Ahold Delhaize ends FY on solid note | Progresiv
Ahold Delhaize has reported solid sales growth for its fiscal fourth quarter, helping it end the year on a positive note in pro-forma terms. 
For the quarter, group sales were up 2.5% to 15.8 billion euros on a constant-currency, pro-forma basis (-2.8% pro-forma reported basis). The growth was led by results in The Netherlands, where sales grew by 6.4%, and by its outlets in the CEE region, where sales grew by 2.3%. The group also recorded identical 1.4% sales growth at its Ahold USA and Delhaize America units, while sales in Belgium were up 0.8%.
The group said sales in the US were slightly improved and it expects to see market share gains at Delhaize America. The group also raised its market share in The Netherlands, helped by a 29.8% jump at the Bol.com site. Results were also stable in Belgium and in Central and Southeastern Europe.
The results meant Ahold Delhaize’s full-year sales grew by 1.7% to 62.7 billion euros on a pro-forma, constant-currency basis (+0.6% reported). Sales grew by 5% in The Netherlands, with like-for-like sales up 4.5%. Meanwhile, sales in the CEE region grew by 3.4% (LFL +1%), while Delhaize America recorded a 1.3% increase (LFL +1.3%), and Ahold USA sales edged up 0.1% (flat LFL). Sales in Belgium, however, remained flat while LFL sales edged down 0.2%.
Ahold Delhaize said it expects full-year pro-forma underlying operating margin to be 3.9%, in line with its forecasts. However, free cash flow delivery is expected to be “significantly ahead of expectations”, which it attributed to “improved working capital performance, capital expenditure slightly lower than forecast and higher dividends from joint ventures”. (www.kamcity.com)
