The following is a summary of the Koninklijke Ahold Delhaize N.V. (ADRNY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Ahold Delhaize delivered robust financial performance in Q4 2023, overachieving all main objectives and sealing a record cost-saving of over €1.25 billion, representing a 29% hike from the previous year.
They experienced food inflation in the U.S in Q4 of 1.3%, which declined to 1.1% in January, demonstrating a rapid tapering of inflation.
The company plans to manage a lower inflation top line with higher costs through a robust cost-saving program exceeding €1 billion, targeting a 4% UOP margin for the year.
Business Progress:
Ahold Delhaize served more than 63 million customers weekly and enhanced its brand assortments, optimized its loyalty systems, and tackled customer interactions in a more clear and efficient manner across various omnichannel shopping experiences.
Over 10% of their store fleet was remodeled in 2023, with plans to increase the number of price favorites by 20% in 2024.
The affiliation process of 128 company-operated stores in Belgium is in progress, with 107 contracted and 44 converted to streamline the business model.
Volume growth is returning in some of the U.S. brands, supported by CPG partners.
The company aims for a 4% margin in their Belgium business, contributing to a 4%+ margin for Europe and more details are to be presented in May.
More details: KONINKLIJKE AHOLD DELHAIZE NV SPON ADR EACH REP 1 ORD SHS (POST SPLIT) IR
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