Ahold Delhaize has reported a strong fourth quarter and full year performance, with solid sales growth and margins in the year that the Belgium and Netherlands-based retailers merged.
'2016 was not only a year where we brought together two strong food retailers,' said Dick Boer, CEO of Ahold Delhaize. 'It was also a year in which our great local brands drove solid performance, serving our customers both in stores and online.
'I am very pleased with the financial results in the fourth quarter with volume growth and strong margins, while making good progress implementing our Better Together strategy which we announced in December. Our teams are working hard on the integration, leveraging best practices and realising synergy targets.
The group saw pro forma fourth-quarter net sales of €15.5bn, up 2.8 per cent at constant exchange rates (adjusted for week 53 in 2015), with a pro forma quarterly underlying operating margin of 3.9 per cent – driven by a particularly strong performance in the Netherlands and at Delhaize America.
'We are pleased to propose a dividend of €0.57 to our shareholders, an increase of 9.6 per cent compared to Ahold last year, representing a payout ratio of 48 per cent of pro forma underlying income from continuing operations.'
