Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q4 2024 Earnings Presentation
39 slides from Koninklijke Ahold Delhaize's earnings presentation, Feb 12, 2025
Slide 1: Q4 & FY 2024 results
Q4 & FY 2024 results February 12, 2025
Slide 2: Cautionary notice
cautionary notice This communication includes forward-looking statements. All statements other than competitive labor markets, changes in labor conditions and labor disruptions; statements of historical facts may be forward-looking statements. Forward-looking increases in costs associated with the C
Slide 3: Welcome
Q4 & FY 2024 welcome 3 Ahold Delhaize – Q4/FY 2024
Slide 4: Speakers
speakers Frans Jolanda JP Muller Poots-Bijl O’Meara President & Chief Executive Officer Chief Financial Officer SVP Investor Relations 4 Ahold Delhaize – Q4/FY 2024
Slide 5: Ahold Delhaize reports Q4 2024 financial results, introduces outlook for 2025
• Through increased price investments, new own-brand assortments and strong operational execution, our brands created value Ahold Delhaize for customers in disruptive times. To invest in these activities, our teams delivered over €1.35 billion in cost savings. This commitment to strong and consisten
Slide 6: Quarterly performance
Q4 & FY 2024 quarterly performance Frans Muller 6 Ahold Delhaize – Q4/FY 2024
Slide 7: Commitment: staying true to our values
commitment: staying true to our values to deliver every day thriving people 7 Ahold Delhaize – Q4/FY 2024
Slide 8: Consistency: delivering on our promises
consistency: delivering on our promises relentless focus on the advancement of our own-brand customer strategies simplification and modernization laser focus on cost control and of our organization to sustain cash flow delivery growth investments 8 Ahold Delhaize – Q4/FY 2024
Slide 9: Performance review: key highlights
performance review: key highlights key financial targets 2024 most recent guidance results in 2024 group underlying operating margin ≥ 4.0% 4.0% diluted underlying EPS growth around prior year levels +0.1% at actual rates capital expenditures, net around €2.2 billion 2.0 billion free cash flow €2.3
Slide 10: Clarity: our Growing Together strategy
clarity: our Growing Together strategy our our purpose growth inspiring everyone to eat and live better, for a model healthier future for people and planet our vision together, we are your profitable growth… trusted local food retailer industry leading margins strong free cash flow growing sharehold
Slide 11: Enhancing our CVP through deeper personalization & integrated solutions
enhancing our CVP through deeper personalization & integrated solutions • Over 12 billion personalized offers in 2024 across the U.S. brands • New partnership in the U.S. with Inmar Intelligence to further improve personalization • Alfa Beta transitioned to our modular e-commerce platform, the final
Slide 12: Strengthening own-brand strategy
strengthening own-brand strategy • Nearly 39% own-brand food penetration • At Albert Heijn, more than 150 own-brand products and product lines were award- winning in consumer taste and quality • CSE brands harmonized an additional 500 products • Own brand sales in the U.S. outpace the rest of the st
Slide 13: The GIANT Company kicks off next round of growth
The GIANT Company kicks off next round of growth • Opened a new store in Philadelphia in December, with two new additional stores in Pennsylvania planned for 2025 • 95% of stores have been remodeled to reflect the current brand décor packages 13 Ahold Delhaize – Q4/FY 2024
Slide 14: Completed challenging projects to elevate long-term performance
completed challenging projects to elevate long- term performance • Last Delhaize store converted to the affiliate model • All underperforming Stop & Shop stores are now closed 14 Ahold Delhaize – Q4/FY 2024
