Grocery retailer Ahold Delhaize has reported a steady increase in its financial performance for the third quarter (Q3) of fiscal 2024 (FY24), with net sales reaching €22.0bn ($23bn).
This 1% growth at constant exchange rates is a slight (0.2%) increase at actual exchange rates compared to the same period of the previous year.
The retailer's growth was fuelled by a 1.4% rise in comparable sales, excluding gasoline, and the strategic expansion of its store network, including the integration of Jan Linders stores.
Online sales also saw an uptick, with a 5.1% increase at constant exchange rates led by robust growth in online grocery sales, excluding FreshDirect.
Despite the divestment of FreshDirect impacting results negatively by 7.3 percentage points (pps), Ahold Delhaize's underlying operating margin improved to 3.9%, up by 0.1pps at constant exchange rates, buoyed by strong European performance and consistent results from US operations.
The company's operating income stood at €583m for the quarter under International Financial Reporting Standards (IFRS), translating to an IFRS operating margin of 2.7%.
The IFRS figures were €272m lower than the underlying results, primarily due to costs associated with the closure of Stop & Shop stores and expenses related to the Belgium Future Plan.
Diluted earnings per share (EPS) of Ahold Delhaize was recorded at €0.40 in Q3 FY24, while diluted underlying EPS rose to €0.62 - a 7% increase at actual currency rates compared to the same period of the previous year.
During the third quarter, the company continued its investment in self-purchase shares, acquiring 8.7 million own shares for €260m during the quarter and totalling €761m for the first three quarters.
Ahold Delhaize president and CEO Frans Muller stated: "I am pleased to report a solid performance in the third quarter, placing us well on track to achieve our strategic objectives and underlying financial goals for the year.
“As our brands operate in dynamic market environments, we are keeping a clear focus on elevating the customer value proposition, maintaining a sharp eye on cost levels and taking the right measures to step into our new Growing Together strategy, which is designed to drive consistent growth and long-term value creation.”
Looking ahead, Ahold Delhaize reaffirmed the 2024 outlook outlined in its Q4 2023 results announcement.
The company anticipates an underlying operating margin of 4% or higher and expects underlying EPS to remain around the levels seen in 2023 at current exchange rates.
