Case Studies

Food Lion mauls US competitors helping to deliver a third-quarter earnings beat for Dutch grocer Ahold

The dutch supermarket group Ahold Delhaize reported strong third-quarter earnings on 6th November with profits up 3.7%, beating analysts forecasts on the back of strong sales growth and performance trends from their US supermarket banners Food Lion and Hannaford.

 

The company comfortably beat analysts underlying operating income estimates that came in at 724 million euros versus a 703 million euros figure that was the average of analysts estimates going into results.

 

US banners, which contribute two-thirds of revenues for the dutch firm, helped to drive a 2.9% sales growth in the period. YOY comparable sales growth in the United States was reported at 1.5% with strong trends across Food Lion offsetting challenges that continue to impact results at sister banner Stop & Shop.

 

Shares traded up roughly 3% higher after the announcement. The shares are up approximately 10% higher for the YTD period.

 

Woozle's on-going primary research into the performance and operations of the US banners in particular continued to show positive momentum across business fundamentals, operations, and results in the lead up to earnings.

 

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Our long/buy recommendation before the results were underpinned by broad based reports of between 1-4% LFL sales growth across the Food Lion banners twinned with positive marketing and pricing strategies.

 

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Our research suggests that the brand continues to benefit from their Food Lion app investment, organic and healthy range additions, their "Save for our customer" program, and continued "Food to go" success.

 

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To learn more about how our primary research helps Hedge Funds stay ahead of earnings, email us at sales@woozleresearch.com.

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