Food retailer Ahold Delhaize met estimations with a 3% rise in Q4 core earnings Wednesday supported by its Food Lion and Hannaford U.S. grocery stores and strong online sales.
Ahold, which makes two-thirds of its sales in the U.S., estimates 2020 margins “broadly in line” with last year and mid-single-digit development in underlying earnings per share.
Overall underlying operating revenue soared to 765 million euros ($834 million) for the three months to December 31 from 743 million. Sales rose 5.5% to 17.4 billion euros, helped by a strong greenback.
The results had been in line with the revenue of 762 million euros on sales of 17.3 billion estimate by analysts.
In the U.S. market, where it’s focused on eastern America and in addition operates the Cease & Store and Large chains, comparable gross sales grew 2.3%.
Ahold, which competes with companies including Kroger, Walmart, and Amazon, mentioned its U.S. online sales jumped almost 43%.
The corporate maintained its online sales goal of 7 billion euro by 2021, up from 4.55 billion in 2019.
For 2020, the business is focusing on 30% online sale development in the U.S., where it’s opening heaps of new grocery pick-up stops and expanding warm meal delivery.
In the Benelux nations, where Ahold runs the dominant Albert Heijn grocery store chain, comparable sales climbed 4.3%.
Ahold stated it had won market stake for the first time in several quarters, as online sales rallied upward.