{"id":52068,"date":"2024-07-03T10:18:02","date_gmt":"2024-07-03T08:18:02","guid":{"rendered":"https:\/\/www.captrader.com\/?post_type=analyse&#038;p=52068"},"modified":"2024-08-31T10:00:46","modified_gmt":"2024-08-31T08:00:46","slug":"ahold-delhaize","status":"publish","type":"analyse","link":"https:\/\/www.captrader.com\/en\/analyse\/ahold-delhaize\/","title":{"rendered":"DGI model portfolio: THE AHOLD DELHAIZE SHARE"},"content":{"rendered":"<ul class=\"wp-block-list\">\n<li>The Belgian-Dutch group Ahold Delhaize is the leader in some European markets, but the retailer generates more than 60 percent of its sales in the United States - and the trend is rising<\/li>\n\n\n\n<li>Thanks to the non-cyclical business model in consumer staples trading and the defensive nature of the sector, the company is characterized by stability in terms of profits and cash flows<\/li>\n\n\n\n<li>The expansion of e-commerce sales and the focus on the direct-to-consumer business in the major cities on the US East Coast should strengthen the company's competitive position in the long term<\/li>\n\n\n\n<li>Since the merger in 2016, Ahold Delhaize has paid an increasing dividend for each financial year. The retailer also impresses with an opportunistic share buyback program. Over the past six years, the buy-backs have reduced the proportion of outstanding shares by around a quarter<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list styled-list\">\n<li>Click here for the <a href=\"https:\/\/www.captrader.com\/en\/dividend-custody-account\/portfolio\/\">DGI model portfolio<\/a>&nbsp;and here to the overview of this series <a href=\"https:\/\/www.captrader.com\/en\/dividend-custody-account\/\" target=\"_blank\" rel=\"noreferrer noopener\">The dividend custody account<\/a>.<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"989\" height=\"461\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienchart.png\" alt=\"A chart showing the share price of Ahold Delhaize from 2015 to 2024. It shows fluctuations and a general upward trend, with the current value at \u20ac 27.96.\" class=\"wp-image-52069\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienchart.png 989w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienchart-300x140.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienchart-768x358.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienchart-18x8.png 18w\" sizes=\"auto, (max-width: 989px) 100vw, 989px\" \/><figcaption class=\"wp-element-caption\"><em>Current share chart of Ahold Delhaize (source: aktien.guide)<\/em>&nbsp;<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Company profile and business model: Who is Ahold Delhaize and what does it do?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The merger of the Dutch Koninklijke Ahold with the then smaller Delhaize Group in 2016 marked the beginning of the <strong>The birth of \"modern history\"<\/strong> of this industry heavyweight.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But why does the conglomerate from the Benelux countries advertise with a <strong>150 years of history<\/strong> on the <a href=\"https:\/\/www.aholddelhaize.com\/about\/\" rel=\"nofollow noopener\" target=\"_blank\">official website<\/a>? That's because the roots of the Belgian arm of the company go back to 1867. At that time <strong>Jules Delhaize<\/strong> Together with his brothers, he runs a grocery store near Charleroi.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The origin of the <strong>Dutch part of the Group<\/strong>Koninklijke Ahold NV\", goes back to a grocery store founded by Albert Heijn in Oostzaan in 1887. Named after the company pioneer, the \"<strong>Albert Heijn<\/strong>\" retail brand rose to become the leading supermarket chain in the Netherlands in the 1970s. During this period, Ahold began to expand by acquiring companies in <strong>Spain<\/strong> and the <strong>USA<\/strong> internationally. The \"<strong>Koninklijke\"<\/strong> in the company name stands for the Dutch word royal and refers to the centenary award in 1987, when <strong>Kings Beatrix<\/strong> which Ahold N.V. fittingly congratulated with this honorary title.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A few decades later and after a first attempt at the <strong>Fusion <\/strong>in 2006, Ahold and Delhaize announced their agreement to merge in the summer of 2015. Increased competitive pressure, primarily driven by the expansion offensive of discounters such as the German flagships Aldi and Lidl, fueled this strategic move. Ahold paid around <strong>25 billion euros<\/strong> to Delhaize. The merger agreement was signed on July 23, 2016 following approval by the shareholders and competition authorities. The first day of trading of the shares on the stock exchange was July 25, 2016.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today, the Group includes <strong>19 local brands<\/strong>which are represented in a total of ten countries. In the <strong>7,659 supermarkets worldwide<\/strong> become <strong>Over 60 million customers every week from over 414,000 employees<\/strong> serviced.<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1333\" height=\"925\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Praesenz-Ahold-Delhaize.png\" alt=\"World map highlighting Ahold Delhaize&#039;s presence in the US and Europe, showing 414,000 employees, 60 million customers weekly, 19 local brands, 7,659 stores and financial performance metrics.\" class=\"wp-image-52080\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Praesenz-Ahold-Delhaize.png 1333w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Praesenz-Ahold-Delhaize-300x208.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Praesenz-Ahold-Delhaize-1024x711.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Praesenz-Ahold-Delhaize-768x533.