Sponsored By

Ahold Delhaize posts soft Q4 numbers in U.S.

Overall the grocer had a good 13 weeks

Bill Wilson, Senior editor at Supermarket News

February 14, 2024

2 Min Read
Ahold Delhaize.jpg
The divestment of Fresh Direct will reduce the amount of 2024 reported net sales and online sales in the U.S. by $600 million.Ahold Delhaize

Ahold Delhaize wants to save the customer money, so much so it is a centerpiece in the retailer’s strategy. 

For the fourth quarter, the grocer’s Save for Our Customers program created over 1.25 billion Euros in cost savings, which is 29% more than what was generated last year. 

However, the Q4 financial results were mixed for Ahold Delhaize, which reported overall year over year increases in net sales (1.9%), comparable sales excluding gasoline (1.8%), online sales (3.6%), and net consumer online sales (2.6%). The news was a little different in the U.S., where stores recorded year-over-year declines in all four areas (down 1.5% in net sales and 1.9% in online sales and net consumer online sales). Comparable sales declined by 1% vs. Q4 2022. 

“[It was] in line with our expectations as inflation [in the U.S.] moderated further and Supplemental Nutrition Assistance Program (SNAP) headwinds remained,” said Frans Muller, president and CEO of Ahold Delhaize. “Excluding one-offs, the U.S. underlying operating margin was consistent with the prior year, highlighting our strong focus on managing costs to match top-line deflation trends.

“In addition, the divestment of FreshDirect was finalized in the quarter, which contributed a modest uplift to margin. For the coming quarters, this margin upside will help fund investments into our U.S. brands' store portfolio and customer value propositions.”

Related:DoorDash coming to all Ahold Delhaize USA banners

The divestment of Fresh Direct will reduce the amount of 2024 reported net sales and online sales in the U.S. by $600 million. 

For fiscal year 2023 overall Ahold Delhaize reported year-over-year increases in net sales (3.8%), comparable sales growth excluding gasoline (3.9%), online sales (6.1%), and net consumer online sales (5.9%). In the U.S., net sales were up 1.8% compared to FY 2022, while comparable sales growth excluding gasoline sales rose 2.3%, and online sales and net consumer online sales both increased 5.1%.

 

Read more about:

Ahold Delhaize USA

About the Author

Bill Wilson

Senior editor at Supermarket News

Bill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.

Stay up-to-date on the latest food retail news and trends
Subscribe to free eNewsletters from Supermarket News

You May Also Like