Dutch retail giant Ahold Delhaize has posted a 2.1% increase in third-quarter sales (at constant currency levels) to €15.1 billion, the company said this morning.
Net sales went up by 7.4% over the period, or by 10.9% at constant exchange rates.
The group said that its US business performed strongly in the period, gaining market share, while its online operation saw sales rise by more than 20%.
Capital Expenditure
In the statement, Ahold Delhaize also said that it was earmarking some €1.9 billion for capital expenditure next year. In addition, following the completion of a €1 billion share buy-back scheme this year, the group is planning a €2 billion share buy-back programme for 2018.
Dick Boer, CEO of Ahold Delhaize, commented, "We reported a strong financial performance again this quarter, as margins increased significantly, driven by synergies, while savings from our 'Save for our Customers' programmes are continuously being reinvested in the business.
"We continue to successfully implement our 'Better Together' strategy and expect cumulative net synergies for the full year of 2017 to increase, from €220 million to €250 million," Boer continued.
European Performance
In Europe, the group said that its Dutch business "continued to show good momentum, with solid comparable sales growth and strong margins, driven by synergies and other cost savings". Comparable net sales were up by 4.5%.
In Belgium, comparable sales were down 0.3%, when compared to the same period last year.
"Looking forward to 2018, we will maintain our balanced approach between managing our debt, funding growth, and returning excess liquidity to our shareholders," the group said.
Commenting on the group’s performance, Bruno Monteyne of Bernstein Research said, “Ahold Delhaize announced they will buy back double [the] value of shares in 2018, compared to 2017, and they expect FCF to increase next year. This sends a powerful signal to the market about their confidence in their business going into 2018. Capex for 2018 is increased to €1.9 billion, in line with our expectation of increased digital investment.”
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
