Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q2 2023 Earnings Presentation
27 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 9, 2023
Slide 1: Q2 2023 Ahold Delhaize Results
Q2 2023 Ahold Delhaize Results August 9, 2023 Ahold Delhaize – Q2 2023 Results 1
Slide 2: Cautionary notice
Cautionary notice This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as continue, expects, outlook, leading, transition, planned or other similar words or expressions are typic
Slide 3: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Q2 2023 Results 3
Slide 4: Ahold Delhaize delivers solid Q2 2023 results
• Through our brands' loyalty programs, which offer customers highly personalized discounts to fit their needs; the scale and leverage provided by our global portfolio and award winning own brand proposition; and our €1 billion Save for Our Customers program, we continue to help customers navigate t
Slide 5: Business Highlights
Q2 2023 Business Highlights Frans Muller, President & CEO Ahold Delhaize – Q2 2023 Results 5
Slide 6: Second Quarter results 2023
Comparable Second Quarter Net sales Sales Growth €22.1bn excl. gas +4.6% results 2023 vs LY constant rates +4.3% U.S. +3.6% EU +6.3% Underlying Results Net Consumer Underlying Online Sales1 Underlying operating margin €2.9bn operating income 4.1% vs LY constant rates +9.3% €904m In line vs LY consta
Slide 7: Q2 Free Cash Flow Bridge
Q2 Free Cash Flow Bridge FCF Q2 2023 vs Last Year (in €m) • Collected €377m from Belgian tax receivable Ahold Delhaize – Q2 2023 Results 7
Slide 8: Diligently staying the course to deliver short and long-term ambitions
Diligently staying the course to deliver short and long-term ambitions Agile & flexible Leading the local brands adapt transition to a quickly to healthy & customers’ needs sustainable food system Transforming operating models to drive efficiency & profitability Ahold Delhaize – Q2 2023 Results 8
Slide 9: Comparable sales growth trends by region
Actuals excluding gas Ex weather/calendar/other Comparable sales growth trends by region Ex. Gas Q2 Group Comparable Sales Growth U.S. Q2 Europe excl. gas +3.6% Q2 +4.6% +6.3% 9.3% 8.8% 8.2% 8.1% 7.8% 7.7% 7.6% 7.4% 7.5% 6.4% 6.2% 6.1% 6.3% 5.5% 5.7% 5.6% 4.0% 3.6% 1.8% 1.1% Q2 2022 Q3 2022 Q4 2022
Slide 10: The GIANT Company celebrates 100 years
The GIANT Company celebrates 100 years Highlights • Introduced Bonus Buys in 1979 paving the way for its award-winning loyalty program GIANT Choice Rewards • Honoring 100 years of giving by launching inaugural Make a Difference Challenge to give $500k to non-profits • Diverted 6 million pounds of fo
Slide 11: Food Lion's Omnichannel Remodeled Stores outperform expectations
Food Lion’s Omnichannel Remodeled Stores outperform expectations Highlights • Additional 47 Omnichannel Store remodels planned for August • 43 consecutive quarters of positive comparable sales growth • Launched new web and app presence with migration to PRISM platform Ahold Delhaize – Q2 2023 Result
Slide 12: Albert Heijn pushing boundaries in innovation and sustainability
Albert Heijn pushing boundaries in innovation and sustainability Highlights • Launched its own AI start-up – Gen AI Labs – and own AH GPT platform • Continued focus on organic with more than 75 new organic products added in the first half of the year • Reached agreement on CLAs for various business
Slide 13: Double-digit sales growth at bol.com
Double-digit sales growth at bol.com Highlights: • GMV was €1.4 billion, up 10.5% versus the prior year • bol.com advertising revenues up 73% versus prior year • Published 2022 Sustainability Report • Introduced ‘What’s buzzing in Belgium’ page tailored and visible to shoppers in Belgium Ahold Delha
Slide 14: USA: Q2 2023
USA: Q2 2023 ADUSA Comparable ADUSA Distribution sales growth ex gas adds Chester, New Giant Food Net sales 3.6% York, facility to their €13.6bn self-distribution vs LY network Over 500,000 own brand (2.8) pts redemptions through vs LY constant rates +2.7 % Flexible Rewards’ value Stop & Shop progra
