Koninklijke Ahold Delhaize (AD) Q2 2025 earnings summary

Executive summary

• Q2 2025 net sales rose 6.5% at constant rates to €23.1 billion, driven by omnichannel and online growth, strategic investments, and the Profi acquisition.

• E-commerce achieved profitability on a fully allocated basis in H1 2025, with double-digit online grocery sales growth for the fifth consecutive quarter.

• Comparable sales excluding gasoline increased 4.0% year-over-year, with 3.4% growth in the U.S. and 4.9% in Europe.

• Investments in price, own-brand assortment, and digital personalization are driving customer loyalty and market share gains, especially in the U.S. and Europe.

• Operational improvements at Stop & Shop and integration of Profi in Romania are contributing to growth and efficiency.

Financial highlights

• Q2 underlying operating income was €917 million, with an underlying operating margin of 4.0%.

• Q2 operating income reached €861 million, up 9.0% year-over-year; net income was €548 million, a 10.0% increase.

• Diluted underlying EPS rose 0.7% to €0.65; IFRS diluted EPS was €0.60, up 13.3%.

• Q2 free cash flow was €517 million, up 36.7% from the prior year.

• Underlying EBITDA for Q2 was €1,806 million, with a margin of 7.8%.

Outlook and guidance

• 2025 full-year guidance reiterated: underlying operating margin around 4%, free cash flow at least €2.2 billion, and gross capital expenditures of about €2.7 billion.

• Diluted underlying EPS expected to grow mid- to high-single digits, assuming an average EUR/USD rate of 1.10.

• Profi acquisition expected to add ~€3 billion in net sales for 2025.

• Commitment to €1 billion share buyback and year-over-year dividend per share growth.

• Confident in sustaining healthy margins and growth trajectory through 2028, balancing price investments and cost savings.