Ahold Delhaize NV (Euronext Amsterdam: AD) released Q results last week.
Down 6.6%! In one day! How is that even possible? Did I panic? No, on the contrary, I was happy.
It’s rare to get buying opportunities like this. The stock has been at 34 euros all year and then after a great interim report rose to almost 42 euros. Then it went down a bit and then another crash. Now we’re at 34 euros again (PE 13.6).
Ahold Delhaize reported net sales were EUR22.28 billion in the first 13 weeks of 2026, down 4.3% from EUR23.28 billion a year before, though up 2.0% at constant currency. Sales were up 2.7% at constant currency in Europe but up just 1.5% in the US.
Operating income was EUR895 million, up 1.7% from EUR880 million a year before and up 9.3% at constant currency. Diluted earnings per share were EUR0.62, up 2.8% from EUR0.60 a year before or 11% at constant currency. Diluted underlying EPS also was EUR0.62, up 1.3% or 8.9% at constant currency.
“Disruptions from geopolitical volatility and tensions, including the recent armed conflict in the Middle East, are a reality our business has managed through before,” outgoing CEO Muller said.
“We draw on previous experience and on the measures we have put in place over the past few years to limit the short-term impacts,” he added referencing Russia’s invasion of Ukraine.
Ahold Delhaize confirmed the 2026 outlook that it provided with its 2025 results. This includes an underlying operating margin of around 4%. It was 4.0% in the first quarter. Diluted underlying EPS is expected to grow at a mid- to high-single-digit-percentage rate at constant exchange rates.
Jefferies said Ahold Delhaize’s first-quarter results beat expectations, driven in part by US margin performance. “We understand there has been no major change in April in the US, and Europe remains a consistent consumer environment,” the investment bank said.
“While we recognise there are plenty of moving parts in these results, we would argue that this is a demonstrable beat by one of the most defensive names in food retail at a still-depressed multiple,” Jefferies said.
It looks a little bad from the report and I saw the same trend with my other consumer staples, AxFood. Ahold Delhaize is a latest addition in my portfolio as I focus on diversification. So I slowly and calmly accumulating when things go down. With PE 13.6, rising annual dividend, profit and with -7% in the share price, I can’t pass up this opportunity.
*Always do your own DD.
*I will be going off-grid for a week, so will be back with updates, by next weekend.
Busy And Useful 