Wednesday 20 January 2021

Ahold-Delhaize supermarket merger begins to pay off

Photo: Ahold

The Dutch-Belgian supermarket giant Ahold-Delhaize reported on Wednesday that both sales and earnings improved considerably in its supermarkets and e-commerce operations in the second-half of 2017. The company said the benefits from the July 2016 merger which formed the company are now beginning to pay off.

Ahold-Delhaize books more than half of group sales in the US where it operates the Stop&Shop, Giant and Food Lion supermarket chains, among others.

The group reported second-quarter net profit rose 68% on the back of strong sales growth in the Netherlands and improving results at its US stores. Net earnings came out at €355m on turnover 3.4% higher at €16bn.

‘We look toward the second half of the year with confidence and expect our underlying operating margin for the full year 2017 to be broadly in line with the first half of the year,’ CEO Dick Boer said in a statement.

The merger of Ahold and Delhaize will result in €750m in gross savings in 2019, the company said, with €220m realised this year. The company will reinvest €250m of the total savings in its own brands.

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