Koninklijke Ahold Delhaize (AD) Q4 2024 earnings summary

Executive summary

• Achieved or exceeded all key 2024 goals, driven by customer focus, digital expansion, and the Growing Together strategy.

• Q4 2024 net sales reached €23.3 billion, up 0.6% at constant rates; full-year net sales were €89.4 billion, up 0.9%.

• Underlying operating margin for Q4 was 4.1%, and for the full year 4.0%; diluted underlying EPS for the year was €2.54.

• Over €1.35 billion in cost savings enabled price investments and strategic initiatives.

• Free cash flow for 2024 was €2.5 billion, exceeding guidance; management proposes a 6.4% dividend increase to €1.17 per share.

Financial highlights

• Q4 underlying operating income was €958 million, down 3.8% year-over-year; full-year diluted underlying EPS was €2.54.

• Online sales grew 5.8% in Q4 and 3.5% for the year at constant rates, despite FreshDirect divestment.

• Q4 free cash flow was €1,255 million, up 22.1% year-over-year; net debt at year-end was €14.1 billion.

• Dividend payout ratio for 2024 was 46% of underlying income from continuing operations.

• IFRS operating margin was 2.6% in Q4 and 3.1% for the year, impacted by pension plan amendments and restructuring.

Outlook and guidance

• 2025 guidance: underlying operating margin around 4%, mid- to high-single-digit EPS growth, and free cash flow of at least €2.2 billion.

• Gross capital expenditure planned at €2.7 billion, with Profi integration expected to add €3 billion in net sales and €150 million in CapEx.

• Stop & Shop closures to impact reported sales by $550–575 million; regulatory changes in tobacco sales to reduce European sales by ~1 percentage point.

• Dividend per share expected to grow year-over-year; €1 billion share buyback program continues.