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Praesenz-Ahold-Delhaize-18x12.png 18w\" sizes=\"auto, (max-width: 1333px) 100vw, 1333px\" \/><figcaption class=\"wp-element-caption\"><em><em>The market presence of Ahold Delhaize (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/vy4neu1n\/ar-2022-ahold-delhaize-interactive-final.pdf?t=638143108570530000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2022, p. 30<\/em><\/a><em>)<\/em><\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">The <strong>business model<\/strong> of Ahold Delhaizes essentially consists of traditional food retailing and other consumer goods in the non-food, pharmacy and gasoline segments. Together, perishable and non-perishable foodstuffs form the core, accounting for 80 percent of sales. Non-food\" includes, for example, the sale of care products, pet food, tobacco products, electrical appliances, etc. Sales in the petrol station and pharmacy business are limited to the US branch under the <strong>The Giant Company<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"670\" height=\"186\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geschaeftssegmente-Ahold-Delhaize.png\" alt=\"Table showing net sales by product category for 2022 and 2021. Categories include perishable and non-perishable food, non-food products, pharmaceuticals and gasoline. The percentages total 100 % for both years.\" class=\"wp-image-52082\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geschaeftssegmente-Ahold-Delhaize.png 670w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geschaeftssegmente-Ahold-Delhaize-300x83.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geschaeftssegmente-Ahold-Delhaize-18x5.png 18w\" sizes=\"auto, (max-width: 670px) 100vw, 670px\" \/><figcaption class=\"wp-element-caption\"><em><em>Ahold Delhaize's business segments by share of sales (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/vy4neu1n\/ar-2022-ahold-delhaize-interactive-final.pdf?t=638143108570530000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2022, p. 203<\/em><\/a><em>)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A special feature of the <strong>high degree of diversification<\/strong> of Ahold Delhaize is the international nature of its business activities. In the individual countries, the company pursues a multi-brand approach for the various local supermarket chains. Almost two thirds of sales come from the <strong>US business<\/strong>The rest comes from Europe, with the Netherlands alone accounting for around 20% of sales. The other countries are Belgium, Luxembourg, Romania, the Czech Republic, Serbia and Greece. In Indonesia (Super Indo) and Portugal (Pingo Doce), Ahold Delhaize manages the business activities as <strong>Joint venture<\/strong> with external partners.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"670\" height=\"262\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Verteilung-Umsaetze-Ahold-Delhaize.png\" alt=\"Table with net sales and fixed assets for 2021 and 2022 by geographical area: Netherlands, United States, Rest of the world, Ahold Delhaize Group.\" class=\"wp-image-52081\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Verteilung-Umsaetze-Ahold-Delhaize.png 670w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Verteilung-Umsaetze-Ahold-Delhaize-300x117.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Geographische-Verteilung-Umsaetze-Ahold-Delhaize-18x7.png 18w\" sizes=\"auto, (max-width: 670px) 100vw, 670px\" \/><figcaption class=\"wp-element-caption\"><em><em>Geographical distribution of Ahold Delhaize sales (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/vy4neu1n\/ar-2022-ahold-delhaize-interactive-final.pdf?t=638143108570530000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2022, p. 202<\/em><\/a><em>)<\/em> <\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In recent years, the management has concentrated on the <strong>Corporate strategy<\/strong> on the transformation of the product portfolio and the underlying servicing. On the basis of <strong>four strategic priorities<\/strong> Ahold Delhaize is focusing on the expansion of its e-commerce business, the expansion of its range of high-quality own brands, high employee satisfaction and efficient, cost-optimized processing (operations).<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1307\" height=\"927\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Strategische-Prioritaeten-Ahold-Delhaize.png\" alt=\"A presentation slide entitled &quot;Our strategic priorities&quot; outlines four growth drivers: omnichannel growth, healthy and sustainable offerings, talent development and operational excellence.\" class=\"wp-image-52087\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Strategische-Prioritaeten-Ahold-Delhaize.png 1307w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Strategische-Prioritaeten-Ahold-Delhaize-300x213.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Strategische-Prioritaeten-Ahold-Delhaize-1024x726.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Strategische-Prioritaeten-Ahold-Delhaize-768x545.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Strategische-Prioritaeten-Ahold-Delhaize-18x12.png 18w\" sizes=\"auto, (max-width: 1307px) 100vw, 1307px\" \/><figcaption class=\"wp-element-caption\"><em><em>The strategic priorities of Ahold Delhaize (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/vy4neu1n\/ar-2022-ahold-delhaize-interactive-final.pdf?t=638143108570530000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2022, p. 30<\/em><\/a><em>)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The implementation of measures to promote the <strong>Digitization<\/strong> in online sales and e-commerce is reflected in the successive growth in the share of total sales over the years. In the USA in particular, measures such as the expansion of click &amp; collect and pick-up locations, the reduction of delivery fees and minimum order quantities as well as a customer loyalty program with enhanced benefits are beginning to have a positive impact.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"655\" height=\"605\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize.png\" alt=\"Bar and line chart illustrating the increase in net online consumer sales (in billions of euros) from 2018 to 2022 and the contribution to Ahold Delhaize&#039;s net sales, along with percentages showing the penetration of online grocery.