Overview

• Netherlands food retailer's Q1 net sales rose 2% at constant FX, fell at actual rates

• Diluted underlying EPS for Q1 rose 8.9% at constant FX yr/yr

• Company reiterates 2026 outlook for operating margin and EPS growth

Outlook

• Ahold Delhaize reiterates 2026 outlook: underlying operating margin around 4%

• Company expects mid- to high-single-digit diluted underlying EPS growth at constant exchange rates

• Free cash flow for 2026 expected to be at least €2.3 bln

Result Drivers

• US SALES DRIVERS - US comparable sales growth was supported by online sales and positive weather/calendar shifts, but offset by pharmacy pricing changes, egg price deflation, and lower SNAP benefits

• ONLINE SALES GROWTH - Online sales rose 8.3% at constant FX, driven by 14.3% growth in the US and expansion of omnichannel offerings

• EUROPEAN EXPANSION AND REGULATION - European sales benefited from the Delfood acquisition and new stores, but were negatively impacted by the end of tobacco sales in Belgium and regulatory interventions in Serbia

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Koninklijke Ahold Delhaize NV is €42.00, about 6.5% above its May 5 closing price of €39.43

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago

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