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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 negatively driven by the consumer staples sector's lagging performance, with the company's stock underperforming its peers. Despite strong Q1 2025 earnings, including robust online sales growth and strategic expansion in Europe, challenges in the US market, such as slowing sales growth, may have contributed to the negative sentiment. Additionally, the company's recent upgrade to a Zacks Rank #1 (Strong Buy) on June 19, 2025, may not have had enough time to positively impact the stock price.

1.c. Company Highlights

2. Ahold Delhaize Beats Expectations with Strong Q3 Performance

Ahold Delhaize reported a robust Q3 2025 performance, with net sales growth of 6.1% to EUR 22.5 billion, driven by a solid volume performance across regions. The underlying operating margin was 4.1%, with the U.S. segment delivering a margin of 4.6%, supported by careful timing of promotions and higher sales leverage. Earnings per share (EPS) came in at EUR 0.683, beating analyst estimates of EUR 0.635.

Publication Date: Nov -06

📋 Highlights
  • Net Sales Growth: Achieved 6.1% year-on-year increase to EUR 22.5 billion, with U.S. sales at EUR 12.9 billion (+1.9%).
  • Operating Margins: Maintained 4.1% underlying operating margin globally, with U.S. margin at 4.6% and Europe stable at 3.9% despite Profi integration challenges.
  • Online Sales Expansion: Recorded double-digit online growth for six consecutive quarters, with U.S. growth at 15.4% and Europe at 11.9%, driven by PRISM platform rollout and same-day delivery expansion to 90% of stores.
  • Regional Performance: Europe saw 12.4% sales growth (9.1% from Profi integration), while U.S. comparable sales rose 3.1% excluding gas, supported by Food Lion’s real estate pipeline and price strategy.
  • ESG Commitments: EUR 1 billion investment over four years to reduce prices for vulnerable communities, with reaffirmed MSCI AA and Sustainalytics low-risk ESG ratings.

Segmental Performance

The U.S. segment reported net sales of EUR 12.9 billion, a 1.9% increase, with comparable sales growth of 3.1% excluding gas. Europe saw sales of EUR 9.6 billion, a 12.4% increase, driven by the integration of Profi, which contributed 9.1% to this growth. Adjusted comparable sales growth in Europe was 3.4%, excluding the impact of tobacco sales.

Online Grocery Sales Growth

Ahold Delhaize continued to experience strong online grocery sales growth, with a 15.4% increase in the U.S. and 11.9% in Europe, marking a sixth consecutive quarter of double-digit online growth. The company's disciplined store-first model supports enhanced convenience, delivery immediacy, and profitability, with over 2,000 stores offering same-day fulfillment options.

Valuation Metrics

With a P/E Ratio of 17.61 and an EV/EBITDA of 4.89, Ahold Delhaize's valuation appears reasonable, considering its strong financial performance and growth prospects. The company's ROE of 12.5% and ROIC of 7.23% indicate a solid return on equity and invested capital. Analysts estimate next year's revenue growth at 1.8%, which is factored into the current valuation. As Frans Muller noted, "We're confident that our strong foundations, dedicated associates, and customer-first mindset enable us to deliver on our promises for the year."

Outlook and Guidance

Ahold Delhaize expects to deliver a strong holiday season, serving customers with healthy and affordable products. The company remains on track to meet its full-year 2025 free cash flow commitments and has reconfirmed its EUR 1 billion annual share buyback program for 2026. With a Dividend Yield of 3.27%, the stock offers an attractive income stream, making it an appealing option for investors seeking a combination of growth and income.

3. NewsRoom

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Results: Koninklijke Ahold Delhaize N.V. Exceeded Expectations And The Consensus Has Updated Its Estimates

Nov -08

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Will Strong Q3 Earnings and Buyback Boost Alter Ahold Delhaize's (ENXTAM:AD) Shareholder Value Story?

Nov -07

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Koninklijke Ahold Delhaize NV (ADRNY) Q3 2025 Earnings Call Highlights: Strong Sales Growth ...

Nov -06

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Assessing Ahold Delhaize (ENXTAM:AD) Valuation After Recent Share Price Momentum

Nov -06

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Ahold Delhaize grows in Q3 2025 after acquisition and higher online sales

Nov -06

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Ahold Delhaize sees improvements at Stop & Shop

Nov -05

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Ahold Delhaize names new Delhaize brand president

Nov -04

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HowGood, The World’s Largest Agricultural Emissions Database, Joins Forces with PACT to Unlock Standardized Decarbonization Across the Food Supply Chain

Oct -29

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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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Value: 5.8

Growth: 5.3

Quality: 6.3

Yield: 9.4

Momentum: 9.5

Volatility: 9.7

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Ahold Delhaize

A-Score: 6.9/10

Value: 7.1

Growth: 5.8

Quality: 5.0

Yield: 6.2

Momentum: 7.5

Volatility: 10.0

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Value: 5.7

Growth: 5.6

Quality: 4.0

Yield: 4.0

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Value: 3.6

Growth: 6.0

Quality: 5.0

Yield: 6.2

Momentum: 10.0

Volatility: 5.0

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Axfood

A-Score: 5.6/10

Value: 4.2

Growth: 5.8

Quality: 4.1

Yield: 5.6

Momentum: 5.0

Volatility: 9.0

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Colruyt

A-Score: 5.2/10

Value: 7.7

Growth: 4.6

Quality: 4.3

Yield: 6.9

Momentum: 1.0

Volatility: 7.0

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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

35.01$

Current Price

35.01$

Potential

-0.00%

Expected Cash-Flows