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(Sharecast News) - Ahold Delhaize reported higher sales and profit for the 2025 financial year on Wednesday but missed earnings expectations, even as it posted a fourth-quarter underlying operating income beat and raised its dividend.
The Netherlands-based supermarket group generated net sales of 92.35bn for the year, broadly in line with the 92.31bn consensus, while net income attributable to common shareholders rose to 2.26bn from 1.76bn.
Earnings per share increased to 2.50 from 1.89.
However, both net income and EPS came in below expectations of 2.36bn and 2.62 respectively.
In the fourth quarter, sales rose to 23.5bn from 23.28bn a year earlier, slightly ahead of analyst estimates of around 23.34bn.
Operating profit climbed 48% year on year to 899m.
Underlying operating income reached 994m, exceeding the 918m expected by analysts, supported by a strong performance in the United States, where the group operates chains including Stop & Shop, Giant, Food Lion and Hannaford, alongside Albert Heijn and Delhaize in the Netherlands and Belgium.
Free cash flow increased 2.2% to 2.6bn in 2025, driven by underlying earnings, though the company expects this to ease to at least 2.3bn in 2026.
The group proposed a final dividend of 0.73 per share, taking the full-year payout to 1.24, up from 1.17 previously.
Looking ahead, Ahold Delhaize said it expected an underlying operating margin of 4% in 2026, compared with 4.2% in the fourth quarter, and guided for mid- to high-single-digit growth in underlying earnings per share at constant exchange rates.
At 0918 CET (0818 GMT), shares in Koninklijke Ahold Delhaize were up 9.28% in Amsterdam at 37.93.
Reporting by Josh White for Sharecast.com.