Supermarket group Ahold Delhaize sees improving momentum in the busy end-of-year holiday quarter, it said, after its third-quarter results beat market expectations aided by faster recovery in Europe.
Ahold's shares rose as much as 8% to €33.30 per share, their highest intraday price ever, potentially boosted by a Donald Trump victory in the US presidential election.
Bryan Garnier analyst Clément Genelot noted Trump was expected to leave the corporate tax unchanged, which he said was a key element in Ahold Delhaize's equity story.
The rally was also supported by strong US dollar on the back of the elections, as more than 60% of Ahold Delhaize's cash flows come from the United States, ABN Amro analyst Robert Van Jos said.
The Dutch group operates the Stop & Shop, Giant, Food Lion and Hannaford chains in the US.
Outlook
Ahold Delhaize expects its fourth-quarter margin profile in the US to be at least at the level of the previous quarter, finance chief Jolanda Poots-Bijl said in an analyst call.
The group is targeting €1 billion in cost reductions this year to offset pressure on profit margins as food price inflation falls and consumers curb their spending.
Asked about the outcome of the US election, CEO Frans Muller told Reuters he was confident in the resilience of the group.
"Since the 70s we have the footprint we have now and irrespective of the government and the White House President, we have been very well hosted in the US," he said.
The owner of Albert Heijn and Delhaize chains expects to also improve its performance in Europe in the fourth quarter, while US growth should be supported by price investments and customer value propositions.
That comes on the back of positive volume trends already seen in October, Muller said.
Ahold also announced a €1-billion share buyback for 2025 and reiterated its outlook for the full year 2024.