\" class=\"wp-image-52075\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize.png 655w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize-300x277.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize-13x12.png 13w\" sizes=\"auto, (max-width: 655px) 100vw, 655px\" \/><figcaption class=\"wp-element-caption\"><em><em>The development of Ahold Delhaize's online business (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/vy4neu1n\/ar-2022-ahold-delhaize-interactive-final.pdf?t=638143108570530000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Annual Report 2022, p. 61<\/em><\/a><em>)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The food group's digital agenda also includes the long-term development of so-called \"<strong>complementary revenue streams<\/strong>\". This refers to those fields of activity <a href=\"https:\/\/progressivegrocer.com\/exclusive-how-ahold-delhaize-usa-hit-ground-running-retail-media\" rel=\"nofollow noopener\" target=\"_blank\">away from the classic retail business<\/a> which are expected to emerge as worthwhile investments and expand the base of revenue drivers. The stated strategic goal is<strong> one billion euros in additional revenue<\/strong> <strong>by the year 2025<\/strong> to achieve.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A minority stake was recently acquired in the Belgian company specializing in digital advertising <a href=\"https:\/\/www.aholddelhaize.com\/news\/ahold-delhaize-acquires-minority-stake-in-adtech-company-adhese-to-drive-development-of-digital-advertising-opportunities\/\" rel=\"nofollow noopener\" target=\"_blank\">Tech company Adhese<\/a> acquired. It is hoped that the integration of <strong>Adhesive solutions<\/strong> to offer its Business-2-Business partners a broader range of services and thus strengthen customer loyalty.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A key component of Ahold Delhaize's growth strategy are <strong>Acquisitions of companies<\/strong>. In addition to the positive effects on the business figures, this inorganic growth also serves to strengthen the company's competitive position by acquiring competitors. On October 30, 2023, Ahold Delhaize announced that it had reached an agreement with the previous owner on the <strong>Full acquisition of the food retailer <\/strong><a href=\"https:\/\/www.aholddelhaize.com\/news\/ahold-delhaize-announces-the-acquisition-of-profi-rom-food-srl-a-leading-grocery-retailer-in-romania\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Profi Rom Food SRL (Profi)<\/strong><\/a> agreed. Profi is a leading traditional food retailer in the <strong>Romania<\/strong> and operates 1,654 stores there. The takeover doubles the size of Ahold Delhaize, which operates in Romania under the<strong> Mega Image<\/strong> and has more than 969 stores, mainly in urban areas.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1305\" height=\"716\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Rumaenien-Expansion-Profi-Ahold-Delhaize.png\" alt=\"Ahold Delhaize announces its expansion in Romania with key highlights on Profi&#039;s operations, financials and growth strategies. A map of the store locations and a picture of a Profi store are displayed.\" class=\"wp-image-52086\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Rumaenien-Expansion-Profi-Ahold-Delhaize.png 1305w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Rumaenien-Expansion-Profi-Ahold-Delhaize-300x165.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Rumaenien-Expansion-Profi-Ahold-Delhaize-1024x562.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Rumaenien-Expansion-Profi-Ahold-Delhaize-768x421.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Rumaenien-Expansion-Profi-Ahold-Delhaize-18x10.png 18w\" sizes=\"auto, (max-width: 1305px) 100vw, 1305px\" \/><figcaption class=\"wp-element-caption\"><em><em>Expansion through inorganic growth in Romania (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/ou5jor02\/ad_q3_2023_final.pdf?t=638350265948470000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Q3 2023 Results p. 8<\/em><\/a><em>)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The flip side of continuous <strong>Portfolio optimization<\/strong> are disposals of parts of the existing business. In addition to the surprising <a href=\"https:\/\/www.aholddelhaize.com\/news\/ahold-delhaize-usa-to-sell-freshdirect-to-getir\/\" rel=\"nofollow noopener\" target=\"_blank\">Sale of FreshDirect<\/a>the online grocery retailer was only acquired at the beginning of 2021, the Group announced that all its supermarkets in <strong>Belgium<\/strong> in future <strong>Independently operated Delhaize stores<\/strong> to convert. According to management, this is due to the highly competitive Belgian retail market.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"564\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Divesture-Delhaize-Ahold-Delhaize-1024x564.png\" alt=\"Ahold Delhaize&#039;s transformation plan: 167 stores have been converted, with 39 more to follow. The benefits include 1,000 new products, a partnership with RangeMe and a Little Lions campaign with 1,000 bananas as a prize.\" class=\"wp-image-52071\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Divesture-Delhaize-Ahold-Delhaize-1024x564.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Divesture-Delhaize-Ahold-Delhaize-300x165.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Divesture-Delhaize-Ahold-Delhaize-768x423.