Ahold Delhaize’s Q2 Achieves E-Commerce Profitability
Zaandam, Netherlands-based Ahold Delhaize, one of the world’s largest food retail groups and a leader in both supermarkets and e-commerce, has reported solid second quarter performance, with strong sales growth.
Net sales were €23.1 billion, an increase of 6.5% at constant exchange rates and up 3.3% at actual exchange rates. Net sales growth was driven by the Profi acquisition, comparable sales growth excluding gasoline of 4.0%, and store openings, partially offset by the closure of Stop & Shop stores and lower gasoline sales. The company's Q2 comparable sales excluding gasoline were positively impacted by 0.8 percentage points, due to calendar shifts, and negatively impacted by 0.6 percentage points from the cessation of tobacco sales at supermarkets in the Netherlands and Belgium.
For the fifth consecutive quarter, online grocery sales have surged with double-digit growth. In fact, Ahold Delhaize has already reached e-commerce profitability for 2025, on a fully allocated basis.
For Q2, Ahold Delhaize online sales increased 14.4% at constant exchange rates. This was driven by double-digit growth in online grocery in both Europe and United States and strong performance at online retailer bol.
Online achievements have been driven by several factors including same-day models like click and collect and partnerships with DoorDash and Instacart, automating operations and leveraging retail media.
A Closer Look at U.S. Business
For Q2, U.S. net sales were €13.2 billion, an increase of 1.9% at constant exchange rates and down 3.1% at actual exchange rates. Comparable sales excluding gasoline in the United States increased 3.4%, driven by continued growth in online and pharmacy sales. Calendar shifts had a positive impact of approximately 0.9 percentage points. Net sales were negatively impacted by 1.1 percentage points from the closure of Stop & Shop stores and lower gasoline sales.
In Q2, online sales increased 16.4% in constant currency, led by strong growth at Food Lion banner.
Food Lion completed the rollout of Ahold Delhaize’s proprietary PRISM platform. PRISM enables faster, more tailored online shopping, helping customers easily find favorite products, activate digital coupons, re-order quickly, and choose delivery or pick-up with ease. In the second half of the year, PRISM is expected to launch at Hannaford Supermarkets.
Underlying operating margin in the United States was 4.4%, down 0.3 percentage points due to price investments and the dilutive impact from growth in online and pharmacy sales.
Ahold Delhaize has committed $1 billion in price investments in the U.S. over the next four years while also leveraging the strength of its own-brand portfolio. For example, in May, Hannaford rolled out price cuts on approximately 2,500 center store, own-brand items in Massachusetts, supported by a targeted omnichannel marketing campaign, and leveraged the Hannaford My Rewards loyalty program. The investment is already showing promising results, with center store, own-brand sales modestly outpacing the rest of the store.
So far this year, Ahold Delhaize has introduced 300 new own-brand products in the U.S. Own-brand assortments are a key differentiator, helping drive customer loyalty and providing quality at affordable prices.
Company Outlook
Following the first half of the year, Ahold Delhaize has reiterated its 2025 outlook. Underlying operating margin is expected to be around 4%; free cash flow is expected to be at least €2.2 billion; and gross capital expenditures are planned at around €2.7 billion. Diluted underlying EPS is expected to grow at a mid- to high-single-digit rate, based on an average euro/U.S. dollar exchange rate for the full year of 1.10. Diluted underlying EPS results at actual exchange rates are subject to dollar volatility.
"Our focus on striking the right balance between investing in growth and creating opportunities to drive operational excellence continue to fuel the positive outlook for our company," said Frans Muller, president and CEO of Ahold Delhaize. "With our strong culture – known for its agility, consistency, ability to drive transformative change and commitment to sustainability – I am confident we are well prepared to navigate the complexities of the current business environment and position the company to drive brand strength and market share growth in the coming periods."
The company’s family of local brands serves over 72 million customers each week, both in stores and online. Together, these brands employ approximately 390,000 associates in over 7,000 grocery and specialty stores. The Ahold Delhaize USA division is No. 11 on The PG 100, Progressive Grocer’s 2025 list of the top food and consumables retailers in North America. PG also named the company one of its Retailers of the Century and among the 10 Most Sustainable Grocers of 2025.
