Ahold Delhaize Q2 2025 slides: sales up 6.5%, achieves e-commerce profitability

Introduction & Market Context

Koninklijke Ahold Delhaize NV (OTC:ADRNY) presented its Q2 2025 financial results on August 6, 2025, reporting solid performance with net sales of €23.1 billion, up 6.5% at constant exchange rates compared to the same period last year. The company’s stock closed at €34.42 on August 5, trading between its 52-week range of €29.54 to €37.90.

Building on the momentum from Q1 2025, when the company reported a 5% increase in net sales, Ahold Delhaize demonstrated continued growth across both its U.S. and European operations, with a notable achievement of e-commerce profitability during the quarter.

Quarterly Performance Highlights

Ahold Delhaize reported comparable sales growth excluding gasoline of 4.0% in Q2 2025, with European operations outperforming the U.S. market. The company’s online sales reached €2.5 billion, representing a 14.4% increase at constant exchange rates compared to the previous year.

As shown in the following summary of Q2 2025 performance:

The company’s underlying operating margin was 4.0%, slightly down by 0.2 percentage points compared to the same period last year. Diluted underlying earnings per share increased by 0.7% to €0.65, while the company announced an interim dividend of €0.51.

A more detailed breakdown of the underlying results shows consistent growth across key metrics:

The IFRS-reported results showed an operating income of €861 million, up 9.0% at actual rates, with income from continuing operations increasing by 10.0% to €548 million:

Detailed Financial Analysis

Regional performance varied, with European operations showing stronger comparable sales growth than the U.S. market. The U.S. segment posted comparable sales growth excluding gas of 3.4%, while Europe achieved 4.9% growth in Q2 2025.

The following chart illustrates the comparable sales growth trends by region over the past five quarters:

In the U.S. market, net sales reached €13.2 billion, increasing by 1.9% at constant exchange rates. The region maintained a solid underlying operating margin of 4.4%, though this represented a 0.3 percentage point decrease compared to the previous year. Online sales growth remained robust at 16.4%.

European operations delivered even stronger results, with net sales of €9.9 billion, up 13.4% at constant exchange rates. Online sales grew by 12.7%, while the underlying operating margin remained stable at 3.7%.

Free cash flow improved in Q2 to €517 million compared to €378 million in the same period last year, though the H1 figure showed a slight decline to €715 million from €754 million:

Strategic Initiatives

Ahold Delhaize highlighted several strategic initiatives during the presentation, focusing on four key areas: investing in customer value proposition, densifying and growing markets, innovating for growth and efficiency, and lowering the cost base.

The company reported significant price investments, including $1 billion in the U.S. market and price reductions on 2,500 center store own-brand products at Hannaford. These initiatives aim to strengthen the company’s competitive position in an inflationary environment.

A major achievement highlighted in the presentation was reaching e-commerce profitability, driven by:

• Orientation towards less asset-intense same-day delivery models
• Increasing fulfillment capacity
• Automating operations
• Leveraging retail media propositions

The company also emphasized its progress with the Profi integration, reporting more than 20 store openings and record highs for weekly sales and visitors, contributing to significant revenue growth.

In the digital innovation space, Ahold Delhaize continues to develop AI-powered solutions like MaxiGPT and AH Assistant to enhance customer experience and operational efficiency.

Forward-Looking Statements

Ahold Delhaize reiterated its full-year outlook for 2025, maintaining guidance for:

The company expects an underlying operating margin of around 4.0%, free cash flow of at least €2.2 billion, and gross capital expenditures of approximately €2.7 billion. Additionally, Ahold Delhaize confirmed its commitment to a €1 billion share buyback program and year-over-year growth in dividend per share.

The outlook aligns with the company’s long-term strategy of delivering sustainable omnichannel growth while maintaining leading margins in the grocery retail sector. This continues the trajectory outlined in Q1 2025, when the company reaffirmed its EPS guidance and announced plans to invest €1 billion in its U.S. strategy over the next four years.

With five consecutive quarters of double-digit growth in online grocery and the achievement of e-commerce profitability, Ahold Delhaize appears well-positioned to continue its growth trajectory through the remainder of 2025, despite ongoing challenges in the retail grocery market.

Full presentation:

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