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Divesture-Delhaize-Ahold-Delhaize-18x10.png 18w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Divesture-Delhaize-Ahold-Delhaize.png 1301w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Delhaize in the midst of portfolio transformation (source: <\/em><a href=\"https:\/\/media.aholddelhaize.com\/media\/ou5jor02\/ad_q3_2023_final.pdf?t=638350265948470000\" rel=\"nofollow noopener\" target=\"_blank\"><em>Q3 2023 Results p. 9<\/em><\/a><em>)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>As Chief Executive Officer and President of the Management Board <\/strong><a href=\"https:\/\/www.aholddelhaize.com\/about\/leadership\/frans-muller\/\" rel=\"nofollow noopener\" target=\"_blank\">Frans Muller<\/a><strong> the business of Ahold Delhaize. Born in the Netherlands, he was largely responsible for the organizational merger of Ahold and Delhaize before his appointment as CEO in 2018.<\/strong><strong><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the <strong>ownership structure<\/strong> of Ahold Delhaize, the extremely high proportion of institutional investors is striking. This group is usually made up of the \"usual suspects\" of asset managers.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"739\" height=\"480\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Eigentuemerstruktur.png\" alt=\"The top investors in Alphabet Inc. are listed in a table. It shows the value of the shares held, the percentage of outstanding shares held and the number of shares held for each investor.\" class=\"wp-image-52076\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Eigentuemerstruktur.png 739w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Eigentuemerstruktur-300x195.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Eigentuemerstruktur-18x12.png 18w\" sizes=\"auto, (max-width: 739px) 100vw, 739px\" \/><figcaption class=\"wp-element-caption\"><em>Ownership structure of Ahold Delhaize (Source:<\/em> <em>tikr.com)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Industry profile and competitive situation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The characteristics of Ahold Delhaize's business model make the comparison with listed competitors quite simple, as the retail sector is generally characterized by intense competition. The individual parameters for each company, such as the degree of internationalization or the product portfolio, should be considered in more detail as part of the qualitative company analysis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Let's get an overview thanks to the following comparison.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Due to the high US share of total sales, I opted for the two competitors in an initial comparison <strong>Walmart <\/strong>and <strong>Kroger<\/strong>. Whether this list should now be extended to include other industry giants such as Target, Carrefour etc. is a matter for each investor to decide in a more detailed industry analysis.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"983\" height=\"586\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Wettbewerbsvergleich-Ahold-Walmart-Kroger.png\" alt=\"A table comparing the financial data of Ahold Delhaize, Walmart and Kroger as of June 30, 2024, including market capitalization, earnings growth, dividend yield and others, with values in USD.\" class=\"wp-image-52090\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Wettbewerbsvergleich-Ahold-Walmart-Kroger.png 983w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Wettbewerbsvergleich-Ahold-Walmart-Kroger-300x179.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Wettbewerbsvergleich-Ahold-Walmart-Kroger-768x458.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Wettbewerbsvergleich-Ahold-Walmart-Kroger-18x12.png 18w\" sizes=\"auto, (max-width: 983px) 100vw, 983px\" \/><figcaption class=\"wp-element-caption\"><em>Competitive comparison of Ahold Delhaize with Walmart and Kroger (Source: own presentation)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Notes on the values contained in the table:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Green or red coloring of the figures indicates growth or decline compared to the previous year<\/li>\n\n\n\n<li>All values are stated in US dollars<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\">The financial situation of Ahold Delhaize<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">After gaining an overview of the industry in general and taking a closer look at the company, management and competition as relevant factors, we take a look at Ahold Delhaize's balance sheet and the key financial figures derived from it. The focus here is on the following aspects <strong>Growth, profitability<\/strong> and <strong>Financing<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The first step in analyzing the financial situation is to look at the development of sales, profits and earnings. <a href=\"https:\/\/www.captrader.com\/en\/glossary\/free-cash-flow\/\">Free Cash Flow<\/a> to. I have already discussed the internal distribution of sales across segments, product categories and regions in the chapter on the business model above. On average, the Top Line has grown by 8.2 % in the last five years.<strong> percent p.a.<\/strong> an.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1852\" height=\"414\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold.png\" alt=\"Line chart showing the development of sales and margin from Q1 2020 to Q4 2023. Turnover reached \u20ac 925,767,183 in the 2nd quarter of 2022. The chart shows the financial development in millions of euros.\" class=\"wp-image-52089\" style=\"object-fit:cover\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold.png 1852w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold-300x67.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold-1024x229.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold-768x172.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold-1536x343.