Ahold Delhaize results improve in Q3 | Progresiv
Ahold Delhaize has reported improved results for its fiscal third quarter, which it said was driven by synergies from the merger. 
For the quarter, pro forma net sales grew by 2.1% on a constant-currency basis to 15.1 billion euros (-1.1% reported), while underlying operating profit was up 13.3% to 595 million euros on the same basis (+9.8% reported).
The group gained market share across all its banners in the US, helping Ahold USA’s pro-forma sales edge up 0.8% to 5.43 billion euros on a constant-currency basis, with like-for-like sales up 0.7% (excl. fuel). Delhaize America, meanwhile, saw its sales grow by 2.2% to 3.78 billion euros, on LFL growth of 2.3%.
Meanwhile, in Europe, its Dutch operations continued to grow, with pro forma sales up 4.1% to 3.28 billion euros, on LFL growth of 3.6%. And in the CEE countries, sales grew by 4.2% to 1.4 billion euros (+3.1% constant-currency basis), as LFL sales edged up 0.4%. However, sales in Belgium were flat at 1.2 billion euros, and LFL sales edged down 0.3%.
CEO Dick Boer noted: “We reported a strong financial performance again this quarter as margins increased significantly, driven by synergies while savings from our “save for our customers” programs are continuously being reinvested in the business.”
The group now expects cumulative net synergies of 250 million euros for 2017, up from its previous forecast of 220 million euros. It also said it will increase its capital expenditure in 2018 to 1.9 billion euros, which will go towards “improving our store network, expanding our omni-channel offering and further developing our digital capabilities”. (www.kamcity.com)
