Published by Global Banking and Finance Review
Posted on November 5, 2025
By Mateusz Rabiega
(Reuters) -Dutch supermarket group Ahold Delhaize on Wednesday confirmed its guidance for 2025 and said it had not seen a material impact from the lapse in U.S. food aid for low-income shoppers in its biggest region by sales.
The delay in the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps, threatens 42 million recipients in the U.S. and may cause an $8 billion revenue gap for grocers while impacting both suppliers and workers.
"SNAP is on a rather low level of penetration in our sales number, it's on one of the lowest levels since COVID," finance chief Jolanda Poots-Bijl told Reuters, adding that Ahold was closely monitoring the situation.
Ahold, which had seen record-high sales in the first quarter of 2025, reiterated its full-year targets, which include underlying operating margin of around 4% and at least 2.2 billion euros of free cash flow.
The operator of the Food Lion chain in the U.S. also beat earnings forecasts in the third quarter and said it was planning to carry out a 1 billion euro ($1.2 billion) share buyback, starting at the beginning of 2026, sending its shares 1.6% higher in early trading in Amsterdam.
CONSUMER SENTIMENT
Although U.S. consumer sentiment remained steady in October despite concerns over the government shutdown, worries about the labour market and inflation persist among consumers.
Economists have pointed to declining confidence amid lower-income consumers, arguing that high-income households are the ones keeping the economy afloat through strong spending.
"Household budgets are under pressure on both sides of the ocean ... our customers are on the hunt for value", Poots-Bijl told Reuters.
($1 = 0.8575 euros)
(Reporting by Mateusz Rabiega in Gdansk, editing by Milla Nissi-Prussak)
