• 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

Summary of key financial data

  Ahold Delhaize Group The United States Europe Ahold Delhaize Group The United States Europe
€ million,
except per share data
% change
% change
% change
% change
% change
% change
Net sales 17,826    10.1  % 10,875    11.3  % 6,951    8.3  % 55,136    12.9  % 34,045    14.5  % 21,091    10.3  %
Comparable sales growth excl. gas 10.5  %   12.4  %   7.5  %   13.1  %   15.5  %   9.2  %  
Online sales 1,334    59.1  % 499    114.7  % 834    37.8  % 3,679    53.0  % 1,336    95.0  % 2,343    36.3  %
Net consumer online
1,780    62.6  % 499    114.7  % 1,281    48.6  % 4,971    59.8  % 1,336    95.0  % 3,636    49.9  %
Operating income (loss) 207    (68.5) % (36)   NM 277    (0.6) % 2,174    13.8  % 1,422    14.6  % 900    11.2  %
Operating margin 1.2  % (2.9) pts (0.3) % NM 4.0  % (0.4) pts 3.9  % —  pts 4.2  % 0.1  pts 4.3  % —  pts
Underlying operating
813    15.9  % 547    27.7  % 300    (3.2) % 2,783    38.6  % 2,024    58.4  % 907    6.9  %
Underlying operating
4.6  % 0.2  pts 5.0  % 0.6  pts 4.3  % (0.5) pts 5.0  % 0.9  pts 5.9  % 1.6  pts 4.3  % (0.1) pts
Diluted EPS 0.06    (83.9) %         1.31    19.6  %        
Diluted underlying EPS 0.50    15.9  %         1.73    46.9  %        
Free cash flow 176    (62.7) %         1,937    134.7  %        

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:

Significantly step-up online capacity, supply chain, and technological capabilities

  • Today, our U.S. businesses reach approximately 90% of households in our markets with home delivery and Click & Collect, and around 70% with same-day options.

  • In 2020 and 2021 cumulatively, we will increase our online capacity by nearly 100% in the U.S. and nearly 50% in Europe. This will be inclusive of an over 50% increase in capacity at bol.com in 2020 and 2021, and an expansion to nearly 1,400 Click & Collect locations in the U.S. by 2021, doubling the locations since the beginning of 2020.

  • To better serve customers, we are improving our U.S. supply chain capabilities by moving to a fully integrated, self-distribution model beginning in 2023; we are progressing on our deliverables ahead of schedule and the first integrated distribution center of the transformation initiative will go live in 2021.

  • Our European businesses will increase electronic shelf labeling options to improve convenience and productivity; this technology will be implemented at more than 50% of our European grocery stores in 2021, doubling the number from 2020; Nearly all Albert Heijn- and Delhaize-owned stores will have electronic shelf labeling by year-end 2020.

Advance omnichannel offerings to consumers

  • The U.S. businesses are focused on enhancing subscription offerings. The GIANT Company will test a new subscription offer in Q1 2021, with an annual membership fee under $100, improved value proposition and preferential delivery time slots, driving increased loyalty and engagement.

  • The U.S. businesses will offer an "endless aisle" solution with an additional 80,000-100,000 general merchandise and food items in the first half of 2021, utilizing the Mirakl platform.

  • The U.S. businesses will continue to enhance the value proposition to customers, including launching 1,500-2,000 more own-brand items in 2021, growing from the existing base of 15,000 items.

  • The Stop & Shop remodeling program in the U.S. will be accelerated, with approximately 60 additional stores in 2021 vs. 31 in 2020. The remodeled stores are performing well, with sales lifts in line with our expectations.

  • In July, Albert Heijn launched a home delivery service in the Antwerp region of Belgium, which is off to a promising start.

  • In August, bol.com expanded to French-speaking Belgium in Brussels and Wallonia; beyond improving access for French-speaking Belgians, the brand has already managed to attract thousands of Belgian third-party sellers.

  • In September, Albert Heijn announced the launch of a no-fee home delivery service in its first market in the Netherlands, targeting smaller households; will expand to additional markets in 2021. 

  • Mega Image in Romania launched a 90-minute home delivery offering in Bucharest in September.

