Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Ahold Delhaize — Q2 2019 Earnings Presentation
16 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 7, 2019
Slide 1: Ahold Delhaize Q2 2019 results
Ahold Delhaize Q2 2019 results August 7, 2019
Slide 2: Highlights
Highlights Frans Muller President & CEO 2
Slide 3: Second quarter results impacted by Stop & Shop strike
Second quarter results impacted by Stop & Shop strike • Net sales of €16.3 billion, up 1.5% at constant exchange rates, impacted by the strike • Net consumer online sales up 29.2% at constant exchange rates • Underlying operating margin of 3.6%, including strike impact • U.S. comparable sales growth
Slide 4: Financial Results
Financial Results Jeff Carr CFO
Slide 5: Group performance
Group performance € in million Quarter 2 Half year % Change % Change 2019 2018 % Change constant rates HY 2019 HY 2018 % Change constant rates Net sales 16,315 15,531 5.0% 1.5% 32,193 30,464 5.7% 1.5% Underlying EBITDA 1,267 1,320 (4.0%) (7.2%) 2,623 2,616 0.3% (3.8%) Underlying EBITDA 7.8% 8.5% 8.1
Slide 6: Performance by segment
Performance by segment € in million Quarter 2 USA The Netherlands Belgium CSE 2019 Change 2019 Change 2019 Change 2019 Change Constant rates Constant rates Net sales 9,780 0.2% 3,683 4.2% 1,286 (0.1%) 1,567 5.1% Comparable sales 0.2% 0.3 pts 3.8% 0.9 pts (0.2%) (1.6) pts 3.5% 3 pts growth excl. gas
Slide 7: Synergy savings
Synergy savings € in million Quarter 2 Half year 2019 2018 2019 2018 The United States 83 67 164 133 Europe 34 24 64 49 Global Support Office 12 8 23 17 Total 128 99 250 199 Cumulative net synergies € in million Quarter 2 € in million 512* 432 2019 2018 Final costs 268 Integration costs 14 26 378 U.
Slide 8: Free cash flow
Free cash flow € in million Quarter 2 Half year 2019 2018 restated 2019 2018 restated Operating cash flow 1,284 1,275 2,619 2,554 Changes in working capital 284 164 (109) (35) Income tax paid – net (92) (60) (317) (94) Cash from cont. operations 1,476 1,379 2,193 2,425 Capital expenditure (569) (364
Slide 9: Interim dividend
Interim dividend • Introduction of interim dividend of €0.30, based on 40% of first half 2019 underlying income per share from continuing operations Timeline: • August 9: Ex-dividend date • August 12: Record date • August 29: Payment date 9
Slide 10: Outlook
Outlook • Underlying operating margin for the group of 2019 to be slightly lower than 2018 • Underlying earnings per share in 2019 growth in the low single digits compared to 2018 • Deliver €540 million in 2019 as part of our €1.8 billion Save for Our Customers program for 2019 – 2021 • Group free c
Slide 11: Highlights
Highlights Frans Muller President & CEO 11
Slide 12: Stop & Shop update
Stop & Shop update • Direct impact strike: $224 million sales, ~$100 million operating income • Subsequent recovery: $121 million sales, associated operating loss largely mitigated in Q2 • Sales performance improving, no significant impact from the strike in second half 2019 • Encouraging start Re-i
Slide 13: Highlights United States
Highlights United States • Food Lion 27th consecutive quarter positive comparable sales growth, ongoing momentum from Easy, Fresh and Affordable – 115 stores to be remodeled in second half 2019 • Fresh Kitchen facility to be opened in Rhode Island to develop distinctive new meal solutions and culina
Slide 14: Highlights Europe
Highlights Europe • Albert Heijn converted its 50th store with new fresh and digital concept – Roll out on track with 120 completed by year end • In Belgium, proximity store concepts Proxy and Shop & Go performing well – More openings planned for second half 2019 • Bol.com third party sales growing
Slide 15: Wrap-up
Wrap-up • Second quarter impacted by Stop & Shop strike • Integration fully completed, net synergies achieved of €512 million • 2019 outlook reiterated • Interim dividend of €0.30 announced, payment date August 29 15
Slide 16: 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 (2019) outlook, to be, will, (well) on track, to expand, by year end, planned or other similar words or