Koninklijke Ahold Delhaize N.V. ((ADRNY)) has held its Q1 earnings call. Read on for the main highlights of the call.
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The recent earnings call for Koninklijke Ahold Delhaize N.V. painted a largely positive picture as the company kicked off its fiscal year with notable achievements in sales growth and strategic initiatives. While challenges such as store closures and the dilutive impact of online sales were acknowledged, the overall sentiment remained optimistic due to the company’s strategic growth and successful integration efforts.
Strong Start to Fiscal Year 2025
Ahold Delhaize reported a robust beginning to its fiscal year 2025, with net sales increasing by 5% to €23.3 billion. The underlying operating margin was recorded at 3.8%, and there was a 4.6% rise in diluted underlying earnings per share. These figures underscore the company’s strong financial performance in the first quarter.
U.S. Online Sales Growth
The company experienced significant growth in its U.S. online sales, which surged by 17.9%. Food Lion, in particular, reported nearly 40% growth, bolstered by expanded delivery options and strategic partnerships with DoorDash and Instacart. This growth highlights the successful expansion of Ahold Delhaize’s online presence.
Integration of Profi
The integration of Profi into Ahold Delhaize’s portfolio was completed in the first quarter, adding over 1,700 stores to its European footprint. This integration contributed over €3 billion to sales throughout 2025, marking a significant expansion of the company’s market presence in Europe.
Loyalty Program Enhancements
Ahold Delhaize made significant strides in enhancing its loyalty programs, with U.S. brands delivering over 3.2 billion personalized offers, a 25% increase year-over-year. These enhancements are expected to drive customer engagement and retention.
Food Lion’s Consistent Growth
Food Lion achieved an impressive milestone of 50 consecutive quarters of comparable store sales growth. This consistent performance was supported by strong online sales and community initiatives like Food Lion Feeds, which further solidified its market position.
Impact of Store Closures
The closure of Stop & Shop stores and the cessation of tobacco sales in the Netherlands and Belgium negatively impacted net sales growth by 1 percentage point. This challenge was acknowledged as a factor affecting overall sales performance.
Dilutive Impact of Online Sales
Despite improvements in profitability, online sales in both the U.S. and Europe regions were reported to be dilutive to overall margins. This highlights an area where the company may need to focus on improving efficiency.
Profi EBIT Margin Impact
The integration of Profi had a modest negative impact on net income and was mildly dilutive for the EBIT margin in Europe. This was noted as a challenge that the company is addressing as part of its integration strategy.
Forward-Looking Guidance
During the earnings call, Ahold Delhaize provided forward-looking guidance that emphasized continued growth and strategic investments across its U.S. and European operations, despite a challenging macroeconomic environment. The company maintained its full-year guidance, expecting mid- to high-single-digit EPS growth. It plans to leverage its omnichannel strategies and loyalty program enhancements to drive market share and customer engagement.
In summary, Ahold Delhaize’s earnings call reflected a positive outlook for the fiscal year, with strong sales growth and strategic initiatives driving optimism. While challenges such as store closures and the dilutive impact of online sales were noted, the company’s strategic growth and successful integration efforts were key takeaways from the call.