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Investing.com -- Ahold Delhaize on Wednesday reported second-quarter underlying EBIT of €917 million, beating consensus estimates of €908 million, supported by improving volumes in the United States and strong sales in Europe.
Revenue for the quarter reached €23.1 billion, ahead of the €22.9 billion consensus. Underlying earnings per share were €0.65, slightly above expectations of €0.64.
Free cash flow totaled €517 million, while financial net debt rose €1.37 billion year over year to €15.5 billion.
U.S. comparable store sales increased 3.4%, compared with a 3.1% forecast. The EBIT margin in the region fell 30 basis points to 4.4%, in line with estimates, as price reductions and growth in online and pharmacy channels weighed on profitability.
In Europe, comparable store sales rose 4.9%, exceeding the 3.8% consensus. The EBIT margin improved by 130 basis points to 3.6%, slightly below the 3.7% forecast.
Jefferies cited ongoing pressure from the acquired Profi chain despite margin progress.
Group Services and Other costs, including insurance, came in at €-41 million versus €-36 million expected. Net interest expenses were €-170 million, above the consensus of €-162 million.
The company maintained its full-year guidance, assuming a euro-dollar exchange rate of $1.10. It continues to project mid- to high-single-digit growth in EPS and free cash flow of at least €2.2 billion, in line with consensus.
Jefferies clarified that the updated figures corrected a previous error that used reported rather than underlying EBIT.