Ahold Delhaize beats revenue forecasts, announces 1 bln euro share buyback
Corrects typographical error in company name in headline with no changes to text
Nov 6 (Reuters) -Supermarket group Ahold Delhaize AD.AS reported higher-than-expected sales for the third quarter on Wednesday, driven by growth in comparable sales and net store openings, and announced a 1 billion euro ($1.1 billion) share buyback for 2025.
"In the U.S., we continue to see momentum building, and I expect further improvements in trends through the holiday season," CEO Frans Muller said in the statement.
However, he said the group's U.S. performance was impacted by the ramp down of operations at the 32 Stop & Shop stores planned for closure and a recall of Boar's Head deli products, which had an impact of around $70 million in the quarter.
The Dutch company, which operates the Stop & Shop, Giant, Food Lion and Hannaford chains in the United States, said its quarterly revenue was 22 billion euros, while analysts were expecting 21.9 billion on average in a company-compiled consensus.
The owner of Albert Heijn and Delhaize chains in the Netherlands and Belgium is targetting 1 billion euros in cost reductions this year to offset pressure on profit margins as food price inflation falls and consumers curb their spending.
It reiterated its outlook for the full-year 2024.
($1 = 0.9306 euros)
Reporting by Alban Kacher in Gdansk; editing by Milla Nissi
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