Ahold Delhaize Swings to 4Q Net Loss on Higher Costs -- Update
17 February 2021 - 6:56PM
Dow Jones News
By Matteo Castia
--Ahold Delhaize posted a fourth-quarter net loss of EUR9
million
--EUR210 million hit booked in the quarter from the coronavirus
pandemic
--The grocer swung to loss mainly due to U.S.-related
exceptional costs of EUR841 million
Koninklijke Ahold Delhaize NV reported Wednesday a swing to net
loss for the fourth quarter of 2020 on higher costs associated with
its U.S business.
The Dutch grocer posted a net loss of 9 million euros ($10.9
million) for the quarter, compared with a profit of EUR544 million
in the year-earlier period. Ahold Delhaize said the decline in
profitability was due primarily to previously announced provisions
for U.S. multi-employer pension plan withdrawal and settlement
agreements, which amounted to EUR841 million.
Coronavirus-related costs amounted to EUR210 million in the
fourth quarter and EUR680 million in the whole of 2020, it
added.
Analysts had forecast the company to make a quarterly net profit
of EUR298 million.
Net sales for the quarter rose to EUR19.60 billion from EUR17.38
billion the prior year. In the U.S., net sales jumped 19% on the
year to EUR11.43 billion. Analysts had forecast group net sales to
stand at EUR18.59 billion.
The board declared a yearly dividend of 90 European cents, up
from 76 European cents a year earlier.
Full-year underlying operating profit and revenue came in at
EUR3.59 billion and EUR74.74 billion, respectively.
The company said it remains committed to its EUR1 billion share
buyback program, but that the initiative will continue to remain
subject to macroeconomic developments and changes in corporate
activities such as large acquisitions.
Ahold Delhaize added it expects continued significant
uncertainty this year due to the pandemic.
Write to Matteo Castia at matteo.castia@dowjones.com
(END) Dow Jones Newswires
February 17, 2021 02:41 ET (07:41 GMT)
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