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Umsatzentwicklung-Ahold-18x4.png 18w\" sizes=\"auto, (max-width: 1852px) 100vw, 1852px\" \/><figcaption class=\"wp-element-caption\"><em><em>Development of Ahold Delhaize's turnover (source: Aktienfinder)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At <strong><a href=\"https:\/\/www.captrader.com\/en\/glossary\/earnings-per-stock\/\">Earnings per share<\/a><\/strong> we have seen a continuous upward trend since the merger of Ahold and Delhaize. If we look at the past financial year 2022, the <strong>Adjusted earnings per share<\/strong> at <strong>16.4 percent<\/strong> (EUR 2.55 vs. 2.19). In the past financial year, Ahold Delhaize generated a profit of <strong>Net profit<\/strong> from <strong>EUR 2.56 billion<\/strong> (2021: EUR 2.25 billion).<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1854\" height=\"412\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold.png\" alt=\"A financial chart showing profit (green), operating cash flows (beige) and dividends (gray) for RenteExpected from 2011 to 2022. The data in the tooltip shows for 31.12.2022: profit EUR 12.00, cash flow EUR 25.59.\" class=\"wp-image-52083\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold.png 1854w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold-300x67.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold-1024x228.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold-768x171.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold-1536x341.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Gewinnentwicklung-Ahold-18x4.png 18w\" sizes=\"auto, (max-width: 1854px) 100vw, 1854px\" \/><figcaption class=\"wp-element-caption\"><em><em>Development of Ahold Delhaize's earnings per share (source: Aktienfinder)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The amount available to the company <strong>Free Cash Flow<\/strong> can be used to repay debt, expand via company acquisitions, pay out (increasing) dividends or buy back shares. In absolute figures - which I primarily like to use - the picture of operating and free cash flow as well as capital investments for the period 2017 to 2023 is as follows:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1556\" height=\"413\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize.png\" alt=\"The bar chart shows the cash flow from operating activities, capital expenditure and free cash flow of Koninklijke Ahold Delhaize N.V. for eight periods, with the values fluctuating between the categories.\" class=\"wp-image-52079\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize.png 1556w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize-300x80.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize-1024x272.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize-768x204.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize-1536x408.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Free-Cash-Flow-Entwicklung-Ahold-Delhaize-18x5.png 18w\" sizes=\"auto, (max-width: 1556px) 100vw, 1556px\" \/><figcaption class=\"wp-element-caption\"><em><em>Development of Ahold Delhaize's free cash flow (source: tikr.com)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A look at the <strong>Debt situation<\/strong> tells us that, based on the last financial year, Ahold Delhaize has a share of interest-bearing financial liabilities of EUR 17.6 bn, which in turn is offset by cash and cash equivalents and securities totaling EUR 3.2 bn. If we now divide the remaining net debt of EUR 14.4 billion by the most recently generated EBITDA of EUR 5.7 billion, we arrive at a ratio of 2.5, which is below the critical threshold of 3 (although this depends on the sector).<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1560\" height=\"407\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize.png\" alt=\"A line chart showing the net debt and EBITDA of Koninklijke Ahold Delhaize NV (AD) from 3.1.17 to 1.1.20. Net debt increases significantly, while EBITDA increases slightly over the same period.\" class=\"wp-image-52085\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize.png 1560w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize-300x78.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize-1024x267.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize-768x200.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize-1536x401.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Nettoschulden-EBITDA-Ahold-Delhaize-18x5.png 18w\" sizes=\"auto, (max-width: 1560px) 100vw, 1560px\" \/><figcaption class=\"wp-element-caption\"><em><em>Development of Ahold Delhaize's net debt and EBITDA (source: tikr.com)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">In connection with Ahold Delhaize's debt, it should be noted that Ahold Delhaize's bonds are denominated in both euros and US dollars, of which almost exactly two thirds are denominated in euros. In March 2023, Standard &amp; Poor's raised the <a href=\"https:\/\/ch.marketscreener.com\/kurs\/aktie\/AHOLD-DELHAIZE-N-V-29752127\/news\/S-P-erhoht-Rating-fur-Ahold-Delhaize-auf-BBB-Ausblick-stabil-43210486\/\" rel=\"nofollow noopener\" target=\"_blank\">Credit rating<\/a> of the company from <strong>Investment grade BBB to BBB+ <\/strong>with a stable outlook.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Finally, we look at the <strong>Profitability<\/strong> of Ahold Delhaize based on the development of gross, operating and net margins. The slump in the net margin in 2020, when the coronavirus pandemic broke out worldwide, is clearly visible.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1853\" height=\"412\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold.png\" alt=\"Line chart with sales and margin figures over time, with labels for &quot;Net sales&quot;, &quot;Op-profit margin&quot; and &quot;Net margin&quot; in millions of EUR. The data points range from January to October 2020.\" class=\"wp-image-52084\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold.png 1853w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold-300x67.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold-1024x228.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold-768x171.