Ahold Delhaize saw its net sales grow by only 0.6% to €23.3 billion, driven by the performance of its European divisions Albert Heijn, Bol, and Delhaize. Meanwhile, investments in the United States are putting pressure on margins, notes RetailDetail.

Results were further impacted by the sale of FreshDirect, the closure of Stop & Shop stores, and the ban on tobacco sales in Dutch supermarkets:

Without these factors, sales growth would have been 2.1%, the retailer stated. Online sales increased by 5.8%. The underlying operating margin declined by 0.2 percentage points to 4.1%, partially due to price investments in the U.S.

Its European division performed well: Dutch retailer Albert Heijn once again increased its market share (despite already being the market leader), while Belgian retailer Delhaize ended the year strongly with a higher market share than before the announcement of its "Future Plan."

The Dutch online marketplace Bol achieved its best quarterly sales, growing by 11%, while in Central and Southeastern Europe, the group’s chains are working increasingly closely together.

Thanks to strong performance in Belgium and a focus on cost control, Europe delivered a “healthy” operating margin of 4.4% in the fourth quarter.

For the full financial year, Ahold Delhaize reported sales of €89.4 billion, an underlying operating profit of €3.6 billion, and a 4% margin. This year, the retailer expects to achieve a margin of approximately 4% again.

The year has started well, said CEO Frans Muller: the acquisition of Profi in Romania will generate an additional €3 billion in sales, while the closure of underperforming Stop & Shop stores in the U.S. has been completed.