Delhaize Belgium tempers profits for Ahold Delhaize

Summary

Sales at Delhaize supermarkets in Belgium fell by 1% last quarter, performing worse than the rest of the Ahold Delhaize markets

Little growth

Ahold Delhaize, the supermarket group resulting from the merger of Belgian chain Delhaize and the Dutch Albert Heijn, has announced group results for Belgium showing a 1% fall in income in the last quarter of 2016. Of the group’s five sectors – Belgium, the Netherlands, two divisions in the US and one in Central Europe – Belgium performed the worst.

The results for the last quarter of 2016 are the first to cover the combination of the newly composed group. Overall, the group saw its turnover increase by 3.7% compared to 2015, but that was held back by growth in Belgium – represented by the Delhaize chain – of only 1.7%, and little opportunity to grow market share.

Delhaize also under-performed on margins, with a figure of 5.4% compared to 7% achieved by the Dutch concern – composed of Albert Heijn and the online store Bol.com – and the 6.8% achieved by Ahold USA and central Europe, and the 6.6% achieved by Delhaize America.

Ahold Delhaize has been ordered by Belgium’s competition authority to divest itself of eight Albert Heijn stores in Flanders.