Koninklijke Ahold Delhaize NV (ADRNY) Q1 2025 Earnings Call Highlights: Strong Sales Growth and ...

GuruFocus News

Thu, May 8, 2025, 6:00 AM 3 min read

Release Date: May 07, 2025

For the implicit transcript of the net call, delight notation to the full net telephone transcript.

• Koninklijke Ahold Delhaize NV (ADRNY) reported a coagulated archetypal 4th with a 5% summation successful radical nett income astatine changeless rates, reaching 23 billion.

• The company's underlying operating borderline was 3.8%, driven by beardown show successful Europe.

• Online income accrued by 13.7%, marking the 4th consecutive 4th of double-digit maturation successful online market sales.

• The summation of Romanian nutrient retailer Profifi strengthens the company's marketplace presumption and sets the portion up for further maturation and synergies.

• The company's clime targets person received validation from the Science-based Targets initiative, highlighting its committedness to sustainability.

• Profitability successful the US was impacted by terms investments aimed astatine accelerating growth.

• The ongoing geopolitical and macroeconomic volatility presents challenges to the company's operations.

• Despite beardown online growth, the institution faces aggravated contention successful the integer retail space.

• The integration of caller acquisitions, specified arsenic Profifi, whitethorn contiguous operational challenges and necessitate important resources.

• Maintaining a equilibrium betwixt terms investments and profitability remains a captious situation for the company.

• Warning! GuruFocus has detected 10 Warning Signs with ADRNY.

Q: Can you supply much details connected the income maturation and the factors driving it? A: Our income maturation successful Q1 was 5% astatine changeless rates, reaching 23 billion. This maturation was driven by affirmative volumes successful some Europe and the US. In particular, our online income saw a important summation of 13.7%, marking the 4th consecutive 4th of double-digit maturation successful online market sales. This validates the strategical value of our online channel. - CEO

Q: How did the caller acquisition of Romanian nutrient retailer Profi interaction your strategical goals? A: The acquisition of Profi aligns with our ambition to beryllium the fig 1 oregon 2 successful the markets wherever we operate. It sets the portion up for further maturation and synergies, strengthening our marketplace presumption and supporting our strategical goals. - CEO

Q: What are the existent challenges you look successful the US market, and however are you addressing them? A: In the US, portion our margins stay strong, profitability was impacted by terms investments aimed astatine accelerating growth. We are focusing connected maintaining beardown marketplace positions and leveraging our fiscal spot to navigate these challenges. - CFO

Q: Could you elaborate connected your sustainability initiatives and their progress? A: Our committedness to steadfast communities and the satellite remains unchanged. We are pleased with the outer designation of our strategy, specified arsenic the validation of our clime targets by the Science-based Targets initiative. Our yearly study details our advancement successful these areas. - CEO