Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q2 2024 Earnings Presentation
27 slides from Koninklijke Ahold Delhaize's earnings presentation, Aug 8, 2024
Slide 1: Second quarter 2024 quarterly results
second quarter 2024 quarterly results August 7, 2024
Slide 2: Cautionary notice
cautionary notice This communication includes forward-looking statements. All statements other than increases in costs associated with the Company’s defined benefit pension plans; statements of historical facts may be forward-looking statements. Forward-looking ransomware and other cybersecurity iss
Slide 3: Welcome
Q2 2024 welcome 3 Ahold Delhaize - Q2 2024
Slide 4: Speakers
speakers Frans Jolanda JP Muller d Poots-Bijl O’Meara a President & Chief Executive Officer Chief Financial Officer SVP Investor Relations 4 Ahold Delhaize - Q2 2024
Slide 5: Ahold Delhaize reports solid performance in second quarter and reiterates 2024 outlook
Ahold Delhaize • To support household budgets that continue to be under pressure, our brands delivered value for customers through a continued focus on expanding their high-quality own-brand assortments and reports solid supported by increased promotional activity from vendors. performance in • We a
Slide 6: Quarterly performance
Q2 2024 quarterly performance Frans Muller 6 Ahold Delhaize - Q2 2024
Slide 7: Our growth model
our growth model how we will drive growth Our strategic priorities outline the areas and priorities we chose to realize our vision and stay true to our purpose. Our growth model outlines the specific mechanism we will apply to drive growth. Our growth model works in tandem with our six strategic pri
Slide 8: Grow customer reach and market density with portfolio excellence
densify and grow markets grow customer reach and market density with portfolio excellence 8 densify & expand markets timely intervention when and where actively pursue bolt-on acquisitions required and partnerships 8 Ahold Delhaize - Q2 2024
Slide 9: Leading brand momentum is at the core of our growth
leading brand momentum is at the core of our growth • Food Lion recorded 47th consecutive quarter of comparable store sales growth • Albert Heijn further increasing its market share and growing online sales by double digits • CSE region added 23 new stores across the brands 9 Ahold Delhaize - Q2 202
Slide 10: Delhaize Belgium contributes to strong EU performance
Delhaize Belgium contributes to strong EU performance • 108 store conversions completed • Converted stores performing better than expected due to strong local presence • Market share exceeding pre- announcement levels 10 Ahold Delhaize - Q2 2024
Slide 11: Stop & Shop announced next steps in portfolio optimization
Stop & Shop announced next steps in portfolio optimization • Announced plans to close 32 underperforming stores by the end of the year. • The expected net impact is: • ~$100-$125m to 2024 sales • ~$550-$575m to 2025 sales • Non-recurring pre-tax charge of $160- $210m in Q3 2024 • Opened new flagship
Slide 12: Strengthening our winning CVP by focusing on own brand and loyalty
strengthening our winning CVP by focusing on own brand and loyalty • Launched “Compare & Save” campaigns at Giant Food and Stop & Shop, putting additional emphasis on own brand products compared to national brands • Increased our Price Favorites range in Europe by 15% compared to last year 12 Ahold
Slide 13: Complementary income streams opportunities progressing significantly
complementary income streams opportunities progressing significantly • Scaled our Gambit technology to Alfa Beta and Delhaize Belgium • Introduced new propositions and innovations at AH Retail Media Services • Announced new partnership with Placements.io 13 Ahold Delhaize - Q2 2024
Slide 14: Financial highlights
