Belgian-Dutch retail group Ahold Delhaize has reported a modest increase in net sales, reaching €23.3bn ($24.1bn) in the fourth quarter (Q4) of fiscal 2024 (FY24), up 0.6% at constant exchange rates and 1% at actual rates compared to the same period of the previous year.
The growth is attributed to a 1.4% surge in comparable sales, excluding gasoline and the opening of new stores, despite the offsetting effects of Stop & Shop closures, FreshDirect's divestiture and a dip in gasoline sales.
During the quarter, online sales grew by 5.8% growth at constant exchange rates.
However, the company’s underlying operating margin contracted slightly to 4.1% in Q4, as commendable results in Europe were counterbalanced by price investments and reduced nonrecurring items in the US market.
Ahold Delhaize’s diluted EPS [earnings per share] for the quarter stood at €0.41, while its underlying diluted EPS was €0.69, reflecting a 6.6% decline at actual exchange rates compared to the previous year.
In the US, net sales totalled €13.9bn, down by 0.6% at constant exchange rates and up 0.2% at actual exchange rates.
In Europe, the company’s net sales rose 2.4% at constant exchange rates to €9.4bn.
European online sales jumped 10.9%, propelled by bol.com and Albert Heijn's double-digit advancements.
For the full year, the company saw a 0.9% increase in net sales at constant rates, while comparable sales excluding gasoline grew by 1.2%.
The underlying operating margin for the year was 4%, and diluted underlying EPS stood at €2.54.
Ahold Delhaize president and CEO Frans Muller stated: “Without a doubt, 2024 has been a dynamic year with a lot to deal with: inflation, volatility in commodities and supply chain, social and political tensions and fast-paced changes due to new technologies that impact how we work and how we live.
“Creating value for customers and catering to their local circumstances and specific needs continues to be a tangible differentiator for our business. The great thing about being a grocery retailer is that we are in constant connection with our customers. Through our steady and growing market shares and strong relative brand strength indicators, we can see we are clearly doing the right things for them. This gives us confidence as we look to accelerate growth and earnings momentum in 2025.
Looking ahead to 2025, Ahold Delhaize anticipates the recent acquisition of Profi to boost net sales by €3bn.
The completion of Stop & Shop store closures in 2024 is expected to reduce reported net sales by $550m-$575m.
The company anticipates an underlying operating margin for FY25 of 4% and forecasts its underlying EPS to rise by mid to high-single digits, assuming current exchange rates.
