Ahold Delhaize

Ahold Delhaize

28 November 2017Reading time: 2 minutes

Ahold Delhaize is one of the leading food retailers with over 6,500 stores and having about 50 million loyal customers per week. The company is active for 150 years in its core business: selling foods and has over 370,000 employees. The strategy of the company based on three pillars and follow a sustainable business model. First part of the strategy consist buy better and operate in a smart way to gain loyalty from the customers. The second is to fund growth in key channel such as Supermarkets, eCommerce, and proximity groceries to meet every client’s needs. The third is to consider customer’s proposition to be able to adapt quickly to new expectations.

Ahold Delhaize showed a strong performance in the Q3 2017 especially in the US, where the demand is growing compared to Q3 2016. Despite strong competition in this market where ALDI and LIDL are investing massively, Ahold succeed to grow its market share. The US-market remains extremely important for the Dutch company, where its generate almost two third of its revenue. The high return increase is mostly due to a cost reduction program launched after the merge with Delhaize in 2016. Even if the competition is strengthening with the recent acquisition of the organic grocery Whole-foods by Amazon, Ahold could gains further market shares by developing its online grocery business. According to the company a shares buy back program has been decided for 2018, which could support Ahold’s stock price. However, the future development remains to be seen.

At the moment Ahold shares are traded at EUR 16.99 (20.11.2017). The stock reached its annual high at EUR 20.87 (01.03.2017) and its low at EUR 14.72 (29.08.2017). 22 analysts rated Ahold on Buy, 9 on Hold and 2 on Sell. The 12-months target price is estimates with EUR 20.23. On top, Ahold has a current dividend yield of 3.35 percent. Ahold current market capitalization equals EUR 21,811 million. However the future development remains to be seen.

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23/10/2019 20:15:41