Investor Relations

EUROPE

Net sales in 2020 were $29,266 million, up by €3,072 million or 11.7% compared to 2019. Sales growth was mainly driven by demand related to COVID-19. In Europe, the effect of COVID-19 has been more balanced, with additional sales matching the related costs. In addition to that, the pandemic has a more mixed impact on the different brands across the European region compared to our brands in The United States.

Online sales were $3,579, up by 42.7% compared to last year, mainly driven by the strong performance of our online brands, bol.com and ah.nl. Bol.com continued its strong net consumer online sales growth from 33.2% in 2019 to 56.8% in 2020. The brand’s business in Belgium and its third-party platform – which currently offers a marketplace to more than 41,000 merchant partners in the Netherlands and Belgium – remain important growth drivers. Sales from ah.nl increased significantly in 2020, mainly driven by higher demand related to COVID-19. Other brands also saw a surge in online sales, complementing the total online sales growth.

In 2020, operating income increased by €240 million, or 21.1%, to €1,380 million. Underlying operating income in Europe was €1,325 million, up by €120 million, or 9.9%, compared to 2019. Underlying operating margin in Europe was 4.5% in 2020, down 0.1% compared to 2019. In Europe, some of our brands, including those in Greece, Romania, Serbia and our To Go stores, were negatively impacted by COVID-19 to a greater extent, suffering from decreasing traffic, the absence of tourists and the trend of people moving from the city to the countryside during the lockdown periods. Margins were mainly impacted by higher underlying operating expenses, particularly driven by higher labor, operational and administrative expenses related to COVID-19. In addition, margin was negatively impacted by the increased pension costs in the Netherlands. This was partly offset by better gross margins driven by lower shrink, lower cost of product and savings from our Save for Our Customers program.

Our net sales in Europe consist of sales to consumers and to franchise stores. Franchise stores operate under the same format as Ahold Delhaize-operated stores. Franchisees purchase merchandise primarily from Ahold Delhaize, pay a franchise fee and receive support services.

For more information, see the Performance review section of the Annual Report 2020.

Elevate healthy and sustainable

Making sure decisions are grounded in doing the right thing for people and our planet.

At Ahold Delhaize, we believe that what’s healthy and sustainable should be accessible and available to all. We aim to ensure that every choice we and our brands’ customers make is the better choice. From sourcing locally and helping farmers and other community and neighborhood producers get a fair deal, to working with suppliers to improve the overall food supply chain, the decisions we make are grounded in doing the right thing for people and our planet.

Our healthy and sustainable growth driver is centered around four primary objectives: enable customers to make healthier choices, provide more product transparency, eliminate food and plastic waste and reduce climate impact.

Strengthen operational excellence

By operating as efficiently as possible today, we will be able to invest in evolving the shopping experience for the future.

We continually look for opportunities to leverage our scale and save money to put back into our customer offering.

Technology and data are enablers for creating a seamless omnichannel experience – so, ensuring data privacy and information security is an increasingly important part of operating our business.

Our omnichannel growth ambitions are supported by our strong and predictable cash flow, efficient and scalable infrastructure and critical-scale technology projects.

As we strengthen operational excellence across our local brands, we have four main objectives: save for our customers, improve our supply chain, enhance store operations and strengthen internal operations across all functions.

Cultivate best talent

Our ambition.

We’re in the people business. The 414,000 associates working across our brands and support offices focus every day on ensuring they serve their customers well and deepen connections with their communities. To be successful, our brands need the best people.

That’s why at Ahold Delhaize and our great local brands, we strive to reflect the markets we serve and make sure associates’ voices are heard and valued and we find purpose in our work, have equitable access to opportunities and can grow and contribute to our fullest.

Our brands place diversity and inclusion at the center of their ambitions. We have a bold aspiration to be a company whose brands and support offices are 100% gender balanced, 100% reflective of the markets they serve and 100% inclusive.

Our four main priorities as we work to cultivate best talent are: create the future of work, pivot our culture, transform our capabilities and cultivate talent.

What we do

Our products are made from raw materials and packaged for sale. Ahold Delhaize’s own-brand products offer great value across different price points and the most relevant local assortment. We develop them in-house, including branding and marketing, and actively work to reduce plastic and increase the use of recyclable materials in packaging. We are re-formulating many own-brand product recipes to reduce sugar, salt, colorants and additives, and our brands achieved 49.8% of own-brand sales from healthy products in 2020.

What we do

Various suppliers manufacture branded products that are delivered to our distribution centers. We give small consumer packaged goods companies the chance to sell their product innovations in our brands’ stores and reach a wider audience. Our suppliers can benefit from our unique customer insights resulting from our strong local presence and over a century of experience in grocery retail. We share our expertise and scale with other food retailers as part of the Coopernic European Buying Alliance and through our partnership with AMS. This enables us to improve product quality and buy more efficiently

What we do

Products are delivered to our warehouses and prepared for transport to stores, pick-up points and customers’ homes. We are continuously adapting our supply chain to serve customers better. Our brands’ automated warehouses and fulfillment centers enable faster distribution to stores and delivery to customers’ homes. In the U.S., we are transforming our supply chain to a fully integrated, self-distribution model.

What we do

Customers can shop with our brands in stores and online. Ahold Delhaize is known for our great local brands, which serve 54 million customers each week. We create the leading local food shopping experience in more than seven thousand local grocery, small-format and specialty stores as well as our online stores. And we sell more than just food – our brands include the top online retailer in the Benelux.

Associates

Working together across stores, distribution centers and support offices, associates bring to life the “local” in our vision.

They are at the heart of our brands’ ability to understand and serve the needs of customers and communities.

Communities

Our brands play a role in the lives of millions of people every day.

We feel a deep sense of responsibility for helping people live better and making communities stronger. We work to create an impact locally and meaningful change globally.

Shareholders

Ahold Delhaize has a long and proud tradition of serving local communities and associates with care, building customer trust and developing strong brands.

This enables us to retain leading market share positions almost everywhere we operate. Our brands’ deep connections with local communities are fundamental to creating long-term shareholder value and underpin our consistent results.