Ahold Delhaize Says On Track for Merger Targets as Earnings Rise

By Maarten van Tartwijk

AMSTERDAM--The newly merged supermarket operator Koninklijke Ahold Delhaize NV (AD.AE) said its tie-up got off to a solid start after both Ahold and Delhaize reported improved sales and profit in the second quarter.

Ahold reported underlying operating profit of 355 million euros ($400 million) in the three months to the end of June, a 7% rise from last year, while sales rose 3% to EUR8.95 billion. Delhaize saw its underlying operating profit rise 10% to EUR247 million, while its sales rose 3% to EUR6.29 billion.

The merged companies reported separate results because the tie-up was completed after the second quarter on July 24. It will report combined third-quarter results on Oct. 9.

"We have started our new chapter as Ahold Delhaize with good momentum, with these two strong sets of pre-merger results," said Chief Executive Dick Boer.

The deal has created one of the largest supermarket operators in the U.S., combining Ahold's Stop & Shop Giant chains with Delhaize's Food Lion and Hannaford chains. It would give the grocers new muscle in a time of increasing competition from discounters such as Wal-Mart Stores Inc.

Ahold Delhaize said it remains confident that the merger will result in EUR500 million in annual cost-savings by mid-2019 and that it expects synergies to boost operating income by EUR30 million in 2016.

The previously announced disposal of 86 U.S. stores, which was required by the U.S. Federal Trade Commission to secure approval for the merger, will generate EUR127 million in proceeds, the company said. It also said it plans to sell another 10 stores in the Richmond area, without giving further detail.

-Write to Maarten van Tartwijk at maarten.vantartwijk@wsj.com