Ahold Delhaize reports higher margins with strong synergy delivery and resilient sales
10 May 2017 - 2:45PM
- Net sales increased by 65.1% to €15.9 billion (up
61.4% at constant exchange rates)
- Net income increased by 72.8% to €356 million (up
68.2% at constant exchange rates)
- Pro forma Q1 net sales increased by 2.9% to €15.8
billion (up 0.6% at constant exchange rates)
- Pro forma underlying operating income increased
by €45 million to €604 million, up 8.1%
- Pro forma Q1 underlying operating margin
increased to 3.8%, compared to 3.6% in Q1 2016
- Strong free cash flow of €197 million, with
increased capital expenditure compared to Q1 2016
- 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."
170510_Ahold Delhaize Q117_Interim
Report
170510_Ahold Delhaize Q117_Analyst Presentation
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announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ahold Delhaize via Globenewswire
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