Supermarket operator Ahold Delhaize saw profits dip by 6.7% in the third quarter of this year, largely due to the cost of selling off its Belgian stores.
Ahold Delhaize, which operates brands including European chains Delhaize, Albert Heijn, Etos and Gall & Gall, reported sales of €22 billion in the third quarter, up by 1% compared to the same period last year. In Europe, sales increased by 2.6% to €8.5 million. However, the group's operating profit of €583 million was 6.7% lower than the same time last year.
As in previous quarters of 2024, profits at Ahold Delhaize have been impacted by the costs relating to the group's 'Belgium Future Plan', which involved the sale of 128 of its Delhaize stores in Belgium.
Frans Muller, President and CEO of Ahold Delhaize, said that results for the quarter were impacted by "non-recurring costs, largely related to the costs associated with the previously announced closure of underperforming stores at Stop & Shop and the transition of stores as part of the Delhaize Belgium Future Plan."
When the sale of the Belgian supermarkets was first announced in March 2023, it led to fierce protests among staff and numerous union actions. However, by February of this year independent owners had been found for all 128 stores.
Muller confirmed that the last Belgian store transitioned to new ownership this week. Overall, he said that Ahold Delhaize saw a "solid performance" in the third quarter.
"We are well on track to deliver on our 2024 commitments and we reiterate our guidance for the year," he said, as the group expects an underlying operating margin of "at least" 4%.
"I am also pleased to announce the continuation of our €1 billion annual share buyback programme in 2025, which underscores our confidence in the direction of our business for the year ahead," he added.