Slide 15: Europe: Q2 2023
Europe: Q2 2023 Albert Comparable Expanded online sales growth ex gas services coverage to Maxi Serbia 6.3% Net sales two additional cities and now offers same €8.5bn €X bn vs LY day delivery Opened first home shop center - the first vs LY constant rates +4.5 pts warehouse for online +7.0% +9.2 % Me
Slide 16: Second Quarter results 2023 (IFRS-reported)
Online Sales Second Quarter Net sales €2.2bn €22.1bn vs LY actual rates results 2023 vs LY actual rates +2.9% +6.4% IFRS-Reported Results • €108m impairment for store equipment in Operating Belgium Operating income margin • 3.3% €40m impairment for €724m Jersey City warehouse vs LY actual rates vs L
Slide 17: Our omnichannel customer value proposition is at the core of how our brands grow
Our omnichannel customer value proposition is at the core of how our brands grow Scaled tech and Deeper digital Digital & capabilities Great Value relationships Fresh in-store & Healthy experience Agile culture Convenient Supply chain, Local Vibrant, easy operations & Operational Customer & Trusted
Slide 18: Creating a more agile organization through transformation projects and Accelerate initiatives
Creating a more agile organization through transformation projects and Accelerate initiatives e-commerce Joint CSE profitability strategy Transformation of Simplify DLL operating organizational model structures Ahold Delhaize – Q2 2023 Results 18
Slide 19: Delhaize announces first expected conversion dates of company-owned stores
Delhaize announces first expected conversion dates of company- owned stores Highlights: • Announced first 15 integrated supermarkets will be affiliated starting in October • With proposed changes, all Delhaize stores will be aligned under one operating model • Continue to develop its position in the
Slide 20: PDL supports ADUSA brands to execute their omnichannel strategies
PDL supports ADUSA brands to execute their omnichannel strategies Highlights • ADUSA e-commerce penetration at 8.1% for the first half of 2023 • Rolled out Native Mobile Apps at Stop & Shop & Food Lion • Will start in Q3 the migration of Food Lion ecommerce to PRISM platform Ahold Delhaize – Q2 2023
Slide 21: Ahold Delhaize achieves 'AAA' MSCI rating
Ahold Delhaize achieves ‘AAA’ MSCI rating and remains focused on sustainability projects Food Lion Food Lion Feeds donated more than 40 million meals in Q2 and a total of 67 Albert Heijn million in the first half of 2023 through hunger relief efforts. Albert Heijn has succeeded in its second city to
Slide 22: Hannaford leads its market with Fresh & Convenient strategy
Hannaford leads its market with Fresh & Convenient strategy Highlights • Gained market share in 27 out of last 29 quarters • Completed Ratio Institute’s Sustainable Food Retail Certification • Launched the Flybuy platform to support the Hannaford To Go pickup service Ahold Delhaize – Q2 2023 Results
Slide 23: bol.com achieves B Corp Certification
bol.com achieves B Corp Certification What is it? Environment Community Certification to corporations that meet • 1st e-commerce company in Benelux ‘Bollebozen’ program is committed to high, verified standards in terms of social & certified to Climate Neutral Standard equal opportunities for childre
Slide 24: Our brands continue to deliver solid results through dynamic market environment
Our brands continue to deliver solid results through dynamic market environment Inflation has passed its peak Rise in social tensions Volatile weather patterns Ahold Delhaize – Q2 2023 Results 24
Slide 25: 2023 outlook
2023 Around 2022 ≥€1 levels billion Underlying ≥4% diluted EPS Save for Our Customers Underlying Operating Margin ~€2.0 - €2.2 €1 billion Share Buyback2 ~€2.5 billion 40-50% Free Cash Flow billion payout; YOY growth in Capital dividend per share Expenditures Dividend payout ratio 1,2 1. Calculated a
Slide 26: Ahold Delhaize
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Slide 27: Thank you
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