Ahold Delhaize has reported a 4.5% increase in sales, at constant currency rates, in its European operations in the first half of its financial year.
Net sales for the first half of the year came in at €17.25 billion in the group's Europe business, which includes operations in the Netherlands, Belgium, Serbia, Greece, Czechia and Romania.
Comparable sales growth in the division, excluding gasoline, stood at 2.6%, while online sales rose by 9.1% in the period. Operating income in its Europe business rose by 17.4% during the half year.
'Doubling Down'
“In Europe, as inflation rates moderate compared to a year ago, our brands are doubling down on their winning strategies to drive market share growth, for example, by offering compelling promotions to drive customer traffic and expanding the assortment of 'Price favorites',"commented Frans Muller, Ahold Delhaize chief executive.
Muller noted that the ending of tobacco sales in Dutch stores had a negative impact of 2.1 percentage points on its Albert Heijn business in the Netherlands, while in Belgium, the company's transition to a franchise-led model at Delhaize is on-track and is expected to be completed by the fourth quarter of this year.
"In addition, the higher sales leverage and change in operating model, along with cycling the impact from prior year strikes, have contributed to the recovery of underlying operating margin in Europe, which reached 3.7%," Muller added.
Group Sales
At group level, net sales totalled €44.1 billion in the first half, an increase of 1.0% at constant exchange rates and up 0.8% at actual exchange rates.
Positive impacts on group sales included the conversion of Jan Linders stores, while negatives included the divestment of Fresh Direct and lower gasoline sales, the company noted.
"We have a strong foundation, and we are ready to set the pace for change in our industry," said Muller. "We believe we have a very compelling set of ambitions, which, on delivery, will yield strong growth for our company and our stakeholders."
