Today, Ahold Delhaize released its 2023 Q3 results. The retail company sales grew by 3.1%, and its local brands have made many accomplishments. In fact, the company’s locations have been agile in expanding their assortments with high-quality own-brand products at great prices and swift to pass on price reductions where possible. They continue to invest in and leverage the power of Ahold Delhaize’s digital capabilities to provide customers with “meaningful, highly personalized discounts tailored to their needs and wallets. As a result, customers continue to place their trust in our brands, which is clearly reflected in positive market share growth across our markets,” the company said in an official statement.
Frans Muller, President and CEO of Ahold Delhaize, commented, “During these times of heightened human suffering around the world, I am proud of our associates for their hard work and unwavering commitment to supporting their local communities. Inflation, increasing interest rates, and changes in U.S. government support remain tangible headwinds and are creating anxiety for many customers. Our great local brands have been agile in expanding their assortments with high-quality own-brand products at great prices and swift to pass on price reductions where possible. They continue to invest in and leverage the power of our digital capabilities to provide customers with meaningful, highly personalized discounts tailored to their needs and wallets.”
THE COMPANY’S ACHIEVEMENTS BY COUNTRY
“With our strong portfolio of international brands, we grew comparable store sales by 3.1% in the third quarter,” Muller said. “At a Group level, we delivered an underlying operating margin of 3.8% and diluted underlying EPS of €0.58. While both these metrics are lower year-over-year, around two-thirds of the EPS decline is linked to insurance-related adjustments and an unfavorable foreign exchange rate.”
In the U.S., excluding the impact of weather and calendar shifts, comparable sales grew by 1%. When looking at Europe, which has endured more pressure in the last two years than the U.S., “I am confident we are on the path to recovery. While inflation is also moderating in Europe, our major efforts to elevate and harmonize our customer value proposition accelerated comparable sales growth to 7% in the quarter,” Muller said. Delhaize Belgium announced that 51 stores have now signed agreements with independent buyers and started transitioning the first stores to the new operators in October. Excluding the effects of this transformation, comparable sales in Europe were up 7.2% and underlying operating margin exceeded prior year levels. In the Netherlands, “Albert Heijn and Bol had outstanding market share gains. And we are delighted to have completed the conversion of the first 15 Jan Linders stores to Albert Heijn in Q3,” Muller stated.