Solid Q1 for Ahold Delhaize | Progresiv
Ahold Delhaize has reported solid growth for its fiscal first-quarter, and said it continues to work on its ‘Better Together’ strategy. On a pro-forma basis, sales were up 2.9% to 15.8 billion euros (+0.6% constant-currency basis), even as underlying operating profit was up 8.1% to 604 million euros (+5.5% constant-currency). 
The results were helped by a 2.3% rise in sales at Ahold USA (-1.4% constant-currency), although like-for-like sales were down 1.8% (excl. fuel). Delhaize America recorded a 3.7% increase (+0.1% constant-currency), with flat LFL sales. Sales in the Netherlands were up 3.9% on 3.3% LFL growth, while sales in Central and Southeastern Europe rose by 4.2% (+4.4% constant-currency), on LFL growth of 1.7%. The only market to record a decline was Belgium, where sales were down 1.1% even as LFL sales declined by 0.6%.
CEO Dick Boer said: “We are pleased to report a resilient first quarter performance with an increase in margins for the Group despite the ongoing deflationary environment in the United States. We continue to make significant progress on the implementation of our Better Together strategy, investing in our customer proposition, while improving margins.”
The group has realised 56 million euros in net synergies in the year to date, and said it was on track to realise 220 million euros in synergies. It added that it will “continue investing in key channels and businesses, while returning excess liquidity to our shareholders.” (www.kamcity.com)
