Ahold Delhaize saw its net sales increase 4.3% to €22.1bn during its second-quarter period, with the European supermarket giant hailing the strength of its own-label proposition and the success of its loyalty programmes in offering personalised discounts to cash-strapped consumers.
The group reported a 4.4% rise in underlying operating profit to €904m, citing good US margins and strong European sales growth. Overall margin was unchanged at 4.1%.
In the US, where it operates the Stop & Shop, Giant, Food Lion and Hannaford chains, comparable sales rose 3.6% to €13.6bn.
In Europe, sales from its Albert Heijn and Delhaize chains rose 6.3% to €8.5bn.
Consumer online sales across both divisions climbed 9.3%.
Chief Executive Frans Muller noted the group’s success at adjusting quickly to meet its customers’ needs amid the inflation crisis whilst continuing with its various “transformation projects”.
He added: “On a positive note, we see more evidence that inflation has passed its peak,” with Ahold Delhaize reflecting this with price decreases, where possible.
However, Muller highlighted that for its operations, inflation remained at more elevated levels due to higher energy, commodity, transport and labour costs, all of which are having a notable impact on its European margins.
