reports
- Ioannis Pontikis
No-Moat Ahold Delhaize Reports In-Line 1Q; Guidance Confirmed; Shares ...
No-moat Ahold Delhaize reported first-quarter 2018 results with 2.5% growth in sales at constant exchange rates (down 5.9% at current exchange rates), in line with our expectations. Underlying operating margin improved by 20 basis points to 4%, supported by synergies, while management reaffirmed guidance for fiscal 2018 (EUR 750 million gross synergies, EUR 1.9 billion free cash flow and EUR 1.9 billion capital spending). We are maintaining our EUR 18.60 fair value estimate. Shares look fairly...
- Ioannis Pontikis
Ahold Delhaize Reports In-Line 4Q and FY 2017 Sales With Strong Online...
No-moat Ahold Delhaize reported fourth-quarter and full fiscal 2017 sales growth of 1.6% and 1.7% (pro forma) respectively, in line with our 2017 sales forecast. Management confirmed fiscal 2017 EBIT guidance (3.9% EBIT margin) and increased free cash flow, or FCF, guidance for the year (but didn't give specific guidance). We maintain our EUR 18.60 fair value estimate, and as such, we believe shares are fairly valued in the market. Weakness in the Northeastern U.S. is continuing as Ahold USA r...
- Adam Kindreich
- CFA
Ahold Delhaize Reports a Strong Fourth-Quarter Sales Performance; Fair...
No-moat Ahold Delhaize, or AD, reported a strong close to 2016, with fourth-quarter sales up 2.8% in constant currencies and adjusted for 2015's 53-week period. This was slightly ahead of our expectations and driven by strong trading in the Netherlands, particularly from online sales. Guidance reiterates that the 2016 underlying operating margin will be slightly ahead of that of 2015, and we are raising our fair value estimate by 5% to EUR 21. Comparable sales growth was 6.6% in the Netherlands ...
- Adam Kindreich
- CFA
We're Reducing Our Ahold Delhaize Fair Value Estimate by 7% to EUR 20 ...
Ahold Delhaize, or AD, reported disappointing third-quarter results showing poor cash generation and higher net debt levels than expected, coupled with weak U.S. performance due to pricing pressure. We trim our EBIT estimates by around 3%-4% for 2016 and beyond, and reduce our fair value estimate by 7% to EUR 20. Around two thirds of this reduction is due to adjustments to our net debt balance, with one third due to weaker operating estimates. Generally, top-line performance everywhere was reaso...
- Adam Kindreich
- CFA
Reinitiation of Coverage With No-Moat Rating and EUR 21.50 Fair Value ...
We reinitiate coverage of Ahold Delhaize following a change of analyst, with a no-moat rating and a EUR 21.5 fair value estimate, implying negligible upside potential. The investment case hinges on the likelihood of success in the merger with Delhaize, currently in its very early stages. The company's approach is comforting: No store banners will be changed, and both firms will continue to function autonomously within the group. Thus, customer disruption will be limited, as this normally occurs ...
- Adam Kindreich
- CFA
Ahold's Q2 Results Impress by Overcoming Market Challenges
Ahold Delhaize reported solid second-quarter results showing good performance across the board, with comparable-store sales growth coupled with margin expansion. The firm achieved this despite several challenges, including persistent price deflation, competitive pressures in the U.S. market, price investments across the store network, and disruption from store transformations at Delhaize Belgium. Our fair value estimate and moat rating remain under review. Ahold's Dutch business was the main dr...
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