Ahold Delhaize (AD) 1H16 RESULTS: REVENUES AND NET PROFIT UP, INTEGRATION ON COURSE

Executive Summary

• Ahold reported 1H16 revenues of €20,720 million, up 3.7% from €19,977 million in 1H15. Net income grew by 10.3% to €450 million, and diluted EPS grew by 10.2% to €0.54. Sales in the US grew by 3.1% at constant currency, in the Netherlands by 4.8% and in the Czech Republic by 0.1%, also at constant currency.
• Delhaize Group reported 1H16 revenues of €12,439 million, up 4.2% from €11,934 million in 1H15. Net income grew by 69.4% from €134 million in 1H15 to €227 million in 1H16. Southeastern Europe saw the highest rise in revenue, 14.9%, since 1H16. Operating profit grew by 51.3% there, mainly due to strong sales in Greece and Romania and effective cost control.
• Ahold Delhaize is confident it will reach its synergy target of €500 million on an annual run-rate basis by mid-2019. The company expects a positive impact of €30 million to the operating income during the second half of FY16, from merger synergies.