Royal Ahold, the Dutch grocery chain in the process of merging with Belgium’s Delhaize Group, reported second-quarter profit that topped analysts’ estimates as the company revamped U.S. stores and online sales grew in the Netherlands.
Underlying operating income rose 15 per cent to €331 million ($369 million), the Zaandam, Netherlands-based company said in a statement Thursday. On average, analysts surveyed by Bloomberg estimated earnings of €317 million.
The merger of Ahold and Delhaize, announced in June, will create a business with more than 4 per cent of the U.S. grocery market, about 6,500 stores and annual sales exceeding €54 billion. The deal, which remains subject to antitrust scrutiny, was hastened by increased competition in the U.S. from retailers including Wal-Mart Stores.
Underlying operating income in the U.S. increased by 31 per cent, Ahold said. The company is updating its offering to customers there, including offering a better produce selection.
In the Netherlands, identical sales grew by 3.4 per cent, topping analysts’ estimates for a 2 per cent advance. The company posted 30 percent sales growth at its bol.com online store.
Bloomberg News, edited by ESM
