Ahold Delhaize USA delivers strong Q1 results

Ahold Delhaize USA brand Food Lion reported its 42nd consecutive quarter of positive sales growth, and U.S. net sales were $14.7 billion, an increase of 5.7% at constant exchange rates and up 10.5% at actual exchange rates. 

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

U.S. comparable sales excluding gasoline increased by 6.2%. Online sales were also up 11.9% in constant currency driven primarily by over 20% growth at Food Lion and The Giant Company, which both opened four new click-and-collect locations during the quarter.

Underlying operating margin in the U.S. was 4.8%, up 0.4 percentage points at constant exchange rates from the prior year period, building on the strong performance in the prior quarter and higher on-shelf availability resulting from improving supply chains. In Q1, U.S. IFRS-reported operating margin was 4.7%.

“The U.S. brands continue to deliver consistent and strong performance. In the quarter, comparable sales grew by 8.1%, excluding weather and calendar shifts,” said Ahold President and CEO Frans Muller. “We also delivered a strong underlying operating profit, driven by better shelf availability, as supply chains are much improved compared to a year ago. It is clear that customers are finding great value through our brands’ various omnichannel propositions. During the quarter, the loyalty programs at Food Lion, Stop & Shop, and Giant Food were named among ‘America’s Best Loyalty Programs 2023’ by Newsweek.”

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Ahold Delhaize reiterated its 2023 outlook, adding that its underlying operating margin is projected to be around 4%.