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Markets News

UPDATE 1-Ahold Q3 sales, earnings beat consensus; raises 2020 forecast

(Updates with details)

AMSTERDAM, Nov 4 (Reuters) - Ahold Delhaize NV, a major operator of supermarket chains in the United States and Europe, reported on Wednesday better-than-expected sales and underlying earnings for the third quarter, with a surge in online orders during the coronavirus pandemic.

Sales were up 10.1% to 17.8 billion euros ($20.7 billion), with underlying operating income of 813 million euros, up 15.9%, the company said.

Analysts in a company-compiled consensus had expected core profit of 767 million euros on sales of 17.5 billion euros.

“Our results reflected our ability to leverage our leading local digital and omni-channel platform, which generated nearly 115% net consumer online sales growth in the U.S. and nearly 50% growth in Europe in the quarter, at constant exchanges rates,” CEO Frans Muller said in a statement.

Ahold raised its outlook for growth in annual earnings per share to the “high 20% range”. In July, it had said per-share earnings growth would be slightly above 20%.

The company said it would keep dividend payout ratio at 40-50% and announced a 1 billion euro share buy-back for 2021, which it said was “a testament to the strength we continue to see in our business models.”

Shares closed at 24.62 euros on Tuesday. ($1 = 0.8587 euros) (Reporting by Toby Sterling; Editing by Himani Sarkar and Keith Weir)

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