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold-1536x342.png 1536w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Margenentwicklung-Ahold-18x4.png 18w\" sizes=\"auto, (max-width: 1853px) 100vw, 1853px\" \/><figcaption class=\"wp-element-caption\"><em>Development of Ahold Delhaize's margins (source: Aktienfinder)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Opportunities &amp; risks&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Based on a solid balance sheet, Ahold Delhaize operates in a sector that is characterized by <strong>Stability and moderate growth<\/strong> in profits and cash flows. The consumer staples sector proves to be relatively robust, particularly in phases of increased volatility on the stock markets.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Despite intense competition in the retail sector, globally positioned companies such as Ahold Delhaize are creating adequate opportunities to offset the cost increases triggered by high inflation in the course of <strong>Price increases<\/strong> to the consumer. Another means is the price discounts that are typical for the industry, which can be passed on to consumers due to the <strong>Negotiating power<\/strong> are negotiable with suppliers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ahold Delhaize's corporate strategy focuses on <strong>Investments<\/strong> to expand the value chain and gradually transform the portfolio. In the United States, the subsidiary specializing in digitalization announced <a href=\"https:\/\/www.peapoddigitallabs.com\/\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Peapod Digital Labs<\/strong><\/a> new plans to establish a <a href=\"https:\/\/www.aholddelhaize.com\/news\/peapod-digital-labs-to-expand-partnerships-and-bring-media-network-for-ahold-delhaize-usa-brands-in-house-readying-for-growth\/\" rel=\"nofollow noopener\" target=\"_blank\">Own end-to-end media business<\/a> for the retail trade.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The retail sector has a high degree of <strong>Competition<\/strong> as customers' willingness to switch is primarily determined by price sensitivity. Attractive customer loyalty programs are an effective means of combating discounters and e-commerce providers, but they do not go far enough. <strong>at the expense of profitability<\/strong>. The geographical diversification of income streams across several regions entails a higher risk exposure on the downside and makes active risk management in conjunction with <strong>Currency fluctuations<\/strong> required.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One risk for Ahold Delhaize that cannot be ignored is the <strong>Susceptibility to supply chain disruptions<\/strong>. Any precautionary measures against future disruptions to global supply chains may have a negative impact on profitability due to the build-up of increased inventories.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Current valuation of the Ahold Delhaize share<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For the valuation of companies, I use the so-called <strong>Enterprise Value<\/strong> (EV) is used. In the case of a takeover, the EV indicates the amount required to purchase the assets required for operations and excludes the non-operating assets. I relate this key figure to the operating profitability (before taxes, interest and investments (CAPEX)), expressed by the <a href=\"https:\/\/www.captrader.com\/en\/glossary\/ebitda\/\">EBITDA<\/a>. The prevailing opinion is that a value of less than 10 signals a \"healthy valuation\" - as always with generic <strong>Rules of thumb <\/strong>the company-specific context must be considered in the analysis by the careful investor himself. In the case of <strong>Ahold Delhaize<\/strong> we have been seeing a valuation around the value of 8:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"1211\" height=\"380\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-EBITDA-Ahold.png\" alt=\"Line chart showing the EV\/EBITDA ratio for AGROFIRM from 2015 to 2024. The ratio fluctuates over the period, peaking in 2016 and gradually stabilizing at around 8.0 from 2021 onwards.\" class=\"wp-image-52077\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-EBITDA-Ahold.png 1211w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-EBITDA-Ahold-300x94.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-EBITDA-Ahold-1024x321.png 1024w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-EBITDA-Ahold-768x241.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-EBITDA-Ahold-18x6.png 18w\" sizes=\"auto, (max-width: 1211px) 100vw, 1211px\" \/><figcaption class=\"wp-element-caption\"><em><em>Enterprise Value to EBITDA of Ahold Delhaize (source: <\/em><a href=\"https:\/\/www.sahg6dtr.com\/TDW733\/R74QP\/\" rel=\"nofollow noopener\" target=\"_blank\"><em>Seeking Alpha<\/em><\/a><em>)<\/em><\/em>&nbsp;<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Another way of answering the valuation question is to compare the EV with the hardly manipulable <strong>Free Cash Flow (FCF)<\/strong> to be set. A high EV\/FCF multiple indicates a high valuation, while a low result signals a cheap valuation. From the chart below we can clearly see that Ahold Delhaize's shares are trading at a <strong>value of 5.9<\/strong> for the EV\/FCF ratio <strong>clear<\/strong> <strong>under the<\/strong> <strong>average level of 12<\/strong> of the last six years.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"964\" height=\"456\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-FCF-Ahold.png\" alt=\"A line chart showing the share price fluctuations from 2019 to 2024, with a high of over 17.52 and currently 5.90.\" class=\"wp-image-52078\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-FCF-Ahold.png 964w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-FCF-Ahold-300x142.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-FCF-Ahold-768x363.