RetailDetail EU
Europe - EN
  • België - NL
  • Belgique - FR
  • Nederland - NL
  • Europe - EN
  • About us
  • Contact
  • Subscribe
  • Sign in user
  • News
    • Food
    • Fashion
    • Home
    • Electronics
    • Beauty/Care
    • DIY/Garden
    • Leisure
    • General
  • RetailDetail Plus
  • Events
  • Hunts
  • RetailHub
  • Advertising & Partnerships
    • EVENT PARTNERSHIPS
    • PRINT ADVERTISING
    • ONLINE ADVERTISING
RetailDetail EU
Europe - EN
  • België - NL
  • Belgique - FR
  • Nederland - NL
  • Europe - EN
  • About us
  • Contact
  • Sign in user
  • News
    • Food
    • Fashion
    • Home
    • Electronics
    • Beauty/Care
    • DIY/Garden
    • Leisure
    • General
  • RetailDetail Plus
  • Events
  • Hunts
  • RetailHub
  • Advertising & Partnerships
    • EVENT PARTNERSHIPS
    • PRINT ADVERTISING
    • ONLINE ADVERTISING
thumb
Written by Pauline Neerman
In this article
  • Tags industrial action
  • Companies Ahold Delhaizebol.comDelhaize
  • Topics Financial results
  • People Frans Muller
Share article
  • facebook
  • instagram
  • twitter
  • linkedin
  • email

Delhaize strikes give Ahold Delhaize margin (small) dent

icon
Food10 May, 2023

Ahold Delhaize continued to grow fine last quarter, although strikes at Delhaize weighed on European sales and income. The Belgians (partly) caused a smaller operating margin.

Strikes cost European income

Inflation remains a challenge, insists CEO Frans Muller announcing the quarterly results. Still, Ahold Delhaize appears to have other headaches. The underlying operating margin clocked in at 4%, which was 20 basis points (0.02%) lower than a year ago. In the important US, however, there was strong profit growth.

Things faltered in Europe, where operating profit fell 21.2% to 202 million euros. Resigning CFO Natalie Knight refers to cost increases in Europe, especially energy prices, but also the strike at Delhaize. Ahold Delhaize is franchising its 128 self-owned Delhaize shops in Belgium, causing a lot of union protest. Excluding the impact of increased energy costs and the strikes, underlying operating margins would have been slightly higher than last year.

1.6 percentage points missed sales

Sales would also have been even higher without the strikes. Group revenue in the quarter rose 6.3% to 21.6 billion euros, a growth borne nicely by both the US (6.2%) and Europe (6.1%). Without the strikes in Belgium, however, European comparable sales would have risen 7.7%, Frans Muller admits. Analysts estimated missed sales at 100 million euros, Ahold Delhaize itself does not give exact figures.

Net online sales rose 5.9% in the quarter, again mainly thanks to the US (11.9%) where consumers are increasingly ordering their groceries online. In Europe, Ahold Delhaize sold 1.8 billion euro through e-commerce, a modest growth of 2.5%. Yet e-commerce is already bigger in Europe than in the States and there is one explanation for that: Bol.com.

Bol.com finds growth again

Since the Covid-driven boom, Bol.com has been in a bit of a slump, although the online department store is now snapping back up with some growth. The platform sold 1.3 billion euros worth of products last quarter, up 1.2% on last year and improving its growth rate compared to Q4 2022.

“Now that we are past the difficult COVID comparisons, we expect growth rates to improve significantly in the future,” the company says. Among other things, the platform is betting strongly on advertising (+13%) and logistics services to raise more revenue.

For the remainder of the year, Ahold Delhaize is sticking to its earlier forecast of stable earnings. The company is also sticking firmly to its plans to make all Delhaize supermarkets independent. Muller restated the plans, calling them “courageous”. Although it “takes a lot of courage and is disruptive in the short term, I am confident these measures will also ensure the long-term success of our brands, for the benefit of all our stakeholders.”

Stay up-to-date

Receive our free newsletters and do not miss out on the latest retail news.

Subscribe
logo
  • industrial action

Ahold Delhaize continued to grow fine last quarter, although strikes at Delhaize weighed on European sales and income. The Belgians (partly) caused a smaller operating margin.

More on Food
See more
  • icon
    Food22 September, 2023
    Lidl profits under pressure

    Lidl has seen its net profit fall by a quarter to 1.64 billion euros last year. To make matters worse, rising interest rates seem to make any speedy improvement impossible as well.

  • icon
    Food22 September, 2023
    Game, set, (S)Match: Colruyt buys 57 stores, redundancy procedure started for remainder

    Belgian retail chains Match and Smatch are coming to an end. Having already sold their stores abroad earlier this year, they now also disappear from their home market. Colruyt Group acquires 57 stores, while closure looms over the almost thirty other stores (and supporting services).

  • icon
    Food21 September, 2023
    Jumbo: “Not leaving, but expanding in Belgium”

    Dutch supermarket chain Jumbo has had a slower start in Belgium than expected, but that is no sign to retreat from the country. Rather, the general planning is slowed down a bit, to fifty Belgian stores by 2025.

Events
  • 19
    Oct
    Category Management Congress
  • 23
    Nov
    RetailDetail Night
Most read
  • icon
    Fashion29 August, 2023
    Ace & Tate needs to cut costs as losses mount
  • icon
    Fashion13 September, 2023
    Inditex achieves record margins in inflationary times
  • icon
    Food8 September, 2023
    Carrefour exposes “shrinkflation” in stores
  • icon
    Fashion19 September, 2023
    H&M ends free returns
Follow RetailDetail
  • socialFacebook
  • socialTwitter
  • socialInstagram
  • sociallinkedIn
footer-logo
RetailDetail, the leading b2b-retailcommunity in the Benelux, keeps retail professionals up-to-date by means of online & offline publications, retail events, inspiring retail hunts and the unique co-creation platform retailhub, where retailers and their suppliers can experience the future of shopping.
RetailDetail Mailing Address:
Kolveniersstraat 7, bus 26 
2000 Antwerp
Visiting address:
Stadsfeestzaal – Meir 78 
2000 Antwerp
How to reach us:
Directions
© 2023 RetailDetail
general conditions | privacy policy
+32 3 500 89 59 info@retaildetail.be
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies.
Accept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT