Ahold Delhaize reports higher margins with strong synergy delivery and resilient sales
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Net sales increased by 65.1% to €15.9 billion (up 61.4% at constant exchange rates)
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Net income increased by 72.8% to €356 million (up 68.2% at constant exchange rates)
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Pro forma Q1 net sales increased by 2.9% to €15.8 billion (up 0.6% at constant exchange rates)
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Pro forma underlying operating income increased by €45 million to €604 million, up 8.1%
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Pro forma Q1 underlying operating margin increased to 3.8%, compared to 3.6% in Q1 2016
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Strong free cash flow of €197 million, with increased capital expenditure compared to Q1 2016
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Integration on track, with net synergies of €56 million delivered in the first quarter
Zaandam, the Netherlands, May 10, 2017
- Ahold Delhaize, a leader in supermarkets and eCommerce
with market-leading local brands in 11 countries, published solid first quarter results for 2017 today,
including an improved pro forma underlying operating margin for the Group.
Dick Boer, CEO of Ahold Delhaize, said: “We are pleased to report a resilient first quarter performance
with an increase in margins for the Group despite the ongoing deflationary environment in the United
States. We continue to make significant progress on the implementation of our Better Together strategy,
investing in our customer proposition, while improving margins.
“Ten months after the merger of Ahold and Delhaize, we are fully on track with the integration and we
are delivering on our synergy targets.
We are driving forward our integration programs and continue to
focus on sharing best practices across and within regions, as we aim to further strengthen our great
local brands to ensure they remain customer-focused, close to their communities and positioned to win
in their markets.
“In the United States, although sales were impacted by continuing price deflation, adverse weather and
the timing of Easter, we were able to offset the impact on margins due to the delivery of strong synergy
savings in the quarter. Although deflationary pressure was in line with previous quarters, it improved
towards the end of the first quarter and we expect sales performance to improve in the second quarter
and to operate in a slightly inflationary environment in the second half of the year.
“The Netherlands again reported strong performance. Albert Heijn continued to improve and renew its
product range, both in supermarkets and online. Bol.com grew its share of Plaza sales, now offering
more than 15 million products, and increased its customer base in Belgium.
“In Belgium, sales performance was stable compared to the previous quarter, and underlying operating
margin was broadly in line with last year. Sales growth in Central and Southeastern Europe was driven
by Romania and Serbia, with stable margins for the region, supported by margin improvements in the
Czech Republic and Serbia.
“We are encouraged by the positive development of the combined free cash flow for the Group despite
higher capital expenditure. This allows us to continue investing in key channels and businesses, while
returning excess liquidity to our shareholders.
“For the full year, we reiterate our target of realizing €220 million net synergies, including €56 million
realized year to date and expect that the full year 2017 underlying operating margin for the Group will
increase compared to 2016.”
Ziet er erg goed uit!! Marges zijn zelfs verbeterd en de impact van de deflatie is opgevangen