Q2 2024 financial highlights Jolanda Poots-Bijl 14 Ahold Delhaize - Q2 2024
Slide 15: Relentless cost discipline provides fuel to invest in growth
relentless cost discipline provides fuel to invest in growth negotiating with leveraging AI and simplifying our suppliers mechanization operating model 15 Ahold Delhaize - Q2 2024
Slide 16: Second quarter results 2024 (underlying)
comparable sales growth excl. gas net sales +0.6% U.S. (0.4)%, EU +2.4% €22.3bn online sales2 vs LY constant rates second underlying +0.7% €2.2bn vs LY constant rates quarter operating income1 +3.4% results 2024 €933m vs LY constant rates underlying underlying results +2.6% operating margin1 4.2% vs
Slide 17: Second quarter results 2024 (IFRS-reported)
diluted EPS €0.53 vs LY actual rates net sales +10.4% €22.3bn online sales1 vs LY actual rates €2.2bn second operating +1.2% vs LY actual rates quarter income +3.9% results 2024 €790m vs LY actual rates IFRS-reported results +9.1% €143m lower than operating margin underlying largely due 3.5% to the
Slide 18: Comparable sales growth trends by region
comparable sales growth trends by region Actuals excluding gas Ex weather/calendar/other Ex. Gas Q2 Group Comparable Sales Growth excl. gas Europe Q2 +0.6% U.S. Q2 +2.4% (0.4%) 7.6% 7.0% 7.2% 6.3% 6.5% 6.5% 4.7% 4.0% 3.9% * 3.6% 2.8% 2.4% 0.9% 1.0% 0.8% 0.8% -0.5% -0.5% -0.4% -1.0% Q2 2023 Q3 2023 Q
Slide 19: Accelerating growth in online grocery across both regions
accelerating growth in online grocery across both regions • Online grocery sales in US and Europe growing double-digit excluding FreshDirect divestment • Orders through DoorDash more than doubling compared to Q1 • Albert Heijn opened 2nd automated HSC in Zwolle 19 Ahold Delhaize - Q2 2024
Slide 20: US Q2 2024 solid and consistent performance
US solid and consistent performance Q2 2024 net sales Giant Food €13.6bn Launched ‘Compare and Save’ program, highlighting vs LY constant rates (1.5%) value of own-brand products online AD USA Stop & Shop Hannaford sales growth1 Opened second rooftop Stabilization of shrink levels Expanded associate
Slide 21: Europe Q2 2024 continued recovery of EU performance
Europe continued recovery of EU performance Q2 2024 net sales Alfa Beta €8.8bn Announced a partnership with efood, granting >100k vs LY constant rates efood users access to their +4.3% favorite products within 60 minutes online Albert Heijn Maxi Serbia Albert sales growth Launched unified app, Pilot
Slide 22: Q2 Free Cash Flow Bridge and Q2 YTD Free Cash Flow Bridge
Q2 Free Cash Flow Bridge FCF Q2 2024 vs Last Year (in €m) due to the collection of the €377m Belgian Tax Receivable in the prior year Q2 YTD Free Cash Flow Bridge FCF Q2 2024 YTD vs Last Year (in €m) 22 Ahold Delhaize - Q2 2024
Slide 23: On track towards our 2024 healthier communities & planet ambitions
on track towards our 2024 healthier communities & planet ambitions published increasing ADUSA Albert Heijn celebrating 10 2024 Human own-brand announced joined the years of Food Rights Report healthy Farm-to-Shelf Shelf-Life Lion Feeds products in our Regenerative Coalition and assortment mix Agricu
Slide 24: Outlook
around €2.2 billion net capital expenditures around €2.3 billion free cash flow ≥€1 billion save for our customers outlook around 2023 levels 2024 underlying diluted EPS underlying operating margin ≥4.0% 1. Calculated as a percentage of underlying income from continuing operations year-over- year gr
Slide 25: Q&A
Q&A
Slide 26: Corporate calendar
Q2 2024 corporate calendar 26 Ahold Delhaize - Q2 2024
Slide 27: Corporate calendar
corporate calendar 2024 Q1 Q2 Q3 Q4 2022 2024 2024 2024 August 7 November 6 Q2 2024 Results Q3 2024 results August 29, 2024 Interim dividend 2024 payment date 27 Ahold Delhaize - Q2 2024
Koninklijke Ahold Delhaize — Q2 2024 Earnings Presentation on 6ix