Koninklijke Ahold Delhaize (AD) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales reached €22.5 billion, up 6.1% at constant rates, driven by Profi acquisition and strong omnichannel and online growth, with continued investment in pricing, loyalty, and digital innovation.

• Underlying operating margin improved to 4.1%, with U.S. performance and non-recurring items offsetting impacts from Profi integration and price investments.

• Diluted underlying EPS rose 8.7% year-over-year to €0.67.

• Focus on flexibility, resilience, and culture, with investments in own-brand penetration, omnichannel innovation, and community support initiatives.

• A €1 billion share buyback program will commence at the start of 2026.

Financial highlights

• Net sales grew 6.1% year-over-year to €22.5 billion in Q3 2025, with underlying operating margin at 4.1%.

• Underlying operating income was €933 million, up 13.4% year-over-year at constant rates.

• IFRS operating income was €902 million, up 54.7% year-over-year at actual rates.

• Free cash flow for Q3 was €389 million, down year-on-year due to higher capital expenditures and lease repayments, with year-to-date free cash flow at €1.1 billion.

• Online sales for Q3 were €2.4 billion, up 9.1% at actual rates.

Outlook and guidance

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

• Diluted underlying EPS expected to grow mid- to high-single digits, subject to currency volatility.

• U.S. Q4 margin expected to be in line with prior year (4.2%), with continued price investments and strong online growth.

• European Q4 margin profile expected to be similar to Q3 (around 3.8%), with Profi synergies and Serbia pricing decree impacting results.

• €1 billion share buyback program to commence in 2026.