Ahold Delhaize’s Boer: ‘Solid performance’

Ahold Delhaize CEO Dick Boer described the company’s third-quarter earnings — its first since the company’s merger in July — as a “solid performance,” despite the deflationary environment.

“Despite challenging conditions in certain markets, Ahold Delhaize has delivered growth in sales and in underlying operating income on a pro forma basis which reflects the strength and resilience of our great local brands, as well as our continued focus on delivering cost efficiencies across our businesses while driving top-line growth,” Boer said in a statement.

Ahold Delhaize posted net sales of $14.8 billion, an increase of 64.2 percent, in the third quarter of 2016, when its net income grew by 25 percent to $252 million to generate a net sales gain of 2.6 percent to $15.5 billion. Earnings were below analysts’ estimates.

Boer said Ahold Delaize, one of the world’s largest retailers based in Zaandam, the Netherlands, faced challenges in the quarter in the United States.

“The trading environment in the U.S. remained challenging with ongoing price deflation and competitive pressures in the market,” he said. “The program to improve the customer proposition at Ahold USA, together with the strengthening of the Stop & Shop store network in the New York metro area resulted in volume growth. At Delhaize America, both Food Lion and Hannaford continued to experience positive comparable sales and volume growth.”