Ahold Delhaize posts soft Q4 numbers in U.S.

Ahold Delhaize wants to save the customer money, so much so it is a centerpiece in the retailer’s strategy. 

For the fourth quarter, the grocer’s Save for Our Customers program created over 1.25 billion Euros in cost savings, which is 29% more than what was generated last year. 

However, the Q4 financial results were mixed for Ahold Delhaize, which reported overall year over year increases in net sales (1.9%), comparable sales excluding gasoline (1.8%), online sales (3.6%), and net consumer online sales (2.6%). The news was a little different in the U.S., where stores recorded year-over-year declines in all four areas (down 1.5% in net sales and 1.9% in online sales and net consumer online sales). Comparable sales declined by 1% vs. Q4 2022. 

“[It was] in line with our expectations as inflation [in the U.S.] moderated further and Supplemental Nutrition Assistance Program (SNAP) headwinds remained,” said Frans Muller, president and CEO of Ahold Delhaize. “Excluding one-offs, the U.S. underlying operating margin was consistent with the prior year, highlighting our strong focus on managing costs to match top-line deflation trends.

“In addition, the divestment of FreshDirect was finalized in the quarter, which contributed a modest uplift to margin. For the coming quarters, this margin upside will help fund investments into our U.S. brands' store portfolio and customer value propositions.”

Related:DoorDash coming to all Ahold Delhaize USA banners

The divestment of Fresh Direct will reduce the amount of 2024 reported net sales and online sales in the U.S. by $600 million. 

For fiscal year 2023 overall Ahold Delhaize reported year-over-year increases in net sales (3.8%), comparable sales growth excluding gasoline (3.9%), online sales (6.1%), and net consumer online sales (5.9%). In the U.S., net sales were up 1.8% compared to FY 2022, while comparable sales growth excluding gasoline sales rose 2.3%, and online sales and net consumer online sales both increased 5.1%.