Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q3 2023 Earnings Presentation
28 slides from Koninklijke Ahold Delhaize's earnings presentation, Nov 8, 2023
Slide 1: Ahold Delhaize Q3 2023 Results
Q3 2023 Ahold Delhaize Results November 8, 2023 Ahold Delhaize – Q3 2023 Results 1
Slide 2: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Q3 2023 Results 2
Slide 3: 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 expect(ed)/(s)/(ation), growth, planned, implied, commitment, continu(es)/(e)/(ing), long-term, ambition
Slide 4: Ahold Delhaize raises free cash flow guidance for 2023
• Q3 comparable sales excluding gas increased by 3.1% for the Group, 0.9% in the U.S. and 7.0% in Europe. Increased market share in key markets reflects strong customer loyalty to our locally tailored customer value propositions. • Q3 Group net sales were €21.9 billion, up 2.9% at constant exchange
Slide 5: Business Highlights
Q3 2023 Business Highlights Frans Muller, President & CEO Ahold Delhaize – Q3 2023 Results 5
Slide 6: Our brands continue to be agile through a dynamic and complex market environment
Our brands continue to be agile through a dynamic and complex market environment Net Sales €21.9bn vs LY constant rates +2.9% Diluted Underlying EPS €0.58 vs LY actual rates (17.1%) Ahold Delhaize – Q3 2023 Results 6
Slide 7: Diligently staying the course to deliver short and long-term ambitions
Diligently staying the course to deliver short and long-term ambitions Agile & flexible Advancing the local brands adapt transition to a quickly to healthy & customers’ needs sustainable food system Transforming operating models to drive efficiency & profitability Ahold Delhaize – Q3 2023 Results 7
Slide 8: Ahold Delhaize announces expansion of operations in Romania
Ahold Delhaize announces expansion of operations in Romania Highlights • Profi operates 1,654 stores, complementing the Mega Image footprint • Enterprise Value (EV) of €1.3 billion corresponding to lease-adjusted EV of €1.8 billion (post IFRS 16) • Implied fully synergized acquisition multiple is 7x
Slide 9: Delhaize continues to execute their transformation plan
Delhaize continues to execute their transformation plan Highlights • First 12 stores have completed transition to affiliated stores with an additional 39 announced to be completed in the coming months • Expanded Little Lions campaign to 1,000 products, double the original offering • Announced a new
Slide 10: Refocusing online fulfillment capabilities to meet changing customer needs
Refocusing online fulfillment capabilities to meet changing customer needs Highlights • Orienting our online fulfillment capabilities towards same-day delivery models • Closed Jersey City and consolidated Giant Delivers with increased focus on pick from stores and third-party partners • Divesting Fr
Slide 11: Ahold Delhaize remains committed to elevating its Health and Sustainability strategy
Ahold Delhaize remains Food Lion committed to elevating its Health Food Lion’s received its 7th Superior Goal and Sustainability strategy Achievement & its 1st Exceptional Goal Achievement from EPA’s GreenChill Program for reducing refrigerant emissions across its footprint Albert The GIANT Company
Slide 12: Financial Highlights
Q3 2023 Financial Highlights Jolanda Poots-Bijl, CFO Ahold Delhaize – Q3 2023 Results 12
Slide 13: Third Quarter results 2023
Comparable Third Quarter Net sales Sales Growth €21.9bn excl. gas +3.1% results 2023 vs LY constant rates +2.9% U.S. +0.9% EU +7.0% Underlying Results Net Consumer Underlying Online Sales1 Underlying operating margin €2.8bn operating income 3.8% vs LY constant rates +6.4% €839m vs LY constant rates
Slide 14: Third Quarter results 2023 (IFRS-reported)
Online Sales Third Quarter Net sales €2.1bn €21.9bn vs LY actual rates results 2023 vs LY actual rates (2.1%) +2.3% IFRS-Reported Results Operating • €153m impairment for Operating income margin Fresh Direct €625m 2.9% • €61m restructuring costs for Accelerate initiatives vs LY actual rates vs LY ac
