Net sales were €17.8 billion, up 6.8%, or 10.1% at constant exchange rates
In the U.S. and Europe, comp sales growth excluding gas was up 12.4% and 7.5%, respectively
Net consumer online sales grew 62.6% at constant exchange rates; including 114.7% growth in the U.S.
COVID-19-related costs were approximately €470 million year to date, and approximately €140 million in Q3, including safety measures and enhanced associate pay
Underlying operating margin was 4.6%, up 0.2% points from the prior year at constant exchange rates
IFRS reported operating income was €207 million, impacted by the previously announced €577 million provision for a U.S. pension plan withdrawal
Diluted underlying EPS was €0.50, increasing 12.3%; diluted EPS was €0.06, unfavorably impacted by the provision for a U.S. pension plan withdrawal
2020 underlying EPS outlook raised to growth in the high-20% range; continue to expect free cash flow to be at least €1.7 billion, net of Q4 payment for a U.S. pension plan withdrawal, and capital expenditures of around €2.5 billion
Announcing a new €1 billion share buyback program to start at the beginning of 2021
Zaandam, the Netherlands, November 4, 2020 – Ahold Delhaize, one of the world’s largest food retail groups and a leader in both supermarkets and e-commerce, reports third quarter results today.
The interim report for the third quarter can be viewed and downloaded at www.aholddelhaize.com
Comments from Frans Muller, President and CEO of Ahold Delhaize
"As COVID-19 continues to impact our communities, I am increasingly proud of our teams' performance. Their intense focus on the safety of our stores and distribution centers and their persistent efforts to provide outstanding service to our local communities are commendable. In Q3, we sustained important investments in additional safety measures, enhanced associate pay and benefits, and significant charitable donations, which resulted in approximately €140 million in COVID-19-related costs in the quarter, and €470 million year to date.
"The operational execution by our teams remains outstanding and has continued to drive strong Q3 performance in both the U.S. and Europe. Our results reflected our ability to leverage our leading local digital and omnichannel platform, which generated nearly 115% net consumer online sales growth in the U.S. and nearly 50% growth in Europe in the quarter, at constant exchanges rates. While there remains a high level of uncertainty in the market, our strong year-to-date performance allows us to raise our 2020 underlying EPS outlook once again.
"We continue to adapt to changes we are seeing in consumer shopping patterns and behavior. Over the coming years, we will invest in our business to solidify our position as an industry-leading local omnichannel retailer and increase our share of the consumer wallet. We will find ways to improve our online productivity and are on track to achieve the €1.9 billion cumulative cost savings target by 2021. To benefit all of our stakeholders, we aim to strike the appropriate balance between investing in the health and safety of associates and customers, supporting our local communities, prioritizing environmental, social, and governance (ESG) initiatives, and returning capital to shareholders.
"We therefore remain committed to our policy for a 40-50% dividend payout ratio and are today announcing a new €1 billion share repurchase authorization for 2021, which is a testament to the strength we continue to see in our business model."
Solidifying position as industry-leading local omnichannel retailer in 2021+
Ahold Delhaize will continue to solidify its position as industry-leading local omnichannel retailer in 2021 and beyond, concentrating on the following three areas:
Ahold Delhaize authorizes new €1 billion share buyback program for 2021
Zaandam, the Netherlands,?November 4, 2020?–?Ahold Delhaize today announces the authorization of a new €1 billion share buyback program, to start at the beginning of 2021. The new program is a testament to the strength the company expects to continue to see in its business model.
Maintaining a balanced approach between funding growth in key channels and returning excess liquidity to shareholders is part of Ahold Delhaize’s financial framework and supports its Leading Together strategy. As COVID-19 continues to impact the company’s communities, Ahold Delhaize aims to also strike the appropriate balance with important investments in additional safety measures, enhanced associate pay and benefits, and significant charitable donations, which resulted in approximately €470 million in COVID-19-related costs year to date.
The purpose of the share buyback program is to reduce the capital of Ahold Delhaize, by cancelling all or part of the common shares acquired through the program.The program will be executed within the limits of relevant laws and regulations, the existing authority granted at Ahold Delhaize’s 2020 annual general meeting of shareholders on April 8, 2020, and the authority (if granted) by the 2021 annual general meeting on April 14, 2021.
The share buyback program is executed in several tranches. For each of them, a dealer is mandated to execute the purchase of the shares at his own discretions in compliance with the Market Abuse Regulation (“MAR”) and within pre-defined execution parameters. Shares are bought in the market and accumulated on the treasury share account until cancellation. Pursuant to the relevant statutory provisions, cancellation may not be effected earlier than two months after a resolution to cancel shares is adopted and publicly announced. Ahold Delhaize is committed to the share buyback program, but given the uncertainty caused by COVID-19, management will continue to monitor macroeconomic developments. The program is also subject to changes in corporate activities, such as material M&A activity.
Ahold Delhaize will provide regular updates on the progress of the program by means of press releases.
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Ahold EUR 24,17 -45ct vol. 1,7 milj.
