Ahold Delhaize Reports Second Quarter Results, Sees Rise in U.S. Sales
ZAANDAM, THE NETHERLANDS - Ahold Delhaize’s U.S. retail banners—alongside their e-commerce sales—caused the parent company’s U.S. sales to jump well over 18 percent in its most recent quarterly.
“Our strong comparable-sales performance was aided by 127 percent [Q2] online sales growth, as we were able to convert higher demand for both new and existing customers,” CEO Frans Muller told analysts in a conference call. “We expect this strength in online sales to continue, and we’re now forecasting more than 75 percent U.S. online sales growth in 2020, which is higher than our previous expectation of more than 50 percent and the initial expectation of more than 30 percent growth.”
Notable takeaways from the Q2 results are as follows:
- Net sales were €19.1 billion ($22.7 billion), up 17.1 percent, or 15.9 percent at constant exchange rates
- In the U.S. and Europe, comp sales growth excluding gas was up 20.6 percent and 10.2 percent, respectively
- Net consumer online sales grew 77.6 percent at constant exchange rates Ahold Delhaize will reach €7 billion ($8.3 billion) net consumer online sales goal in 2020, one year ahead of plan
“COVID-19 has presented adversity across society and business,” Muller continued. “It has impacted our communities, associates, customers, and their families. I would like to thank associates across all our local brands and support offices for their outstanding service during this crisis. Their agility and dedication have ensured the safety of our stores and distribution centers, sustained the strength of our supply chains, and helped nourish families and local communities."
He added, "I am grateful for the commitment they have shown and continue to show. I am also pleased that we were able to make important investments in additional safety measures, enhanced associate pay and benefits, and significant charitable donations, including to several local food banks. Additionally, our brands hired more than 45,000 associates globally in Q2.”
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