Koninklijke Ahold Delhaize (AD) Q2 2026 earnings summary

Executive summary

• Delivered a resilient Q2 2026, gaining market share across major markets and brands despite a softer macroeconomic environment.

• Marked the 10th anniversary of the Ahold and Delhaize merger, highlighting the success of the Growing Together strategy.

• Focused on customer value, Own Brand expansion, disciplined investment, and technology-driven operational improvements.

• Continued to invest in AI, digital, and omnichannel capabilities to enhance customer experience and operational efficiency.

• Interim dividend maintained at €0.51 per share; share buybacks totaled €564 million in H1 2026.

Financial highlights

• Q2 net sales reached €23.2 billion, up 1.9% at constant exchange rates and 0.3% at actual rates year-over-year.

• Underlying operating margin was 3.9%, down 0.1 percentage points year-over-year.

• Diluted underlying EPS was €0.63, down 1.4% at constant rates, mainly due to higher financial expenses.

• Q2 free cash flow was €715 million, primarily impacted by calendar and seasonal phasing.

• Q2 underlying operating income was €906 million, up 0.3% at constant rates.

Outlook and guidance

• Reiterated full-year 2026 guidance: underlying operating margin around 4%, free cash flow at least €2.3 billion, gross capex around €2.7 billion, and mid to high single-digit EPS growth at constant rates.

• 2026 will have a 53rd week, expected to boost net sales by 1.5-2% and underlying income by 2-3%.

• Commitment to share buyback and dividend programs, with a targeted dividend payout ratio of 40-50%.

• Expect continued dynamic and demanding operating environment, with subdued volumes and high competition.