Ahold Delhaize sees 1.8% increase in second quarter sales | Progresiv

Netherlands-based Ahold Delhaize has posted a 1.8% increase in pro forma net sales, at constant exchange rates, to 16 billion euros, for the second quarter of its financial year.

Pro forma underlying operating income increased 11.4% to 626 million euros in the period, while pro forma underlying operating margin was 3.9%, compared to 3.6% in the same quarter last year.

“We are pleased to report a strong set of results,” sad Dick Boer, Ahold Delhaize chief executive. “Sales improved across the board and the group underlying operating margin increased by 30 basis points to 3.9% as merger synergy savings continued to track ahead of projections.

“A year after the merger between Ahold and Delhaize, the integration of the two companies is fully on track and delivering results as we continue to focus on strengthening our local brands through our Better Together strategy. We expect to achieve gross synergies of 750 million euros by 2019, of which 250 million euros will be reinvested in our brands.”

In The Netherlands, sales rose 5.6% on a pro forma basis to 3.42 billion euros, and 4.8% on a half year basis to 6.72 billion euros. ‘Comparable sales grew by 4.9%, as a result of both strong online sales growth and growth at our supermarkets,’ the retailer said.

In Belgium, pro forma sales were up 0.2% in the quarter to 1.258 billion euros, however, on a half year basis, sales were marginally down by 0.4%, to 2.439 billion euros. ‘While the affiliated stores continued to perform well, the average basket size at company-owned stores decreased versus the same quarter last year,’ the company said.

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Its Ahold USA business was flat (0.0%) in the quarter on a pro forma basis at constant currency rates, standing at 5.934 billion euros, while Delhaize America was up 1.2% to 3.989 billion euros.

“We look toward the second half of the year with confidence and expect our underlying operating margin for the full year 2017 to be broadly in line with the first half of the year, with 220 million euros net synergies for 2017,” commented Boer. (www.esmmagazine.com)