Ahold Delhaize Ends Fiscal Year With A Flat Q4
Fourth quarter net sales at Ahold Delhaize’s U.S. division were down slightly, but the grocer reported a modest gain in comparable store sales when excluding the impact of gas sales.
Total sales in the U.S. division were €13.9 billion (US$14.4 billion), down 0.6% compared to the comparable quarter the previous year. Operating income in the quarter was up 30.1% to €568 million (US$590 million). Comparable store sales in the U.S. were up 1.4%.
"In the U.S., we saw volumes return to positive territory, capped off by strong holiday sales,” said Frans Muller, president and CEO of Ahold Delhaize. “Including price investments, the U.S. segment delivered an underlying operating margin in line with the third quarter.”
Muller said online sales growth was a highlight for the quarter, reaching double-digit levels for the third quarter in a row, excluding the impact of FreshDirect.
“Customers are responding positively to our partnership with DoorDash, with orders accelerating a further 20% compared to Q3,” he said.
Muller noted that Food Lion and Hannaford continue to lead U.S. brands’ performance, with the grocers, respectively, achieving their 49th and 14th consecutive quarters of comparable store sales growth. Additionally, The Giant Company opened a new store in Philadelphia, with two more in the works for 2025, as part of plans to accelerate new store openings in the coming year.
In the fourth quarter, online sales were down 0.9% in constant currency, negatively impacted by 11.8% due to the divestment of FreshDirect. This was partially offset by double-digit online growth at Food Lion. Underlying operating margin in the U.S. was 4.2%, down 1% due to price investments at Stop & Shop, the net unfavorable impact from change in sales mix, wage inflation, and lower non-recurring items.
Company-wide, Ahold Delhaize net sales were €23.3 billion (US$24.2 billion), an increase of 0.6% at constant exchange rates and up 1.0% at actual exchange rates. Net sales were driven by comparable sales growth excluding gasoline of 1.4% and store openings partially offset by the closure of Stop & Shop stores, the divestment of FreshDirect, and lower gasoline sales.
