Group highlights

Group net sales were €21.6 billion, an increase of 6.3% at constant exchange rates, and up 9.4% at actual exchange rates. Group net sales were driven by comparable sales growth excluding gasoline of 6.2%, and, to a lesser extent, by foreign currency translation benefits. Weather and calendar shifts, and, to a lesser extent, strikes in Belgium, had a negative net impact on Q1 Group comparable sales of approximately 1.8 percentage points.

In Q1, Group net consumer online sales increased by 5.9% at constant exchange rates, led by robust performance in the U.S., which increased 11.9% compared to the prior year. Net consumer online sales increased 2.5% in Europe. Group online sales in grocery increased 9.7% at constant exchange rates.

In Q1, Group underlying operating margin was 4.0%, a decrease of 0.2 percentage points at constant exchange rates. Strong underlying U.S. margin and decreased non-cash service charge for the Dutch employee pension plan, resulting from higher discount rates in the Netherlands, partially offset margin declines in Europe and a reduction in Global Support Office insurance gains. Excluding the impacts of inflated energy costs and strikes, underlying operating margin modestly exceeded the prior year. In Q1, Group IFRS-reported operating income was €822 million, representing an IFRS-reported operating margin of 3.8%, mainly impacted by restructuring and related costs from the Accelerate initiative and Belgium.

Underlying income from continuing operations was €593 million, an increase of 6.9% in the quarter at actual rates. Ahold Delhaize's IFRS-reported net income in the quarter was €561 million. Diluted EPS was €0.57 and diluted underlying EPS was €0.61, up 10.5% at actual currency rates compared to last year's results. In the quarter, Ahold Delhaize purchased 7.2 million own shares for €205 million.

U.S. highlights

U.S. net sales were €13.5 billion, an increase of 5.7% at constant exchange rates and up 10.5% at actual exchange rates. U.S. comparable sales excluding gasoline increased by 6.2%. Excluding weather and calendar shifts, U.S. comparable sales would have been 8.1%, continuing to highlight the momentum at all of our U.S. brands. Food Lion continues to lead brand performance, delivering its 42nd consecutive quarter of positive sales growth.

In Q1, online sales in the segment were up 11.9% in constant currency driven primarily by over 20% growth at Food Lion and The GIANT Company, which both opened four new click-and-collect locations during the quarter.

Underlying operating margin in the U.S. was 4.8%, up 0.4 percentage points at constant exchange rates from the prior year period, building on the strong performance in the prior quarter and higher on-shelf availability resulting from improving supply chains. In Q1, U.S. IFRS-reported operating margin was 4.7%.

Europe highlights

European net sales were €8.1 billion, an increase of 7.2% at constant exchange rates and 7.5% at actual exchange rates. Europe's comparable sales increased by 6.1%.

On March 7, Ahold Delhaize's Belgian brand, Delhaize, announced its intention to transform all of its integrated supermarkets in Belgium into independently operated Delhaize stores to strengthen its position in the country's competitive retail market. Ahold Delhaize supports the intention to transform to one aligned operating model, which will allow the brand to better serve customers in the long term. By having all stores operated by local entrepreneurs in the future, Delhaize will have a better opportunity to respond to local conditions. Following the announcement, Delhaize Belgium has been impacted by strikes. Excluding the impact of strikes, Europe's comparable sales increased by 7.7%.

In Q1, net consumer online sales increased by 2.5%. Online sales in grocery increased by 4.6%. At bol.com, gross merchandise value ("GMV") was €1.3 billion, a sequential growth rate improvement compared to Q4 2022. Bol.com's GMV sales from its nearly 52,000 third-party sellers increased by 3.7% in Q1, and represented 65% of sales.

Underlying operating margin in Europe was 2.8% in Q1, down 0.7 percentage points from the prior year mainly due to the impact of escalating energy costs and strikes in Belgium. Excluding these impacts, underlying operating margin in Europe modestly exceeded the prior year. Additionally, the non-cash service charge for the Netherlands employee pension plan decreased €17 million as a result of higher discount rates in the Netherlands. Europe's Q1 IFRS-reported operating margin was 2.5%, mainly impacted by restructuring charges of €15 million primarily related to Belgium.