Ahold Delhaize: Sales Up in Q2, 2026 Targets Confirmed
The Dutch-Belgian food retailer released sales showing slight growth in the second quarter on August 5, 2026, driven by Europe and e-commerce.
Against a backdrop of cautious consumer spending, the group confirmed all of its financial targets for fiscal year 2026, despite a slight decline in its operating margin and earnings per share.
23.2 Billion Euros in Sales, Underlying Operating Margin at 3.9%
Net sales for the second quarter reached 23.2 billion euros, up 1.9% at constant exchange rates and 0.3% at current rates. Comparable sales excluding fuel advanced 1.2% across the entire group.
Online sales increased 8.6% at constant rates, driven by growth of 14.5% in the United States, where the group recorded its ninth consecutive quarter of double-digit growth in this channel. The underlying operating margin came in at 3.9%, down 0.1 percentage point at constant rates, with improvements in Europe more than offset by a decline across the Atlantic.
IFRS operating profit reached 866 million euros, representing an IFRS margin of 3.7%. Underlying diluted earnings per share came in at 0.63 euros, down 1.4% at constant rates compared to last year, a level in line with the average analyst expectation of 0.63 euros for the quarter.
Europe Supports Margin While United States Faces Regulatory Headwinds
In the United States, net sales reached 13.0 billion euros, up 1.4% at constant rates but down 1.3% at current rates, with comparable sales excluding fuel advancing 0.8%. The underlying U.S. operating margin declined 0.2 percentage point to 4.2%, driven by price investments, higher energy costs and absorption of indirect costs, partially offset by favorable mix in pharmacy.
The group cites several factors weighing on U.S. operations: pharmacy price declines related to the Inflation Reduction Act, egg price deflation and reduction in SNAP program assistance.
In Europe, net sales advanced 2.6% at constant rates to reach 10.2 billion euros, with comparable sales excluding fuel up 1.7%. The underlying European operating margin gained 0.1 percentage point to 3.9%, driven in particular by a lower sales tax rate (IMCA), realization of synergies in Romania and productivity gains.
2026 Targets Reiterated: Margin Around 4% and Free Cash-Flow of at Least 2.3 Billion Euros
The group confirmed all targets announced when it released its fourth quarter 2025 results. For fiscal year 2026 (53 weeks), it targets an underlying operating margin of approximately 4%, underlying diluted earnings per share growth at a mid-to-high single-digit rate at constant rates, free cash-flow of at least 2.3 billion euros and gross capital expenditures in cash of approximately 2.7 billion euros.
Several elements are incorporated into these outlooks: the Inflation Reduction Act is expected to weigh approximately 450 million dollars on reported and comparable U.S. sales, with no material impact on underlying operating profit; the acquisition of Delfood, completed on February 2, 2026, is expected to add more than 200 million euros in sales to the European segment; finally the 53rd week of the fiscal year should provide a positive effect of 1.5 to 2% on net sales.
The 2026 interim dividend is set at 0.51 euros, identical to that of 2025. In the second quarter, the group repurchased 9.0 million of its own shares for 340 million euros, bringing the total to 564 million euros in the first half.
