Ahold Delhaize Sees 1Q Group Net Sales Growth

   By Adriano Marchese

Koninklijke Ahold Delhaize NV said Tuesday that it expects group net sales growth to rise in the first quarter of 2020, and maintains its full-year profit outlook.

The Dutch grocer said that net sales growth is expected to be around 15% in the quarter, which at a constant currency represents a 13% rise.

Underlying operating margin--a metric which excludes exceptional costs--is expected to be above the prior year also.

Looking ahead into the year, the company said that there is much uncertainty for its 2020 outlook due to the pandemic spreading across the world.

As a result, it said that there is increased uncertainty in sales over the course of the year, "especially as it applies to changes in consumer shopping patterns and behavior."

It noted that it will likely be unable to sustain the underlying operating margin seen in the first quarter, but added that it maintains that it will be broadly in line with 2019.

Underlying earnings per share are still expected to be in the mid-single-digit range for the year.

However, free cash flow is expected to exceed previous guidance of 1.5 billion euros ($1.6 billion), benefiting from delayed capital programs due to the coronavirus. It noted that the free cash flow guidance "expressly excludes" merger-and-acquisition activity.

The board said it will propose a cash dividend of EUR0.76 a share, up 8.6% from the prior year.

First-quarter earnings are set to be reported on May 7, the company said.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 07, 2020 12:48 ET (16:48 GMT)

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