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/EV-FCF-Ahold-18x9.png 18w\" sizes=\"auto, (max-width: 964px) 100vw, 964px\" \/><figcaption class=\"wp-element-caption\"><em><em>Enterprise Value to Free Cash Flow of Ahold Delhaize (Source: aktien.guide)<\/em><\/em>&nbsp;<\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Maximum decrease<\/strong> in the last six years amounted to approx. <strong>23 percent<\/strong> just in the wake of the corona pandemic in 2020:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"991\" height=\"443\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Drawdown-Ahold.png\" alt=\"A line chart shows percentage changes over time from 2019 to 2024 with significant fluctuations. The chart shows a significant decrease around 2020, with the labels showing -6.29 % and -9.56 %.\" class=\"wp-image-52074\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Drawdown-Ahold.png 991w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Drawdown-Ahold-300x134.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Drawdown-Ahold-768x343.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Drawdown-Ahold-18x8.png 18w\" sizes=\"auto, (max-width: 991px) 100vw, 991px\" \/><figcaption class=\"wp-element-caption\"><em><em>Underwater chart of Ahold Delhaize (source: aktien.guide)<\/em><\/em><br><br>Over the past six years, an investment in Ahold Delhaize has yielded a return of<strong> Total Return<\/strong>, including dividends received, a <strong>Overall performance<\/strong> from <strong>70.3 percent <\/strong>for the investor:<\/figcaption><\/figure>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"1000\" height=\"453\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Total-Return-Ahold.png\" alt=\"Double line chart comparing two data sets from 2019 to 2024. One yellow line has a maximum value of around 800 %, the other blue line has a maximum value of around 500 %, which shows the fluctuations over time.\" class=\"wp-image-52088\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Total-Return-Ahold.png 1000w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Total-Return-Ahold-300x136.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Total-Return-Ahold-768x348.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Total-Return-Ahold-18x8.png 18w\" sizes=\"auto, (max-width: 1000px) 100vw, 1000px\" \/><figcaption class=\"wp-element-caption\"><em>Total return of Ahold Delhaize (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Capital allocation&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When looking at the dividend history, it is noticeable that Ahold Delhaize, as a half-yearly payer, distributes dividends as an interim dividend and a final dividend. This has been the case since 2019; before that, dividends were paid once a year, as is customary for continental European companies. As the final dividend is paid out in the first half of the year, this resulted in a total dividend payment of <strong>Discrepancy between financial year and calendar year<\/strong>which could be wrongly interpreted as a dividend cut.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This deviation for the <strong>The calculation of dividend growth is explained by the distinction <\/strong>between the financial year and the calendar year. In 2019, shareholders received the newly introduced interim dividend in addition to the annual dividend.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full clemens-bild\"><img loading=\"lazy\" decoding=\"async\" width=\"981\" height=\"400\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Dividendenhistorie-Ahold.png\" alt=\"Bar chart showing Ahold Delhaize&#039;s annual dividends (in \u20ac) from 2007 to 2028, with a steady increase from 0.18 in 2007 to an estimated 1.54 in 2028.\" class=\"wp-image-52073\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Dividendenhistorie-Ahold.png 981w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Dividendenhistorie-Ahold-300x122.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Dividendenhistorie-Ahold-768x313.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Dividendenhistorie-Ahold-18x7.png 18w\" sizes=\"auto, (max-width: 981px) 100vw, 981px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">At the current share price of EUR 27.71, this results in a <strong><a href=\"https:\/\/www.captrader.com\/en\/glossary\/dividend-yield\/\">Dividend yield<\/a> <\/strong>from <strong>3.97 percent<\/strong>. The <strong>Five-year dividend growth rate <\/strong>amounts to <strong>12.1 percent p.a.<\/strong>. or 8 percent p.a. over a ten-year period.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Ahold Delhaize is striving for <a href=\"https:\/\/dividendpost.us20.list-manage.com\/track\/click?u=f8b097c4210b0151934005444&amp;id=7c02bba06e&amp;e=9080a30a7a\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Dividend policy<\/a> the goal of achieving a dividend payout of <strong>40 to 50 percent<\/strong> of the underlying profit from operating activities. When determining the underlying payout ratio, any special effects such as amortization of goodwill, proceeds from the sale of assets or provisions for restructuring are deducted.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"655\" height=\"605\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize.png\" alt=\"Bar and line chart illustrating the increase in net online consumer sales (in billions of euros) from 2018 to 2022 and the contribution to Ahold Delhaize&#039;s net sales, along with percentages showing the penetration of online grocery.\" class=\"wp-image-52075\" style=\"width:840px;height:auto\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize.png 655w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize-300x277.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/E-Commerce-Ahold-Delhaize-13x12.png 13w\" sizes=\"auto, (max-width: 655px) 100vw, 655px\" \/><figcaption class=\"wp-element-caption\"><em><em>Dividend history of Ahold Delhaize (source: <\/em><a href=\"https:\/\/dividendpost.us20.list-manage.com\/track\/click?u=f8b097c4210b0151934005444&amp;id=73271d4f3b&amp;e=9080a30a7a\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><em>Annual Report 2022, p. 72<\/em><\/a><em>)<\/em><\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Now that we have looked at the track record, we can better understand why Ahold Delhaize has been distributing an increasing dividend per financial year since the merger of the two companies in 2016.