  • Albert Heijn has remodeled over 200 stores to its new fresh and technology-focused format and plans to remodel 170 more in 2020 and 2021. The stores are performing well and providing an uplift in sales and customers relative to the control group.

Address the call to action in ESG

  • Our brands are enhancing their strong value proposition through our leading own-brand offerings; the goal is to have 51% of these sales be from healthy products by 2022.

  • Our brands are focusing on increasing discounts and rewards on healthier products, using nutritional guidance systems like Nutriscore and Guiding Stars, and will implement easy-to-use nutritional labeling across our portfolio by the end of 2025.

  • In October, the U.S. announced its target for at least 54% of own-brand food sales to be from products that achieve one, two or three stars through the Guiding Stars nutrition guidance program by 2025; starting in 2020, they will also disclose annually the percentage of food sales generated from all products that achieve one, two, or three stars.

  • As a member of the 10x20x30 initiative, our brands are partnering with suppliers toward halving food waste by 2030.

  • We are focused on working toward zero plastic waste from own-brand packaging by 2025, including aiming for 25% of own-brand plastic packaging made from recycled materials.

  • We are committed to science-based targets for 2030 to halve carbon emissions from our operations and reduce value chain emissions by 15%.

  • We embrace clear standards on human rights, such as non-discrimination and the prevention of forced and child labor. Following the publication of our inaugural Human Rights Report in June 2020, we are now strengthening governance and working with the our brands to develop local roadmaps that take into consideration the six salient issues and gaps identified in the report.

  • Our brands aim to provide competitive associate pay based on industry practices and local market conditions. Several brands implemented temporary pay enhancements due to special challenges related to the COVID-19 pandemic.

  • We strive for 100% gender balanced candidate and succession slates for all leadership positions. Further, we aspire for 100% of associates to rate the company as inclusive.

Q3 Financial highlights

Group net sales were €17.8 billion, up 6.8%, or 10.1% at constant exchange rates, driven largely by 10.5% comparable sales growth excluding gasoline. Group comparable sales were mainly driven by demand related to COVID-19. Group net consumer online sales grew 62.6% in Q3 at constant exchange rates. Group underlying operating margin in Q3 was 4.6%, up 0.2 percentage points from the prior year at constant exchange rates, benefiting largely from higher operating leverage due to higher sales trends related to COVID-19. This was offset in part by significant costs related to COVID-19, which amounted to approximately €140 million in Q3.

U.S. comparable store sales excluding gasoline grew 12.4%, due largely to the COVID-19 outbreak. Brand performance was strong across the board, led by growth at Food Lion and Giant Food. Online sales in the segment were up 114.7% in constant currency. U.S. underlying operating margin was 5.0%, up 0.6 percentage points from the prior year at constant exchange rates, driven largely by operating leverage from higher sales growth due to COVID-19, offset in part by significant costs related to COVID-19.

Europe's comparable sales excluding gasoline grew 7.5%, due largely to demand related to COVID-19. Net consumer online sales in the segment were up 48.6%. Underlying operating margin in Europe was 4.3%, down 0.5 percentage points from the prior year at constant exchange rates. Operating leverage from higher sales growth was largely offset by higher costs related to COVID-19 as well as €11 million of pension expense in the Netherlands during the quarter and the lapping of one-time items that benefited margins in the Netherlands in the prior year's quarter. Excluding these impacts, underlying operating margin in Europe would have been unchanged versus the prior year.

At bol.com, the online retail platform in the Benelux included within the Europe segment's results, net consumer sales grew by 45.6%. Bol.com's sales from third-party sellers grew 73% in the quarter, with nearly 37,000 merchant partners on the platform.

Ahold Delhaize's net income was €68 million, down 84.9% in the quarter due primarily to a previously announced €577 million provision for a U.S. pension plan withdrawal. Underlying income from continuing operations was €530 million, up 8.6% in the quarter. Diluted EPS was €0.06, down 84.4%, and diluted underlying EPS was €0.50, up 12.3%. Nearly 7.5 million shares were purchased in the quarter for €186 million, bringing the total amount to €705 million in the first three quarters of the year.


COVID-19 continues to create significant uncertainty for the remainder of 2020, though, due to the Company's strong performance so far this year, guidance for underlying EPS is being raised to the high-20% range from low-to-mid-20% growth previously. The group will reach its €7 billion net consumer online sales goal in 2020, one year ahead of plan.

