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1. Company Snapshot

1.a. Company Description

Koninklijke Ahold Delhaize N.V. operates retail food stores and e-commerce primarily in the United States and Europe.Its store formats include supermarkets, convenience stores, drugstores, and hypermarkets.It also subleases its stores to franchisees.


As of January 2, 2022, it operated 7,452 stores primarily under local brands serving approximately 55 million customers, as well as online.The company was formerly known as Koninklijke Ahold N.V. and changed its name to Koninklijke Ahold Delhaize N.V. in July 2016.Koninklijke Ahold Delhaize N.V. was founded in 1887 and is headquartered in Zaandam, the Netherlands.

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1.b. Last Insights on AD

Koninklijke Ahold Delhaize N.V.'s recent performance was positively driven by strong Q4 2025 earnings, with a 5.9% increase in net sales and robust online sales growth, particularly in the U.S., where sales rose 2.5% year-over-year to €13.05 billion. The company's net income also increased to $577m from $380m a year earlier. Strategic initiatives, including store remodels and price investments, have yielded positive results, with its Stop & Shop banner experiencing a "positive wind" in its sails. Ahold Delhaize's 2026 outlook also lifted investor sentiment.

1.c. Company Highlights

2. Ahold Delhaize's 2025 Earnings: A Strong Performance

Ahold Delhaize delivered a robust financial performance in 2025, with net sales increasing 5.9% to EUR 92.4 billion, and comparable sales excluding gas growing 3.2%. The company's underlying operating margin was 4%, and diluted underlying EPS grew 7.8% to EUR 2.67. In Q4, net sales grew 6.1% to EUR 23.5 billion, with comparable sales of 2.5%. The actual EPS for Q4 came out at EUR 0.721, beating estimates of EUR 0.659.

Publication Date: Feb -12

📋 Highlights
  • Strong Sales Growth:: FY 2025 net sales rose 5.9% to EUR 92.4 billion, driven by 6.1% Q4 growth to EUR 23.5 billion.
  • Online Sales Surge:: U.S. online sales grew 22.8% in Q4, with Food Lion seeing 35% growth; full-year online sales up 13.3%.
  • Margin Stability:: Underlying operating margin held at 4% for FY 2025, with Q4 at 4.2%, despite inflationary pressures.
  • Earnings & Dividend Progress:: FY 2025 diluted EPS grew 7.8% to EUR 2.67, and a 6% dividend increase to EUR 1.24/share was proposed.
  • Sustainability Achievements:: Food waste reduced 39.1% since 2016, and CO2 emissions cut 39.1% since 2018, with 52.1% healthy own-brand sales in 2025.

Segment Performance

In the U.S., net sales were EUR 13 billion, with comparable sales excluding gas increasing 2.7%. Online sales growth reached 22.8% in Q4, driven by strong performance across all brands. In Europe, Q4 trends were in line with the prior quarter, with net sales up 11.2% and an underlying operating margin of 4.1%. The company's online sales growth was 12.9% in Q4 and 13.3% for the full year, with a strong performance across all brands.

Guidance and Outlook

Ahold Delhaize expects an underlying operating margin of around 4% in 2026, with mid-to-high single-digit EPS growth at constant rates. The company also expects a free cash flow of at least EUR 2.3 billion and a gross CapEx of approximately EUR 2.7 billion. Analysts estimate revenue growth of 3.2% for next year. As Frans Muller mentioned, "We're positioned for growth with a better supply chain, stronger own brand offer, and investments in pricing."

Valuation

Using the current valuation metrics, Ahold Delhaize's P/E Ratio is 16.65, and the Dividend Yield is 3.08%. The company's ROE is 14.04%, indicating a strong return on equity. The EV/EBITDA ratio is 4.88, suggesting a reasonable valuation. These metrics indicate that the company's stock is fairly valued, with a balance between growth and income.

