Ahold Delhaize lifts Q4 profit, sets 2026 outlook

Core Insights - Ahold Delhaize reported stronger Q4 earnings with net sales reaching €23.49bn ($27.88bn), a 6.1% increase at constant exchange rates [1] - The company outlined investment plans and financial guidance for 2026, expecting an underlying operating margin of around 4% and mid- to high-single-digit growth in diluted underlying EPS at constant exchange rates [5] Financial Performance - Net income increased to $577m from $380m a year earlier, supported by the acquisition of Profi, which contributed 3.2 percentage points to growth at constant exchange rates [2] - Operating income for Q4 was €899m, representing 3.8% of net sales, impacted by impairment charges related to a shift towards a store-first omnichannel fulfilment network in the US [1][3] - Free cash flow was €2.60bn, exceeding guidance of at least €2.2bn, with a proposed cash dividend of €1.24, up 6% [5] Sales Growth - Online sales grew 12.9% at constant exchange rates, driven by a 22.8% increase in the US [3] - Comparable sales excluding gasoline rose 2.7% in the US and 2.4% in Europe, with weather and tobacco cessation affecting growth [2][3] - In the US, Q4 net sales were €13.04bn, up 2.5% at constant exchange rates, while in Europe, net sales increased 10.9% at constant exchange rates to €10.45bn [4] Future Outlook - For 2026, the company anticipates an additional 1.5%-2% contribution to net sales and 2%-3% to underlying income from continuing operations due to a 53rd week [6] - The acquisition of Delfood is expected to contribute over €200m in European net sales [6]