Underlying operating margin in 2020 is still expected to be higher than 2019. 

The 2020 free cash flow outlook of at least €1.7 billion is reiterated and includes the effect of paying the majority of the previously announced €577 million pre-tax obligation to withdraw from the UFCW International Union – Industry Pension Fund in Q4. The capital expenditure guidance of around €2.5 billion is maintained and reflects the Company's accelerated investments in digital and omnichannel capabilities. In addition, Ahold Delhaize remains committed to its dividend policy and share buyback program in 2020, as previously stated. A new €1 billion share buyback program has been authorized, to start at the beginning of 2021.

  Full-year outlook   Underlying operating margin1 Underlying EPS Save for Our Customers   Capital expenditures Free cash flow2   Dividend payout ratio3 Share buyback4
Updated Outlook 2020   Higher than 2019 High-20% growth €600 million   ~ €2.5 billion > €1.7 billion   40-50% €1 billion
Previous Outlook 2020   Higher than 2019 Low-to-mid-20% growth €600 million   ~ €2.5 billion > €1.7 billion   40-50% €1 billion

1. No significant impact to underlying operating margin from the 53rd week, though the 53rd week should benefit net sales for the full year by 1.5-2.0%. Comparable sales growth will be presented on a comparable 53-week basis. As previously communicated, the margin includes a dilution of €45 million in transition expenses from the U.S. supply chain initiative, and an increased non-cash service charge of €45 million for the Netherlands employee pension plan, resulting from lower discount rates in the Netherlands.
2. Excludes M&A
3. Calculated as a percentage of underlying income from continuing operations
4. Management remains committed to the share buyback program, but given the uncertainty caused by COVID-19, they will continue to monitor macroeconomic developments. The program is also subject to changes in corporate activities, such as material M&A activity.

Cautionary notice

This press release contains information that qualifies as inside information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as 2021 (and beyond), constant, growth, outlook, expect(s), continue(s), to start, sustained, continue(d), remains(s), changes, will, on track, by, aim, committed, 2023, year-end 2020, progressing, focused on, aiming for, improving, test, offer, launching, expectations, beyond, focus, now strengthening, promising start, plan(s) (to), goal, 2022, focusing on, 2025, 2030, now strengthening, strive for, aspire, maintained, 53rd week, 53-week basis, should, or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause the actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, risks relating to the Company’s inability to successfully implement its strategy, manage the growth of its business or realize the anticipated benefits of acquisitions; risks relating to competition and pressure on profit margins in the food retail industry; the impact of economic conditions on consumer spending; turbulence in the global capital markets; political developments, natural disasters and pandemics; climate change; raw material scarcity and human rights developments in the supply chain; disruption of operations and other factors negatively affecting the Company’s suppliers; the unsuccessful operation of the Company’s franchised and affiliated stores; changes in supplier terms and the inability to pass on cost increases to prices; risks related to corporate responsibility and sustainable retailing; food safety issues resulting in product liability claims and adverse publicity; environmental liabilities associated with the properties that the Company owns or leases; competitive labor markets, changes in labor conditions and labor disruptions; increases in costs associated with the Company’s defined benefit pension plans; the failure or breach of security of IT systems; the Company’s inability to successfully complete divestitures and the effect of contingent liabilities arising from completed divestitures; antitrust and similar legislation; unexpected outcomes in the Company’s legal proceedings; additional expenses or capital expenditures associated with compliance with federal, regional, state and local laws and regulations; unexpected outcomes with respect to tax audits; the impact of the Company’s outstanding financial debt; the Company’s ability to generate positive cash flows; fluctuation in interest rates; the change in reference interest rate; the impact of downgrades of the Company’s credit ratings and the associated increase in the Company’s cost of borrowing; exchange rate fluctuations; inherent limitations in the Company’s control systems; changes in accounting standards; adverse results arising from the Company’s claims against its self-insurance program; the Company’s inability to locate appropriate real estate or enter into real estate leases on commercially acceptable terms; and other factors discussed in the Company’s public filings and other disclosures. 

Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made, and the Company does not assume any obligation to update such statements, except as required by law.