Ahold Delhaize Maintains Momentum, Reporting Strong Q3 Results; Frans Muller Details
THE NETHERLANDS - Once again proving the strength of its retail market prowess, Ahold Delhaize continues to weather the storm of challenges hitting the industry by maintaining its forward momentum. The grocer recently released its third quarter 2021 results, revealing a total net sales increase of approximately €700 million ($801 million USD).
"Our Q3 results once again showed the resilience of our business model, with our brands building further on 2020's COVID-19-related sales gains, as various societies across our markets reopened in the quarter. During these ever-changing times, we remain proud of the significant efforts of associates in all our brands and businesses, who continue to tirelessly serve our communities,” said Frans Muller, President and Chief Executive Officer. “In Europe and the United States, our businesses faced additional disruptions in Q3 related to the Belgian floods, tornadoes in the Czech Republic, fires in Greece, and Hurricane Ida in the U.S. We would like to send a special thank you to the affected associates for their continued dedication to their communities during these difficult times, and for truly living our core values.”
This year, Ahold's Q3 results showed net sales of €18.5 billion ($21.1 billion). For the same period last year, Ahold achieved €17.8 billion ($20.8 billion).
As a key part of its quarter three sales increase across the company, Ahold’s U.S. division saw a 6.8 percent increase to $13.16 million, according to the report. Online sales also saw a sizeable jump as the pandemic and consumer desire for convenience continues to boost the sector. Online sales grew 30.6 percent overall to $1.94 billion, and 52.9 percent to $757 million in the U.S. from the same period last year.
Other highlights from the report are as follows:
- On a two-year comparable sales growth basis, comparable sales in the U.S. were up 15.3 percent and in Europe were up 7.3 percent in Q3 2021, both of which remain elevated relative to historic levels
- In Q3, net consumer online sales grew 29.2 percent at constant exchange rates, building on top of the significant 62.6 percent growth in Q3 2020.
- YTD sales increased 4.5 percent to $63.4 billion for the Ahold Delhaize Group as a whole and 4.3 percent to $38.17 billion in the U.S.
Looking ahead, Muller said that the company will continue to expand its omnichannel business model to meet consumer needs. Part of this strategy was showcased as the company’s banner, The GIANT Company recently opened a new e-commerce fulfillment center in Philadelphia, Pennsylvania.
"We continue to solidify our position as an industry-leading local omnichannel retailer by executing our strategy to improve supply chain, advance omnichannel offerings, and enhance omnichannel productivity,” he added. “To improve the efficiency of our supply chain, the U.S. business has now achieved self-distribution for 65 percent of center store volume and remains on schedule to transition to a fully self-distributed network in 2023.”
To read the report in its entirety, click here.
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