Supermarket group Ahold Delhaize has reported higher-than-expected sales for the third quarter, driven by growth in comparable sales and net store openings, and announced a €1 billion ($1.1 billion) share buyback for 2025.
"In the US, we continue to see momentum building, and I expect further improvements in trends through the holiday season," CEO Frans Muller said in the statement.
However, he said the group's US performance was impacted by the ramp down of operations at the 32 Stop & Shop stores planned for closure and a recall of Boar's Head deli products, which had an impact of around $70 million in the quarter.
The Dutch company, which operates the Stop & Shop, Giant, Food Lion and Hannaford chains in the United States, said its quarterly revenue was €22 billion, while analysts were expecting 21.9 billion on average in a company-compiled consensus.
The owner of Albert Heijn and Delhaize chains in the Netherlands and Belgium 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.
It reiterated its outlook for the full-year 2024.
