Ahold Delhaize presents Better Together strategy, gives update on integration and financial framework
(Thomson Reuters ONE) -
Ahold Delhaize presents Better Together strategy, gives update on integration
and financial framework
Ahold Delhaize, a leader in supermarkets and e-commerce with strong local brands
in 11 countries, is holding a Capital Markets Day for institutional investors
and analysts today in London, United Kingdom, at 9am GMT (10am CET). Highlights
include:
* Better Together strategy captures benefits of international scale to build
great local brands
* Confirms rationale of Ahold Delhaize merger, sets direction to realize full
potential
* Combined company in full-execution mode following merger completion on July
23, 2016
* Integration is on track with clear visibility to generating ?500 million in
net synergies in 2019
* Operating model committed to grow leading supermarket brands while remaining
rigorously focused on cost discipline
* New target to double net consumer online sales by 2020 from expected 2016
level of ?2.3 billion
* Better Together strategy reflects full commitment to Sustainable Retailing
* Continued focus on strong free cash flow with ?1.6 billion expected for
2017
* Dividend pay-out ratio of 40-50% of pro-forma underlying income from
continuing operations
* Launch of ?1 billion share buyback program in 2017
Zaandam, the Netherlands, December 7, 2016 - Ahold Delhaize today presents its
Better Together strategy, its plan for fully capturing the benefits of
international scale combining with great local brands and associate expertise.
Building on a solid financial foundation and strong track record of cost
discipline, Ahold Delhaize will drive profitable growth in supermarkets,
eCommerce, and smaller formats.
The company will also provide an update on synergies and its financial framework
following completion of the merger between Ahold and Delhaize Group in July
2016.
Dick Boer, CEO of Ahold Delhaize, said: "We are excited to share our Better
Together strategy, which builds naturally on our combined strong performance as
well as the strong foundations of the local brands in our group. Guided by this
common compass, we will continue to improve our family of brands to be a better
place to shop, a better place to work, and a better neighbor, every day. We are
meeting the needs of customers today and anticipating those of tomorrow, by
providing more value, quality and convenience.
"Our integration is on track and we have a clear plan to deliver ?500 million in
net synergies in 2019. We are convinced more than ever that our merger is the
right combination at the right time. Driven by our purpose "Together, we build
great local brands, bringing fresh inspiration every day," we will continue to
shape a stronger future for Ahold Delhaize, providing fuel for the brands to
grow to the benefit of customers, associates, communities and shareholders."
Better Together: our strategic framework
Our Better Together strategy will enable us to drive profitable growth and
deliver the benefits of international scale, combining great local brands and
local associate experience while driving savings and investments to benefit
customers, and create value for shareholders.
It encapsulates our purpose, with clear promises to customers, associates and
communities and with values that drive our actions. It is completed by the
sustainable business model, with three key pillars:
* Save for our customers: Buy better, Operate smarter, Waste less
* Invest in our customer proposition: Affordable for all, Best own brands,
Fresher & Healthier, Most local & personal service
* Funding growth in key channels: supermarkets, eCommerce and smaller formats
Growing our largest channel: supermarkets
At our Capital Markets Day, Ahold Delhaize management will give an update on
local programs that continue to drive sales and improve price, assortment and
service for the customers of our great local brands.
Transformation Plan Belgium
Delhaize Belgium is on track to deliver ?80 million in savings in 2018 through
the Transformation Plan. A New Store Organization was deployed to 128 company
operated stores, and now aims to drive sales through a clear commercial
strategy.
Food Lion - Easy, Fresh and Affordable. you can count on Food Lion every day
Food Lion continues to win with its Easy, Fresh and Affordable strategy and will
roll it out to 160 additional stores in 2017, bringing the total to 540, or 55%
of total sales at the brand.
Ahold USA - Heading Northeast
Ahold USA is building momentum with its "Heading Northeast" strategy as its
investments in pricing, service and quality pay off with gains in customer
perception and sales volume increases.
Growing in new channels: doubling eCommerce sales by the end of 2020
Ahold Delhaize confirms its commitment to its eCommerce businesses by meeting
the growing customer demand for online grocery solutions and by building the
leading eCommerce platform in the Netherlands and Belgium. Ahold Delhaize today
presents an ambition to double net online consumer sales by 2020.
Sustainable Retailing
Our success as a business is closely tied to how well we meet the needs of
multiple stakeholders. Ahold Delhaize is prioritizing three areas where we can
have the most impact on the lives of our stakeholders and, in doing so, become a
stronger, more sustainable company: promoting healthier eating, reducing food
waste, and creating healthy and inclusive workplaces for the 375,000 associates
at our brands.
Therefore, all brands will set clear targets in the areas of product integrity,
sourcing, tackling climate change, and taking care of our people. Ahold Delhaize
will provide more details in 2017.
Clear roadmap to delivering ?500 million in net synergies
The integration is on track and has been completed at our Global Support Office
and EU Support Office.
Ahold Delhaize remains committed to deliver net synergies of ?500 million in
2019, incremental to operating income and confirms integration costs of ?350
million for 2015-2019.
Financial framework
Continuing to exercise rigorous cost discipline, the company will further
improve its cost base to fund growth and invest in price, quality and service
for customers.
Ahold Delhaize will also continue to deliver strong cash flow generation,
fueling free cash flow with synergies and working capital improvements. In
2017, free cash flow is expected to be around ?1.6 billion.
The company is committed to a balanced approach between funding growth in key
channels, managing the debt portfolio and returning cash to shareholders. It
targets a 40-50% dividend pay-out ratio based on pro-forma underlying income
from continuing operations. In addition, in 2017 Ahold Delhaize will return ?1
billion through a share buyback program.
Further information
All presentations for the Ahold Delhaize Capital Markets Day will be available
on www.aholddelhaize.com from 9am GMT (10am CET). A webcast (audio) is available
from that time, also on www.aholddelhaize.com.
161207_AD2016CMD_press release:
http://hugin.info/130711/R/2062307/773708.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Ahold Delhaize via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 07.12.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 511328
Anzahl Zeichen: 8311
contact information:
Town:
Amsterdam
Kategorie:
Business News
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