Netherlands-based Ahold Delhaize has posted a 1.8% increase in pro forma net sales, at constant exchange rates, to €16 billion, for the second quarter of its financial year.
Pro forma underlying operating income increased 11.4% to €626 million in the period, while pro forma underlying operating margin was 3.9%, compared to 3.6% in the same quarter last year.
‘On Track’
The company said that the integration of the business is ‘on track’, with net synergies of €117 delivered in the first half of the year.
“We are pleased to report a strong set of results,” sad Dick Boer, Ahold Delhaize chief executive. “Sales improved across the board and the group underlying operating margin increased by 30 basis points to 3.9% as merger synergy savings continued to track ahead of projections.
“A year after the merger between Ahold and Delhaize, the integration of the two companies is fully on track and delivering results as we continue to focus on strengthening our local brands through our Better Together strategy. We expect to achieve gross synergies of €750 million by 2019, of which €250 million will be reinvested in our brands.”
Regional Performance
In The Netherlands, sales rose 5.6% on a pro forma basis to €3.42 billion, and 4.8% on a half year basis to €6.72 billion. ‘Comparable sales grew by 4.9%, as a result of both strong online sales growth and growth at our supermarkets,’ the retailer said.
In Belgium, pro forma sales were up 0.2% in the quarter to €1.258 billion, however, on a half year basis, sales were marginally down by 0.4%, to €2.439 billion. ‘While the affiliated stores continued to perform well, the average basket size at company-owned stores decreased versus the same quarter last year,’ the company said.
Its Ahold USA business was flat (0.0%) in the quarter on a pro forma basis at constant currency rates, standing at €5.934 billion, while Delhaize America was up 1.2% to €3.989 billion.
““We look toward the second half of the year with confidence and expect our underlying operating margin for the full year 2017 to be broadly in line with the first half of the year, with €220 million net synergies for 2017,” commented Boer.
© 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.
