Ahold Delhaize delivers solid Q1 results, driven by its strong U.S. banner performances

Ahold Delhaize’s U.S. banners propelled the Dutch retailer to report strong earnings for the first quarter.

Ahold Delhaize, the parent of grocers Food Lion and The Giant Co., said U.S. same-store sales (excluding gas) rose by 6.2% in the company's first fiscal quarter of 2023.

U.S. highlights for the retailer include net sales up nearly $14.8 billion, or 5.7% at constant exchange rates, and up 10.5% at actual exchange rates, Ahold Delhaize reported on Wednesday.

Ahold Delhaize USA banner Food Lion achieved another milestone for the grocer as it led brand performance, delivering its 42nd consecutive quarter of positive sales growth.

Ahold Delhaize reported that online sales rose 11.9% in constant currency, driven primarily by more than 20% growth at Food Lion and The Giant Co., which both opened four new click-and-collect locations during the quarter.

“The U.S. brands continue to deliver consistent and strong performance,” Ahold Delhaize President and CEO Frans Muller said in a statement. “For the first quarter, comparable sales grew by 8.1%, excluding weather and calendar shifts. We also delivered a strong underlying operating profit, driven by better shelf availability, as supply chains are much improved compared to a year ago.”

As for the retailer’s outlook, Muller said that in the U.S., “our brands are well positioned as inflation levels start to moderate.”

Looking ahead, Ahold Delhaize reiterated its 2023 outlook, noting that its underlying operating margin is expected to be around 4%.

Ahold Delhaize USA banner stores include Stop & Shop, Hannaford, Martin’s, Giant Food and Food Lion.