Koninklijke Ahold Delhaize (AD) Q2 2026 earnings summary

Executive summary

• Delivered resilient Q2 2026 performance with net sales up 1.9% at constant rates to €23.2 billion, gaining market share across major markets and brands despite a challenging macroeconomic environment.

• Strong execution of the Growing Together strategy, marking the 10th anniversary of the Ahold and Delhaize merger.

• Focused on customer value, Own Brand expansion, disciplined investment, and technology-driven efficiency.

• Online sales surged 8.6% at constant rates, led by 14.5% growth in the U.S., reflecting strong omnichannel execution.

• Underlying operating margin was 3.9%, down 0.1 percentage points, with improvements in Europe offset by a modest U.S. decline.

Financial highlights

• Q2 net sales reached €23.2 billion (+1.9% constant rates, +0.3% actual rates), with a 10 basis point negative impact from calendar shifts.

• Underlying operating income was €906 million (+0.3% constant rates); underlying operating margin was 3.9%, down 0.1 pts.

• Q2 diluted underlying EPS was €0.63, down 1.4% at constant rates; IFRS operating income was €866 million.

• Q2 free cash flow was €632 million; year-to-date free cash flow €302 million, impacted by working capital timing.

• Online sales grew 8.6% at constant rates to €2.7 billion.

Outlook and guidance

• Reiterated 2026 outlook: underlying operating margin around 4%, mid- to high-single-digit EPS growth at constant rates, free cash flow at least €2.3 billion, and gross capital expenditures around €2.7 billion.

• 2026 will have a 53rd week, expected to boost net sales by 1.5-2% and underlying income by 2-3%.

• Commitment to share buyback and dividend programs, with a targeted dividend payout ratio of 40-50%.

• Expect continued dynamic and demanding operating environment, with subdued volumes and high competition.

• Inflation Reduction Act to negatively impact U.S. pharmacy sales by ~$450 million, with no material effect on underlying operating income.