Koninklijke Ahold Delhaize N.V.

Q2 net sales increased 1.9% to EUR 23.2 billion. Underlying operating margin was 3.9%, down 10 basis points year over year, and diluted underlying EPS was EUR 0.63, down 1.4% at constant rates, mainly due to higher financial expenses. On an IFRS reported basis, Q2 results were EUR 41 million lower than underlying results, mainly due to impairment charges on U.S. stores, the sale of investment properties and lease terminations. By region, U.S. net sales were EUR 13 billion and comparable sales excluding gas rose 0.8%, while Europe sales were EUR 10.2 billion and comparable sales increased 1.8% excluding calendar shifts. Free cash flow was EUR 632 million in Q2 and EUR 302 million year to date. Management reiterated full-year guidance: underlying operating margin of around 4%, free cash flow of at least EUR 2.3 billion, gross capex of around EUR 2.7 billion, and diluted underlying EPS growth at mid- to high single digit at constant exchange rates.

Frans Muller framed the quarter as a proof point that the Grow & Together strategy is working, emphasizing market-share gains in a tougher macro backdrop. He stressed three priorities: staying close to customers through value, quality and convenience; simplifying work for associates with technology, data and AI; and investing with discipline. He also highlighted own-brand growth, omnichannel convenience, and a more mature AI agenda, saying the company is moving from testing use cases toward end-to-end transformation in areas like sourcing, merchandising, marketing and shopping.

Jolanda Poots-Bijl said the company is navigating a demanding environment from a position of strength, with resilient volumes and share gains in most major markets. She cited U.S. margin pressure from price investments, utility costs and higher energy-related indirect costs, but said the full-year margin guidance of around 4% still looks feasible and she sees “not a lot” of downside to it. She also pointed to EUR 632 million of Q2 free cash flow, EUR 302 million year-to-date free cash flow, and reaffirmed that the EUR 2.3 billion full-year free cash flow target remains intact because the year-on-year decline is largely timing-related working-capital phasing. She reiterated capital allocation discipline, gross capex of around EUR 2.7 billion, and the EUR 1.25 billion cost-savings trajectory for this year.

Analysts focused heavily on U.S. competition, price investment timing, and whether the environment is becoming a more aggressive price war. Management said the competitive environment is rational, that the company is investing price where it matters, and that Stop & Shop is already seeing higher sales, volume and an all-time-high NPS of 79%. Questions also covered whether deeper price investment could be funded by more cost savings; management said it already has flexibility and is on track for EUR 1.25 billion in cost savings this year. Other topics included SNAP, where management kept the full-year impact guidance at 60 to 80 basis points, U.S. online growth, and Europe/Romania synergies; management said online is growing in double digits and that Romania integration synergies are flowing better than expected.