Ahold Delhaize Reports Weak Q4 Profit with Positive Outlook

Ahold Delhaize N.V. reports weak profit in Q4 but remains optimistic. Net income falls 15.6%, yet they project growth in sales for 2025, indicating potential stock price resilience.

Date: 12-02-2025

AI Rating: 5

Earnings Per Share (EPS): In the fourth quarter, Ahold Delhaize posted earnings per share of 0.41 euro, down 12.7% from 0.47 euro a year earlier. The underlying EPS of 0.69 euro also decreased slightly from 0.73 euro, indicating a decline in profitability which might impact investor sentiment negatively.

Net Income: The company reported a net income of 380 million euros for Q4, representing a significant drop of 15.6% from 451 million euros in the previous year. This decrease may raise concerns about the company's ability to generate profit, affecting stock prices negatively.

Revenue Growth: Despite the profit decline, net sales increased by 1% to 23.28 billion euros, up from 23.05 billion euros last year. This growth, although modest, shows resilience in sales performance which could mitigate some negative perceptions.

Dividend Increase: Ahold Delhaize proposed a cash dividend of 1.17 euros per share for 2024, a 6.4% increase from the previous year, indicating a commitment to returning value to shareholders. This could provide some positive sentiment to investors despite the profit shortfall.

Future Outlook: For fiscal 2025, the company projects mid- to high-single digit growth in underlying earnings per share and an operating margin around 4%. The expectations of savings from the Save for Our Customers program could enhance margins, adding further optimism about future performance.

In summary, while Ahold Delhaize faces challenges with declining profit metrics, the growth in net sales, a proposed dividend increase, and positive projections for the future could help maintain investor confidence and stabilize stock prices.

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