On Wednesday, August 17th Ahold-Delhaize with supermarket operations in the EU and the U.S. reported on the second quarter ending June 30th. Assuming parity between the Euro and the U.S. Dollar, the Group attained a net income of $603 million on net sales of $21,445 million with a diluted EPS of $0.60. Corresponding figures for the second quarter of FY2021 comprised a net income of $540 million on net sales of $18,645 million. The Company achieved an operating margin of 4.2 percent compared to 4.5 percent for the corresponding second quarter of 2021.
The U.S. segment attained net sales of $14,434 million, including online sales of $1,057 million. The U.S. operations achieved an operating income of $642 million compared to $546 million in the second quarter of 2021. Operating margin was 4.7 percent, down from 5.0 percent in the second quarter of 2021. Comparable sales growth was 6.4 percent, excluding gasoline, compared to a -1.5 percent for the second quarter of 2021.
Ahold-Delhaize posted total assets of $49,311 million against long-term debt and lease obligations of $15,861 million. The company operates 2,048 stores in the U.S. under the Food Lion, Stop & Shop, Hannaford, Giant and Pea Pod banners. The EU operations comprise 5,543 stores including 1,127 specialty units.
The company provided guidance of a 4 percent minimum operating margin and mid-single-digit growth compared to 2021 with $2.5 billion for capital expenditures.
In commenting on results, Frans Muller, President and CEO, stated, “For consumers and businesses alike, these are difficult times. The war in Ukraine is causing an unprecedented energy crisis, commodity prices are high, and inflation has reached record levels.” Muller continued, “Our cost-reduction programs help Ahold-Delhaize local brands absorb cost increases relating to energy, transport and labor, enabling us to keep prices as low as possible.”
Referring to the U.S., Muller stated, “A consistent and robust performance of our U.S. brands continued in the quarter. Net sales increased by 7.7 percent at constant rates, and we maintained a healthy, underlying operating profit.” Food Lion continues to perform, strongly achieving its 39th consecutive quarter of growth and double-digit comparable sales. Stop & Shop has taken additional steps in its remodeling program with the announcement of a $140 million investment across its New York City stores over the next two years.