Slide 15: Exceeded Save for Our Customers goal with 1,354 million for 2024
exceeded Save for Our Customers goal with 1,354 million for 2024 guidance of €5 billion of additional saving from 2025-2028 Save for Our Customers helps fund growth investments, absorbs cost pressures, and improves our €1,354 customer value proposition €1,259 €104 €259 €967 €979 €129 €5 billion cumu
Slide 16: Healthy communities & planet
healthy communities & planet Albert Heijn close-up • Healthy own-brand sales increased close to 200 basis points compared to 2023 1 • More than 250 Albert Heijn Terra products • Scope 1 & 2 emissions reduced by 90% compared to 2018 • Received B-corp certification 1. Excluding impact from Nutri-Score
Slide 17: Financial highlights
Q4 & FY 2024 financial highlights Jolanda Poots-Bijl 17 Ahold Delhaize – Q4/FY 2024
Slide 18: Fourth quarter results 2024
comparable sales growth excl. gas +1.4% net sales U.S. +1.4%, EU +1.2% online €23.3bn sales2 fourth vs LY constant rates +0.6% €2.6bn underlying vs LY constant rates quarter operating income1 +5.8% results 2024 €958m vs LY constant rates underlying results (4.6)% underlying operating margin1 underly
Slide 19: Full year results 2024
comparable sales growth excl. gas +1.2% net sales U.S. +0.8%, EU +2.0% online €89.4bn sales2 vs LY constant rates +0.9% €9.2bn underlying vs LY constant rates full year operating income1 +3.5% results 2024 €3.6bn vs LY constant rates underlying results +0.2% underlying operating margin1 underlying i
Slide 20: Fourth quarter results 2024 (IFRS-reported)
diluted EPS €0.41 vs LY actual rates (12.7%) net sales online €23.3bn sales1 fourth vs LY actual rates +1.0% €2.6bn quarter operating income vs LY actual rates +6.1% results 2024 €607m vs LY actual rates IFRS-reported results (10.0)% operating €351m lower than underlying margin results, largely due
Slide 21: Full year results 2024 (IFRS-reported)
diluted EPS €1.89 vs LY actual rates net sales (2.6%) online €89.4bn sales1 vs LY actual rates +0.7% €9.2bn full year operating income vs LY actual rates +3.4% results 2024 €2.8bn vs LY actual rates €824m lower than underlying IFRS-reported results (2.2)% operating results, largely due to costs asso
Slide 22: Comparable sales growth trends by region
comparable sales growth trends by region Actuals excluding gas Ex weather/calendar/other Ex. Gas Q4 Group Comparable Sales Growth excl. gas +1.4% U.S. Q4 Europe Q4 +1.4% +1.2% 6.5% 6.5% 4.7% 4.9% 4.7% 3.9% * 2.8% 2.4% 1.2% 1.4% 1.2% 1.6% 0.8% 0.8% 0.8% 1.2% -0.5% -0.5% -0.4% -1.0% Q4 2023 Q1 2024 Q2
Slide 23: US expanding price investments and building Q4 sales momentum
US expanding price investments and building Q4 sales momentum 2024 Food Lion net sales Achieved 49th consecutive €13.9bn quarters of comparable store sales growth vs LY constant rates (0.6%) ADUSA Stop & Shop Giant Food online sales growth1 First quarter of positive Completed 8 store remodels and Ex
Slide 24: Europe strong performance led by Benelux
Europe strong performance led by Benelux Q4 2024 Delhaize net sales Belgian scientific study €9.4bn confirms Delhaize’s leading position in health, and for the first time, sustainability vs LY constant rates +2.4% Albert Heijn Albert online sales growth Achieved its 6th consecutive 9th consecutive y
Slide 25: bol. full year results 2024
net sales net consumer online bol. €3.1 bn sales1 €5.9 bn full year results vs LY +8.7% vs LY 2024 +4.1% underlying EBITDA capital expenditure €185 m €110 m vs LY vs LY +22.0% -13.8% 1. Net consumer online sales is defined as online sales including sales of third parties through bol’s partners. Net
Slide 26: Q4 and FY 2024 Free Cash Flow Bridge
Q4 Free Cash 140 -1 1,255 Flow Bridge 1,028 108 62 FCF Q4 2024 vs Last Year (in €m) -82 FCF Q4 2023 Operating Changes in Income Tax Net Investments Other FCF Q4 2024 Cash Flow Working Capital Paid Includes €105m additional due to the collection of the contribution to the Dutch €377m Belgian Tax Rece
