Koninklijke Ahold Delhaize N.V. (AD.AE) Wednesday reported a 65% rise in first quarter net sales, but said the performance in the U.S., where it generates most revenue, was impacted by continuing price deflation, adverse weather and the timing of Easter.
Still, the grocer expects sales performance to improve in the second quarter, and to operate in a slightly inflationary environment in the second half of the year.
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Ahold Delhaize, which was formed last July through the tie-up of Ahold and Delhaize Group, confirmed its target to realize 220 million euros ($239.6 million) in net synergies, including EUR56 million realized to date. It added that the board expects full year underlying operating margin for the group to increase compared with 2016.
For the quarter ended March 31 Ahold Delhaize's revenue was EUR15.87 billion, compared with EUR9.61 billion for the first quarter of 2016, while net profit rose to EUR356 million, from EUR206 million.
Ahold U.S. net sales rose to EUR6.05 billion, from EUR5.99 billion, while Delhaize Americas net sales were EUR3.94 billion in the quarter. No comparable figures were disclosed for Delhaize Americas as the merger was only completed last July.
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(END) Dow Jones Newswires
May 10, 2017 01:32 ET (05:32 GMT)