Ahold Delhaize presents Leading Together growth strategy at Capital Markets Day in New York
13 Novembre 2018 - 12:01PM
- Driving comparable sales growth and market share gains
- Doubling net consumer online sales to around €7 billion by
2021
- Repositioning Stop & Shop, its largest brand
- Saving €1.8 billion from 2019 through 2021 with Save for Our
Customers
- Delivering high single-digit EPS growth with a stable group
margin in 2019
- Generating around €2 billion in free cash flow annually, 2019
through 2021
New York City, November 13, 2018 - Ahold Delhaize today
introduces its Leading Together strategy at the 2018 Capital
Markets Day in New York City. Supported by its great local brands,
best-in-class cash generation and balanced approach to capital
allocation, this comprehensive strategic program focuses on driving
comparable sales growth and market share gains over the next three
years.
Frans Muller, President & CEO of Ahold Delhaize, said: "The
merger and integration of Ahold and Delhaize Group have created a
strong and efficient platform for growth, while maintaining strong
business performance and building a culture of success. In an
industry that's undergoing rapid change, fueled by shifting
customer behaviour and preferences, we will focus on growth by
investing in our stores, omnichannel offering and technological
capabilities which will enrich the customer experience and increase
efficiencies. Ultimately, this will drive growth by making everyday
shopping easier, fresher and healthier for our customers."
In the next three years, Ahold Delhaize expects to deliver
comparable sales growth and market share gains as well as a
doubling of net consumer online sales to around €7 billion by 2021.
While investing in growth, the company will maintain a disciplined
approach to capital investment and allocation, supported by a €1.8
billion cumulative Save for Our Customers cost program through 2021
and free cash flow of around €2 billion per year from 2019 to 2021.
Capital expenditure will be around 3% of annual sales during the
coming three years.
Frans Muller: "Our commitment is to self-fund the investments
needed to drive growth, as our new cost savings program will allow
us to maintain a stable group margin through 2019. This will allow
us to invest in our stores, omnichannel offering and technology,
while we explore and seize new leadership opportunities in existing
and adjacent markets."
For 2019, Ahold Delhaize expects a stable group margin and high
single digit EPS growth, while buying back €1 billion of its own
shares. To fund investments in the repositioning of its largest
U.S. brand, Stop & Shop and in the speed and coverage of its
delivery and click and collect network, capex is expected to be €2
billion.
Further details will be provided during the Capital Markets Day
presentations, which will be posted on www.aholddelhaize.com
starting at 8:00 AM EST. There will be an audio webcast available
on the website as well.
Please see the following overview of guidance that management
will share during the presentations at the 2018 Capital Markets
Day.
Metric |
2019-2021 |
Global Net Consumer Online Sales |
Double sales to ~ €7 billion |
Save for Our Customers Cost Savings |
€1.8 billion cumulative |
Free Cash Flow |
~ €2 billion per year through 2021 |
Capital Expenditure |
~3% of annual sales |
Stop & Shop repositioning - Incremental
CapEx |
$100 - $150 million annually |
|
|
Metric |
2019 |
Earnings Per Share |
High single-digit EPS growth |
Underlying Operating Margin |
Stable relative to 2018 |
Cost Savings |
~ €600 million |
Net Synergies |
€500 million net cumulative |
Capital Expenditure |
€2 billion |
Share Buyback |
€1 billion |
US Click and Collect Locations |
600+ by year end |
In addition, Ahold Delhaize is now in a position to
provide EPS guidance for 2018 and reiterate guidance items provided
in our Q3 earnings release earlier this month.
Metric |
2018 |
Earnings Per Share |
Underlying EPS at €1.50 - €1.60 |
- Ahold Delhaize presents Leading Together growth strategy at CMD
in NY.pdf
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