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ZAANDAM, the Netherlands—Ahold Delhaize posted a slight increase in fourth-quarter revenue, with net sales reaching €23.3 billion ($24.12 billion), up 0.6% at constant exchange rates. The company’s full-year results met expectations, with total net sales of €89.4 billion ($92.55).
Q4 Performance Highlights
Comparable sales, excluding gasoline, grew 1.4%, with a 1.4% increase in the U.S. and 1.2% in Europe. However, excluding the impact of divestments, store closures, and the cessation of tobacco sales in the Netherlands, net sales growth would have been 2.1 percentage points higher.
Ahold Delhaize’s online business showed resilience, with Q4 online sales up 5.8% at constant exchange rates. Growth was driven by strong performance in online grocery, excluding FreshDirect, which the company divested. The underlying operating margin for the quarter came in at 4.1%, reflecting a 0.2 percentage point decline, as strong European performance was offset by price investments in the U.S.
“Despite economic volatility, our performance underscores our ability to create value for customers while adapting to market challenges,” said Frans Muller, President and CEO of Ahold Delhaize. “Looking ahead, we see strong momentum to accelerate growth and earnings in 2025.”
Full-Year Results & Dividend Increase
For 2024, Ahold Delhaize delivered an underlying operating margin of 4.0% and a diluted underlying EPS of €2.54, in line with expectations. Free cash flow reached €2.5 billion, exceeding the company’s €2.3 billion guidance.
The company announced a proposed cash dividend of €1.17 per share for 2024, marking a 6.4% increase from the previous year. Additionally, Ahold Delhaize reaffirmed its commitment to returning value to shareholders through its €1 billion annual share buyback program.
Outlook for 2025: Investing in Growth
Ahold Delhaize’s 2025 strategy, branded as Growing Together, will focus on enhancing omnichannel capabilities, increasing customer loyalty, and expanding market reach. The company plans to ramp up price investments, accelerate store openings and remodels, and scale technology-driven retail initiatives.
“We are committed to investing decisively in areas that drive long-term growth and efficiency,” Muller stated. “This includes expanding our distribution and technology infrastructure to support both topline growth and margin improvements.”
For 2025, Ahold Delhaize expects an underlying operating margin of around 4%, mid- to high-single-digit underlying EPS growth, and free cash flow of at least €2.2 billion. Capital expenditures are projected at approximately €2.7 billion, reflecting the company’s focus on expanding its asset base.
Regional Performance: U.S. and Europe
In the U.S., Q4 saw positive volume trends, bolstered by strong holiday sales and price investments. Food Lion led performance with its 49th consecutive quarter of comparable store growth. Online sales in the region achieved double-digit growth for the third consecutive quarter, excluding FreshDirect, and the company’s partnership with DoorDash saw a 20% uptick in order volume.
In Europe, Albert Heijn reached a record 37.7% market share, while Delhaize in Belgium regained pre-restructuring market share levels. The company’s Save for Our Customers initiative delivered €1.35 billion in cost savings, reinvested to enhance customer value. Online marketplace Bol also saw strong momentum, with Q4 sales up 11% and record app engagement.
Sustainability & Operational Efficiency
Ahold Delhaize reported a 36% reduction in greenhouse gas emissions from its 2018 baseline and a 35% decrease in food waste relative to 2016. Looking ahead, the company will continue prioritizing sustainability initiatives, including reducing plastic packaging and promoting healthier food choices.
“With our strong financial foundation and disciplined investment strategy, we are well-positioned to drive sustainable growth in 2025 and beyond,” Muller concluded.
Investors responded positively to the company’s outlook, with Ahold Delhaize shares edging higher in early trading following the earnings announcement.