Slide 15: Comparable sales growth trends by region
Actuals excluding gas Ex weather/calendar/other Comparable sales growth trends by region Ex. Gas Q3 Group Comparable Sales Growth U.S. Q3 Europe excl. gas +0.9% +3.1% Q3 +7.0% 9.3% 8.8% 8.2% 8.1% 7.7% 7.6% 7.8% 7.4% 7.5% 7.0% 7.2% 6.1% 6.3% 6.2% 5.7% 5.6% 4.0% 3.6% 0.9% 1.0% Q3 2022 Q4 2022 Q1 2023
Slide 16: USA: Q3 2023
USA: Q3 2023 Food Lion Comparable 44 consecutive quarters sales growth ex gas of positive comparable Giant Food Net sales 0.9% sales growth €13.6bn vs LY Introduced a pharmacy- based rewards program vs LY constant rates (7.3) pts that allows customers to +0.5 % earn loyalty points from Hannaford Sto
Slide 17: Europe: Q3 2023
Europe: Q3 2023 Albert Comparable Launch of rebranded sales growth ex gas ecommerce website, Maxi Serbia 7.0% Net sales leveraging the strong Albert brand heritage €8.3bn €X bn vs LY Joined the ‘Better Prices’ initiative with the Serbian vs LY constant rates +0.4 pts government to help fight Additio
Slide 18: Albert Heijn's leadership in digital and innovation continues to drive growth
Albert Heijn’s leadership in digital and innovation continues to drive growth Highlights • Completed conversion of first 15 Jan Linder stores in the quarter • Launched the ‘AH Terra’ own-brand product line with around 200 plant-based products • AH Premium now has 880,000 customers • Offered customer
Slide 19: Bol gains significant market share during the quarter
Bol gains significant market share during the quarter Highlights • GMV was €1.3 billion, up 6.5% versus the prior year • Advertising revenues up 48.8% and logistic services up 22.3% versus prior year • Opened new logistics center to support largest products in the assortment • Rebranded to “bol” to
Slide 20: Q3 2023 free cash flow improvement influenced by last years SAP roll out
Q3 2023 free cash flow improvement influenced by last years SAP roll out FCF Q3 2023 vs Last Year (in €m) Favorable working capital largely due to SAP rollout in Q3 2022 Negatively impacted by Accelerate costs Ahold Delhaize – Q3 2023 Results 20
Slide 21: Investing in next phase of EU omnichannel growth
Investing in next phase of EU omnichannel growth Q4 Q3 Q4 2024 Mega Image Home Shopping Center Bol BFC2XL Albert Heijn Delhaize Delivery Home Shopping Center Center Ahold Delhaize – Q3 2023 Results 21
Slide 22: Outlook
Q3 2023 Outlook Frans Muller, President & CEO Ahold Delhaize – Q3 2023 Results 22
Slide 23: On track in executing our Leading Together Strategy
On track in executing our Leading Together Strategy Highly tailored Seamless and omnichannel convenient loyalty programs shopping experience Delivery options and online offerings that serve customer specific needs Ahold Delhaize – Q3 2023 Results 23
Slide 24: Retail Media organizations progress towards target of €1 billion in revenue
Retail Media organizations progress towards target of €1 billion in revenue Ahold Delhaize – Q3 2023 Results 24
Slide 25: 2023 outlook
Slightly below 2022 levels ≥€1 Underlying billion ≥4% diluted EPS Save for Our Customers Underlying Operating Margin ~€2.2 – €2.4 €1 billion billion Share Buyback2 ~€2.4 Free Cash Flow 40-50% billion payout; YOY growth in Capital dividend per share Expenditures Dividend payout ratio 1,2 1. Calculate
Slide 26: €1 billion Share Buyback and Strategy Day
€1 billion Share Buyback1 Strategy Day 1. Management remains committed to the share buyback and dividend program, but, given the uncertainty caused by the wider macro-economic consequences due to increased geopolitical unrest, will continue to monitor macro-economic developments. The program is also
Slide 27: Ahold Delhaize
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Slide 28: Thank you
Ahold 9 Delhaize Thank you FOODSALION $sToPasHopP. sm Gian, Giant Qe étos Galle albert DOL, GEIED tF Tempo (A Pecereutes LENAL2& Sreshdiect #| Retail Business Se Services Evropecn BUSINESS ADUSA suantss ED cipetycuam Proud companies of Ahold Delhaize
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