Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Q1 2024 Earnings Presentation
25 slides from Koninklijke Ahold Delhaize's earnings presentation, May 8, 2024
Slide 1: Ahold Delhaize Results Q1 2024
Q1 2024 Ahold Delhaize Results May 8, 2024 Ahold Delhaize – Results Q1 2024 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 reports, solid, outlook, through(out), value, continue(d), hard, ensur(e)/(ing), see, full-year, prepari
Slide 3: Welcome
Welcome JP O’Meara SVP Investor Relations Ahold Delhaize – Results Q1 2024 3
Slide 4: Ahold Delhaize reports solid first quarter
• Throughout Q1 2024, our brands delivered value for customers despite continued economic headwinds. Teams in all our brands are working hard to offset inflation and ensure healthy food remains affordable for customers. We are starting to see the benefits from structural changes in our business rela
Slide 5: Business Highlights
Q1 2024 Business Highlights Frans Muller Ahold Delhaize – Results Q1 2024 5
Slide 6: Preparing for our refreshed strategy and next phase of our journey
Preparing for our refreshed strategy and next phase of our journey Elevating our customer value Focused on cost proposition control and cash flow delivery Simplification of organization to sustain growth investments & drive innovation Ahold Delhaize – Results Q1 2024 6
Slide 7: Leveraging our CVP to provide quality and savings to customers
Leveraging our CVP to provide quality and savings to customers Stop & Shop Albert introduced participates in 15% discount on pilot SNAP valid healthy foods Rewards Program for active users of My Albert app Giant Food lowers prices on hundreds of own brand items & expands Flexible Rewards loyalty pro
Slide 8: Newly converted Delhaize Belgium stores see encouraging results
Newly converted Delhaize Belgium stores see encouraging results Highlights • All 128 stores have now signed agreements with independent buyers • Over half way through store conversions with 76 stores complete • Market share recovered to pre-announcement levels • Converted stores performing better th
Slide 9: One support organization for U.S. businesses: Ahold Delhaize USA
One support organization for U.S. businesses: Ahold Delhaize USA Ahold Delhaize - Results Q1 2024
Slide 10: Albert Heijn offers innovative proposition for business customers
Albert Heijn offers innovative proposition for business customers Highlights • Grew on the B2B market with new partnerships with large childcare services and healthcare providers • Offers all business customers a standard 10% discount on all organic and AH Terra products, the fully plant-based own-b
Slide 11: Investing in new initiatives to drive innovation and accelerate digital transformation
Investing in new initiatives to drive innovation and accelerate our digital transformation AD/01 Ahold Delhaize – Results Q1 2024 11
Slide 12: Financial Highlights
Q1 2024 Financial Highlights Jolanda Poots-Bijl, CFO Ahold Delhaize – Results Q1 2024 12
Slide 13: First Quarter results 2024
Comparable First Quarter Net sales Sales Growth €21.7bn excl. gas results 2024 vs LY constant rates +1.6% +1.3% U.S. +0.8% EU +2.8% Underlying Results Net Consumer Underlying Online Sales1,3 Underlying operating margin2 €2.9bn operating income2 4.0% vs LY constant rates €861m vs LY constant rates (1
Slide 14: First Quarter results 2024 (IFRS-reported)
Online Sales1 Net sales €2.2bn First Quarter €21.7bn vs LY actual rates results 2024 vs LY actual rates (1.2%) +0.4% IFRS-Reported Results Operating margin • €58m in costs driven primarily by Operating income 3.7% the Belgium Future €803m Plan vs LY actual rates (0.1) pts vs LY actual rates (2.3%) D
Slide 15: Comparable sales growth trends by region
Actuals excluding gas Ex weather/calendar/other Comparable sales growth trends by region Ex. Gas Q1 Group Comparable Sales Growth excl. gas Europe U.S. Q1 Q1 +1.6% +0.8% 8.1% +2.8% 7.7% 7.6% 6.2% 7.0% 7.2% 6.3% 6.5% 6.5% 6.1% 4.0% 3.6% 3.2% 2.8% 0.9% 1.0% 0.8% -0.5% -0.5% -1.0% Q1 2023 Q2 2023 Q3 20
Slide 16: USA: Q1 2024
USA: Q1 2024 Ahold Delhaize USA Moved to one support Comparable brand, Ahold Delhaize sales growth ex gas USA, to reduce Giant Food Net sales complexity and simplify €13.3bn 0.8% the support function operating model For fourth year in a row, vs LY Giant Food’s Flexible vs LY constant rates Rewards P
Slide 17: Food Lion leads US brand performance
Food Lion leads US brand performance Highlights • Achieved 46th quarter of consecutive sales growth • Remodeled stores in the Wilmington & Greenville markets continue to deliver against expectations • Recognized as the #1 Grocery Loyalty Program on the East Coast by Newsweek • Honored with the Energ
Slide 18: Europe: Q1 2024
Europe: Q1 2024 EU Tech Comparable Launched a new Tech sales growth ex gas Studio in Romania to strengthen digital, data Maxi Serbia Net sales €8.5bn €X bn 2.8% and tech talent, capabilities and Organized a climate vs LY innovation for EU brands seminar with suppliers with vs LY constant rates the a
Slide 19: Q1 Free Cash Flow Bridge
Divestments were Q1 Free Cash Flow Bridge €129 million higher primarily due to sale FCF Q1 2024 vs Last Year (in €m) of two U.S. meat packaging facilities Largely due to favorable changes in inventory in the US due to timing of holidays Ahold Delhaize – Results Q1 2024 19
Slide 20: Sustainable financing reinforces alignment of funding strategy and ESG ambitions
Sustainable financing reinforces continued alignment of funding strategy to sustainability strategy and ESG ambitions Impact of 2023 2024 Financing Green Bonds • Priced a €1.6 billion multi- • Issued green bond impact & tranche EUR transaction, allocation report for 2023 bonds including: • Proceeds
Slide 21: 2024 outlook
2024 around 2023 around levels €2.2 Underlying ≥4.0% diluted EPS billion Net Capital Underlying Expenditures Operating Margin around €2.3 €1 billion billion Share Buyback2 Free Cash Flow ≥€1 YOY billion growth Save for Our Customers in dividend per share1,2 1. Calculated as a percentage of underlyin
Slide 22: Register for Strategy Day!
Register for Strategy Day! Thursday, May 23 2.00 pm to 6.00 pm CEST Sign up for the webcast via the website Ahold Delhaize –Results Q1 2024 22
Slide 23: Q&A
Q&A
Slide 24: Corporate Calendar 2024
Corporate Calendar 2024 Q2 2024 Q3 2024 Q4 2024 April - June July - Sept Oct - Dec April 10 August 7 November 6 Annual Shareholder Meeting Q2 2024 Results Q3 2024 results April 25 End of August Final dividend 2023 Interim dividend 2024 payment date payment date May 8 Q1 2024 Results May 22-23 Strate
Slide 25: Thank you
8% Ahold “9 Delhaize FOOD#ALION SsTopasHoP. mR Slant, & Giant Q~ en Ex tos att bol. maxi Bi Rentini B [ENA ‘222 GalleGall & Ahold Delhaize Proud companies of
Koninklijke Ahold Delhaize — Q1 2024 Earnings Presentation on 6ix