Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q1 2019 Earnings Presentation
15 slides from Koninklijke Ahold Delhaize's earnings presentation, May 8, 2019
Slide 1: Ahold Delhaize Q1 2019 results
Ahold Delhaize Q1 2019 results May 8, 2019
Slide 2: Highlights
Highlights Frans Muller President & CEO
Slide 3: A solid quarter with growth in sales and net income
A solid quarter with growth in sales and net income • Net sales of €15.9 billion, up 1.5%, at constant exchange rates, impacted by Easter • Net consumer online sales up 25.0% at constant exchange rates • Underlying operating margin of 4.4%, stable compared to same quarter last year • Net income of €
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance
Group performance € in million Quarter 1 Change Change 2019 2018* actual rates constant rates Net sales 15,878 14,933 6.3% 1.5% Underlying EBITDA 1,356 1,296 4.6% (0.4%) Underlying EBITDA margin 8.5% 8.7% Underlying operating income 695 651 6.8% 1.4% Underlying operating margin 4.4% 4.4% Operating i
Slide 6: Performance by segment
Performance by segment Good performance in the U.S., solid performance in the Netherlands € in million USA The Netherlands Belgium CSE Change* 2019 Change* 2019 Change* 2019 Constant rates 2019 Change* Constant rates Net sales 9,666 1.1% 3,528 3.5% 1,217 (2.2)% 1,466 2.4% Operating income 461 7.9% 1
Slide 7: Synergy savings
Synergy savings Target of €500 million net synergies expected to be reached in Q2 2019 € in million Quarter 1 2019 2018 The United States 81 66 Europe 30 25 Global Support Office 11 9 Total 122 100 Cumulative net synergies 2016 – 2019 € in million 488* 432 268 22 2016 2017 2018 Q1 2019 7 *Annualized
Slide 8: Free cash flow
Free cash flow Negative FCF due to timing of Easter, higher CAPEX and income taxes paid € in million Quarter 1 2019 2018* Operating cash flow 1,337 1,279 Changes in working capital (394) (199) Income tax paid – net (226) (34) Cash from cont. operations 717 1,046 Capital expenditure (452) (303) Dives
Slide 9: Outlook 2019
Outlook 2019 • We confirm our target for 2019 of realizing €750 million gross synergies, resulting in €500 million net synergies from the integration of the two companies • We expect to save €540 million in 2019 as part of our €1.8 billion Save for Our Customers program for 2019-2021 • Related to st
Slide 10: Highlights
Highlights Frans Muller President & CEO
Slide 11: Stop & Shop update
Stop & Shop update • New labor contract ratified by UFCW members • Total labor cost increases in line with inflation • Sales miss of $200 million during strike, with $90 to $110 million loss of operating profit • After strike, customers returning to our stores and sales levels continue to ramp up •
Slide 12: Highlights United States
Highlights United States • Food Lion invests $158 million to remodel 92 stores in South Carolina as well as $40 million to remodel 23 stores in Virginia to its “Easy, Fresh and Affordable” program in 2019 • Giant/Martins launched “Giant Direct”, its new online brand and opened an eCommerce hub in La
Slide 13: Highlights Europe
Highlights Europe • Albert Heijn launched Prijsfavorieten (“Price Favorites”), 1,000+ fresh and non-perishable popular high quality products at everyday low prices and will further extend this range in 2019 • Ah.nl plans to open a fifth fulfillment center in Q3 2019 and is expanding the number of di
Slide 14: Wrap-up
Wrap-up A solid quarter with growth in sales, UOP and net income at constant rates • Net sales of €15.9 billion, up 1.5%, at constant exchange rates, impacted by Easter • Net consumer online sales up 25.0% at constant exchange rates • Underlying operating margin of 4.4%, stable compared to same quar
Slide 15: Cautionary notice
Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as outlook, target, expect, plans to, to be, guidance or other similar words or expressions are typically used to identify
Koninklijke Ahold Delhaize — Q1 2019 Earnings Presentation on 6ix