of our 19 great local brands,” said Frans Muller, President and Chief Executive Officer. “Our positive market share development and resilient financial performance in Q3 highlights the trust customers continue to place in our brands. I am proud of these results and of our associates who consistently rise to meet the demands of these challenging times.”
In addition to growth of its overall group net sales, the retailer’s U.S. arm saw $14.7 billion in net sales. Other highlights from the report include:
- Group net consumer online sales increased by 11.5 percent at constant exchange rates, led by a robust performance in the U.S. and a return to growth in Europe
- Online sales in the U.S. segment were up 20.8 percent in constant currency. This builds on top of 52.9 percent constant currency growth in the same quarter last year
- Based on Q3 results, Ahold is increasing its full-year EPS outlook, and is now forecasting low-double-digit 2022 diluted underlying EPS growth versus the prior mid-single-digit guidance
“… despite increasing macroeconomic and geopolitical challenges, we continue to make important progress on delivering our strategy. Better-than-expected underlying U.S. results, foreign exchange benefits, and continued insurance gains from rising interest rates allow us to raise our full-year diluted underlying EPS guidance to low-double-digit growth. Operational excellence, tight cost control, and disciplined capital allocation continue to be important in these times,” continued Muller. “As such, we are working hard on a variety of initiatives across the company to maintain our industry-leading position of consistent and reliable performance, dependable cash flows, and shareholder returns. This is a track record we are proud of, and, in light of our continued expectations of strong free cash flow generation going forward, we are announcing the continuation of our annual share buyback program in 2023.”
To read more results from the company’s third quarter report, click here.
How will Ahold carry this growth into quarter four? Keep a tab open for AndNowUKnow to find out.