Quarterly earnings of Ahold Delhaize increase, yet underlying EBITDA decreases; maintains financial forecast for 2025
Ahold Delhaize N.V., a Dutch retail and wholesale holding company (ADRND.PK, AHODF.PK), has released its financial results for the second quarter of 2025, highlighting cautious growth amid competitive and inflationary challenges in the grocery sector.
In the second quarter of 2025, Ahold Delhaize N.V.'s net sales grew by 6.5 percent at constant exchange rates to €23.1 billion. This growth was driven by a 3.4 percent increase in comparable sales in the U.S. and a 4.9 percent increase in Europe. Excluding gasoline, comparable sales increased by 4.0 percent.
Despite the growth, the company's underlying operating margin dropped slightly by 0.2 percentage points year-over-year to 4.0 percent. The margin was impacted by sector pressures and strategic investments. However, the company aims to maintain an underlying operating margin of around 4% for the full year.
The company's earnings per share (EPS) for the second quarter of 2025 were €0.60, up 13.3 percent from last year. Underlying EPS remained the same at €0.65. For fiscal 2025, Ahold Delhaize N.V. continues to expect underlying earnings per share to grow at a mid- to high-single-digit rate.
Ahold Delhaize N.V.'s net income grew 10 percent to €548 million, but the impact of the first-time consolidation of Profi and strategic U.S. price investments affected the company's performance. Underlying EBITDA edged down 0.3 percent to €1.806 billion.
The company's Q2 2025 results were also impacted by the closure of Stop & Shop stores and the cessation of tobacco sales in the Netherlands and Belgium, which negatively impacted net sales by 1.2 percentage points. On the other hand, the acquisition of Profi positively impacted net sales by 3.4 percentage points at constant exchange rates.
In terms of dividends, Ahold Delhaize N.V. announced an interim dividend of €0.51 per share for 2025, up from €0.50 in 2024, following the Group’s dividend policy.
The company is focusing its investments around €2.7 billion on omnichannel expansion and digital innovation. It aims to achieve a free cash flow target of at least €2.2 billion for the full year.
Overall, Ahold Delhaize N.V.'s 2025 outlook is one of cautious growth supported by cost discipline and digital transformation. The company remains committed to delivering value to its shareholders and customers in the face of challenging market conditions.
[1] Ahold Delhaize N.V. (2025). Q2 2025 Trading Update. [online] Available at: https://www.aholddelhaize.com/investors/news-and-presentations/2025/q2-2025-trading-update
[2] Ahold Delhaize N.V. (2025). Q2 2025 Results Presentation. [online] Available at: https://www.aholddelhaize.com/investors/news-and-presentations/2025/q2-2025-results-presentation
[3] Ahold Delhaize N.V. (2025). Half Year Results 2025. [online] Available at: https://www.aholddelhaize.com/investors/news-and-presentations/2025/half-year-results-2025
[4] Ahold Delhaize N.V. (2025). Q2 2025 Trading Update Supplemental Information. [online] Available at: https://www.aholddelhaize.com/investors/news-and-presentations/2025/q2-2025-trading-update-supplemental-information
[5] Ahold Delhaize N.V. (2025). Q2 2025 Results Presentation Supplemental Information. [online] Available at: https://www.aholddelhaize.com/investors/news-and-presentations/2025/q2-2025-results-presentation-supplemental-information
[1] Ahold Delhaize N.V.'s Q2 2025 results show a cautious growth strategy, as the underlying operating margin slightly decreased due to sector pressures and strategic investments in business expansion.
[2] Despite the margin drop, the company continues to invest heavily in finance, focusing on omnichannel expansion and digital innovation, aiming for a free cash flow target of at least €2.2 billion for the full year.