Slide 27: FY 2024 Net Debt Bridge
FY 2024 Net Debt Bridge Net Debt FY2024 vs Last Year (in €m) 1,037 1,000 14,267 365 5 14,129 (2,545) 2023 Net Debt SBB Dividend FCF FX Other 2024 Net Debt 27 Ahold Delhaize – Q4/FY 2024
Slide 28: Dividend to increase 6.4% to €1.17
7.2% CAGR € 1.17 € 1.05 € 1.10 dividend to increase € 0.95 6.4% to €1.17 +5.6% +10.5% +4.8% +6.4% reflecting our ambition to sustainably grow the dividend per share 2021 2022 2023 2024 28 Ahold Delhaize – Q4/FY 2024
Slide 29: HC&P FY 2024
HC&P FY 2024 Healthy own brand Nutri-score Improved Reduction in food data quality food sales algorithm change waste (T/ €million) Transition to Nutri-Score Better measurement of 52.4% 2.0 algorithm had a negative impact of around 3.5%pts at group 35% waste recycling methods improved data quality. T
Slide 30: Prepared to navigate 2025
prepared to navigate 2025 accelerate new store openings and add to the scope of price remodels investments enrich our omnichannel scale technologies that have a capabilities & drive growth in proven and successful track customer loyalty record 30 Ahold Delhaize – Q4/FY 2024
Slide 31: Starting the integration of Profi into our portfolio
starting the integration of Profi into our portfolio 2025 outlook • Expected to add €3 billion in sales • Dilutive impact to European margin in the first year will be offset by improvements in the rest of the EU region • Net neutral expected impact to EPS taking net financial expenses into account •
Slide 32: Outlook
around €2.7 billion at least gross capital expenditures €2.2 billion at least free cash flow €1.25 billion mid-to save for our customers outlook high-single digit growth 2025 underlying EPS underlying operating margin around 4.0% 1. Calculated as a percentage of underlying income from continuing ope
Slide 33: Prepared to navigate 2025
prepared to navigate 2025 accelerate new store openings and add to the scope of price remodels investments enrich our omnichannel scale technologies that have a capabilities & drive growth in proven and successful track customer loyalty record 33 Ahold Delhaize – Q4/FY 2024
Slide 34: U.S. ready for more pronounced growth
U.S. ready for more pronounced growth • Expect to open an additional 10 new stores and over 220 remodels • Accelerating Growing Together price investments, building on investments made in 2024 • Stop & Shop deploying CVP enhancements to improve customer perception 34 Ahold Delhaize – Q4/FY 2024
Slide 35: Delhaize Belgium shifts back to growth
Delhaize Belgium shifts back to growth • Plans to open 9 new stores • Increasing Little Lions to 1,500 products • Launching a new home shop center • Bringing customers along on the sustainability journey • Planned acquisition of Delfood, which includes 325 points of sale 35 Ahold Delhaize – Q4/FY 20
Slide 36: Scaling and sharing technologies with a successful track record
scaling and sharing technologies with a successful track record • Rolling out SAP S/4HANA to our EU brands • Ramping up operations at our AD/01 tech hub • Bringing Gambit technology to the U.S. retail media business • Implementation of PRISM technology at Food Lion and Hannaford 36 Ahold Delhaize –
Slide 37: Q&A
Q&A 37 Ahold Delhaize – Q4/FY 2024
Slide 38: Calendar
Q4 & FY 2024 calendar 38 Ahold Delhaize – Q4/FY 2024
Slide 39: Corporate calendar
corporate calendar rolling 12 months Q1 Q2 Q3 Q4 2025 2025 2025 2025 February 12 April 9 August 6 November 5 Q4 & FY 2024 results Annual General Meeting Q2 2025 results Q3 2025 results February 26 May 7 Annual Report publication 2024 Q1 2025 results 39 Ahold Delhaize – Q4/FY 2024
Koninklijke Ahold Delhaize — Q4 2024 Earnings Presentation on 6ix