Ahold Delhaize Ends 2021 With Accelerating Q4 Sales

Ahold Delhaize reported Feb. 16 fourth-quarter 2021 earnings that topped revenue expectations and beat analysts' forecasts.

The Dutch retailer said fourth-quarter group U.S. net sales were $13,751.48 billion (12,099 euros), up 1.5% at constant exchange rates compared to fourth-quarter 2020, which contained a 53rd week. U.S. net sales increased by 1.5% at constant exchange rates (5.9% at actual exchange rates). Excluding last year's 53rd week, fourth-quarter U.S. net sales grew by 9.2% at constant exchange rates. U.S. comparable sales excluding gasoline increased 4.8%.

The company said unfavorable weather negatively impacted fourth-quarter U.S. comparable sales by about 0.2 percentage points. On a two-year comparable sales stack basis, growth was 16%, accelerating from the 15.3% growth in the third quarter.

Ahold Delhaize banner Food Lion continued to lead brand performance, which has now delivered 37 consecutive quarters of positive sales growth. 

In the fourth quarter, U.S. online sales were up 30.5%, driven by the continued expansion of click-and-collect facilities and the FreshDirect acquisition. Excluding the FreshDirect acquisition, the company said U.S. online sales grew 7.5%, building on top of the significant 128.5% growth in the same quarter last year. 

"We ended 2021 on a strong note, with positive group Q4 comparable sales momentum and stable group margins, positioning us for a strong start to the next phase of our 'Leading Together' strategy announced last November,” said Frans Muller, president and CEO of Ahold Delhaize, in a statement. “Looking back on the past year, I am most proud of how associates brought our values to life in the way they responded to ongoing developments associated with COVID-19 and natural disasters throughout our brands' markets, including major floods in Belgium, tornadoes in the Czech Republic, fires in Greece and Hurricane Ida in the U.S. Through it all, associates rose to the challenge to care for customers and communities. As a result, we enter 2022 with deeper relationships and trust across our brands' markets and stronger market shares to build upon.”

Muller also highlighted the company’s investment in its U.S. omnichannel platform and signaled out Giant Food and its online marketplace solution Ship2me.

"To advance its omnichannel offerings in the U.S., Giant Food launched online marketplace solution Ship2me, initially offering around 40,000 additional general merchandise and food items,” Muller said in a statement. “Our U.S. brands also added new click-and-collect locations in Q4, for a total addition of 270 in 2021.

Muller also reiterated the company’s omnichannel investments by saying "as we enter 2022, we will accelerate our omnichannel investments to capture the incremental growth opportunities we see over the horizon, enabled by our platform. Improving omnichannel productivity also remains a very high priority as part of the commitment we announced at our November Investor Day to reach fully allocated profitability in group e-commerce operations by 2025. It comes as the global COVID-19 pandemic continues to highlight the importance of strong omnichannel food retail operations that offer consumers a variety of shopping options, including robust online offerings.”

When it comes to the outlook of the future, Muller mentioned the strategies in place for U.S. digital capabilities.

"In this respect, we are proud of The Giant Co.'s new e-commerce fulfillment center that opened in the Philadelphia market in Q4,” Muller said. “It is supporting our growth and productivity ambitions for 2022 and beyond. We continue to invest across our entire distribution network and build new digital capabilities.”

While supply chain disruptions, inflation and rising costs pose challenges for the industry in 2022, Ahold Delhaize's Group said in a statement it “believes that the company's brands continue to offer consumers a strong shopping proposition and are well-positioned to maintain profitability in the current inflationary environment.” Ahold Delhaize USA banner stores include Stop & Shop, Hannaford, Martin’s, Giant Food and Food Lion.