Investing.com -- Ahold Delhaize NV (AS:AD) reported stronger-than-expected first-quarter sales on Wednesday, supported by solid results across its U.S. and European markets and the addition of Romanian retailer Profi to its portfolio.
The Dutch retailer’s shares popped nearly 4% in Amsterdam after the results.
In the U.S., which accounts for over half of the group’s revenue, comparable sales rose 3.1%, outpacing analyst expectations of 1.9%. Growth was driven by increased demand in online and pharmacy segments. European sales were also robust, rising 3.7% compared to the 2.4% forecast, helped by strong volume growth and the March acquisition of Profi.
"Ahold today reports a 3% Q1 EBIT beat, driven by volume improvements in the U.S. and Europe as the group continues to win share," Jefferies analysts said in a post-earnings note.
"We expect this market-share winning performance to have continued into Easter, with no major changes in U.S. consumer or inflationary behaviour," they added.
Net profit for the quarter came in at 554 million euros ($629.9 million), up from 513 million a year earlier and above the 540 million euro consensus listed on the company’s website. Underlying earnings per share were 62 cents, while the underlying operating margin reached 3.8%.
“Our investments in expanding our omnichannel infrastructure and enhancing our digital loyalty programs are yielding strong results in both regions, leading to a fourth consecutive quarter of double-digit growth in online grocery,” CEO Frans Muller said.
The company noted that its omnichannel strategy—combining physical stores, mobile apps, and websites—has significantly boosted consumer spending, with shoppers spending 1.5 to 3 times more in its most mature markets.
Ahold Delhaize reaffirmed its full-year outlook, including an expected underlying operating margin of around 4% and mid- to high-single-digit growth in underlying earnings per share at current exchange rates.