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If we take the average value of the <strong>Free Cash Flow<\/strong> of the last three years as the basis for determining the <strong>Payout ratio <\/strong>we end up with a comfortable result of <strong>29.2 percent<\/strong> for the payout ratio.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Number of shares outstanding<\/strong> reduzierte sich um <strong>3.8 percent per year<\/strong> respectively <strong>22.9 percent<\/strong> accumulated over the past six years.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"969\" height=\"446\" src=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienrueckkaeufe-Ahold.png\" alt=\"Line chart showing a steady decline from 2019 to 2024, with a total decline of -22.12 %. Source of the chart is aktien.guide.\" class=\"wp-image-52070\" srcset=\"https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienrueckkaeufe-Ahold.png 969w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienrueckkaeufe-Ahold-300x138.png 300w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienrueckkaeufe-Ahold-768x353.png 768w, https:\/\/www.captrader.com\/wp-content\/uploads\/2024\/07\/Aktienrueckkaeufe-Ahold-18x8.png 18w\" sizes=\"auto, (max-width: 969px) 100vw, 969px\" \/><figcaption class=\"wp-element-caption\"><em>Share buybacks by Ahold Delhaize (source: aktien.guide)<\/em><\/figcaption><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">There is currently a <a href=\"https:\/\/www.aholddelhaize.com\/en\/investors\/quarterly-results\/q3-2023\/#investors-content\" rel=\"nofollow noopener\" target=\"_blank\"><strong>Aktienr\u00fcckkaufprogramm<\/strong><\/a>which grants the management a power of one billion euros for share buybacks. This should be completed by the end of next year.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Conclusion: Considerations for my decision to invest in Ahold Delhaize&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Ahold Delhaize's share price has been moving sideways for several months. It is a good 15 percent short of its mid-2023 high. Fierce competition on price remains a constant challenge in the retail sector. Organic growth in bricks-and-mortar retail also has its hands tied to a certain extent, as basic consumption is considered a saturated market in industrialized countries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For long-term investors looking to acquire quality companies at fair valuations, I consider the current price level of Ahold Delhaize shares to be an attractive opportunity. The management recognized the signs of the times early on and is investing in the expansion of earnings streams. The acquisitions of start-ups such as Adhese or partnerships with third-party companies are part of a gradual portfolio transformation in which the company is also withdrawing from lower-growth markets such as Belgium.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n <div class=\"brlbs-cmpnt-container brlbs-cmpnt-content-blocker brlbs-cmpnt-with-individual-styles\" data-borlabs-cookie-content-blocker-id=\"youtube-content-blocker\" data-borlabs-cookie-content=\"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\"><div class=\"brlbs-cmpnt-cb-preset-c brlbs-cmpnt-cb-youtube\"> <div class=\"brlbs-cmpnt-cb-thumbnail\" style=\"background-image: url('https:\/\/www.captrader.com\/wp-content\/uploads\/borlabs-cookie\/1\/yt_2k2_A6L4Tc0_hqdefault.jpg')\"><\/div> <div class=\"brlbs-cmpnt-cb-main\"> <div class=\"brlbs-cmpnt-cb-play-button\"><\/div> <div class=\"brlbs-cmpnt-cb-content\"> <p class=\"brlbs-cmpnt-cb-description\">You are currently viewing placeholder content from <strong>Youtube<\/strong>. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.<\/p> <a class=\"brlbs-cmpnt-cb-provider-toggle\" href=\"#\" data-borlabs-cookie-show-provider-information role=\"button\">More Information<\/a> <\/div> <div class=\"brlbs-cmpnt-cb-buttons\"> <a class=\"brlbs-cmpnt-cb-btn\" href=\"#\" data-borlabs-cookie-unblock role=\"button\">Unblock content<\/a> <a class=\"brlbs-cmpnt-cb-btn\" href=\"#\" data-borlabs-cookie-accept-service role=\"button\" style=\"display: inherit\">Accept required service and unblock content<\/a> <\/div> <\/div> <\/div><\/div>\n<\/div><figcaption class=\"wp-element-caption\">Rio Tinto &amp; Ahold Delhaize | Dividend stocks in the test | Dividend investor Clemens Faustenhammer<\/figcaption><\/figure>","protected":false},"excerpt":{"rendered":"<p>Unternehmensprofil und Gesch\u00e4ftsmodell: Wer ist und was macht die Ahold Delhaize Die Verschmelzung der niederl\u00e4ndischen Koninklijke Ahold mit der damals kleineren Delhaize Group markierte im Jahr 2016 die Geburtsstunde der \u201emodernen Geschichte\u201c dieses Branchenschwergewichts. Doch warum wirbt das Konglomerat aus den Benelux-Staaten mit einer seit \u00fcber 150 Jahren andauernden Geschichte auf der offiziellen Website? Das [&hellip;]<\/p>\n","protected":false},"author":45,"featured_media":47388,"template":"","analysen-kategorie":[1156,850],"class_list":["post-52068","analyse","type-analyse","status-publish","has-post-thumbnail","hentry","analysen-kategorie-ahold-delhaize","analysen-kategorie-dividenden-depot"],"acf":{"blog_summary":"","blog_faq_schalter":"nein","faq_uberschrift":"","blog_faq_loop":null},"_links":{"self":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse\/52068","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analyse"}],"about":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/types\/analyse"}],"author":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/users\/45"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media\/47388"}],"wp:attachment":[{"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/media?parent=52068"}],"wp:term":[{"taxonomy":"analysen-kategorie","embeddable":true,"href":"https:\/\/www.captrader.com\/en\/wp-json\/wp\/v2\/analysen-kategorie?post=52068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}