3. NewsRoom

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The Giant Company buys 2 family-owned stores

Feb -20

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We Think Koninklijke Ahold Delhaize's (AMS:AD) Robust Earnings Are Conservative

Feb -19

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Analysts Have Made A Financial Statement On Koninklijke Ahold Delhaize N.V.'s (AMS:AD) Full-Year Report

Feb -14

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Ahold Delhaize lifts Q4 profit, sets 2026 outlook

Feb -12

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Koninklijke Ahold Delhaize NV (ADRNY) Q4 2025 Earnings Call Highlights: Strong Sales Growth and ...

Feb -11

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Stop & Shop continues to right its course

Feb -11

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Ahold Delhaize Shares Jump After Growth in U.S. Online Sales

Feb -11

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Ahold Delhaize gives suppliers a closer look at nutrition trends

Feb -05

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.29%)

6. Segments

Food: Perishable

Expected Growth: 2.5%

Koninklijke Ahold Delhaize N.V.'s perishable food segment growth of 2.5% is driven by increased demand for fresh products, efficient supply chain management, and strategic store expansions in high-growth markets. The company's focus on quality, sustainability, and digitalization also enhances customer loyalty and purchasing frequency, contributing to steady growth.

Food: Non-Perishable

Expected Growth: 2.2%

The 2.2% growth in Non-Perishable food from Koninklijke Ahold Delhaize N.V. is driven by increased demand for convenient and shelf-stable products, efficient supply chain management, and strategic pricing. The company's strong distribution network and promotions have also contributed to this growth, allowing it to maintain market share and capitalize on consumer trends towards home cooking and meal preparation.

Non-Food

Expected Growth: 1.8%

The 1.8% growth in Non-Food segment of Koninklijke Ahold Delhaize N.V. is driven by strong performance in health and beauty, and general merchandise categories. Increased online sales, improved in-store experiences, and efficient supply chain management also contributed to this growth. The segment's resilience is attributed to its diversified product offerings and adaptability to changing consumer behavior.

Pharmacy

Expected Growth: 3.1%

Pharmacy growth of 3.1% at Koninklijke Ahold Delhaize N.V. driven by increased demand for health and wellness products, favorable demographic trends, and effective loyalty programs. Expansion of online services and in-store health clinics also contribute to growth, while operational efficiencies and strategic partnerships enhance profitability.

Gasoline

Expected Growth: 1.2%

Gasoline sales growth of 1.2% for Koninklijke Ahold Delhaize N.V. is driven by increased consumer spending, higher fuel prices, and strategic investments in convenience store networks. The company's focus on food-to-go and fuel services also contributes to growth, as customers seek convenience and value-added services.

7. Detailed Products

Food Retail

Operates supermarkets, hypermarkets, and convenience stores offering a wide range of food and non-food products

Online Grocery

Provides online shopping services for grocery and household essentials with home delivery or in-store pickup options

Pharmacy and Health

Operates pharmacies and health stores offering prescription medication, health supplements, and wellness products

Fuel and Convenience

Operates fuel stations and convenience stores offering fuel, food, and beverages

E-commerce and Digital Services

Provides digital services, including online shopping platforms, digital coupons, and loyalty programs

Wholesale and Distribution

Distributes food and non-food products to independent retailers, restaurants, and other businesses

8. Koninklijke Ahold Delhaize N.V.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Koninklijke Ahold Delhaize N.V. is medium due to the presence of alternative grocery retailers and online shopping platforms.

Bargaining Power Of Customers

The bargaining power of customers is high due to the high level of competition in the grocery retail market, which gives customers the power to switch to alternative retailers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the company's large scale of operations and its ability to negotiate better prices with suppliers.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the grocery retail market, including the need for significant capital investment and established supply chains.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several large grocery retailers in the market, which leads to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 32.86%
Debt Cost 5.03%
Equity Weight 67.14%
Equity Cost 5.04%
WACC 5.04%
Leverage 48.95%

11. Quality Control: Koninklijke Ahold Delhaize N.V. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Imperial Brands

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Growth: 5.0

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Momentum: 9.0

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Ahold Delhaize

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Yield: 6.2

Momentum: 6.5

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Quality: 5.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.22$

Current Price

41.22$

Potential

-0.00%

Expected Cash-Flows