Ahold Delhaize upbeat on Q4 outlook, shares boosted by US elections

(Reuters) – Supermarket group Ahold Delhaize sees improving momentum in the busy end-of-year holiday quarter, it said on Wednesday, after its third-quarter results beat market expectations aided by faster recovery in Europe.

Ahold’s shares rose as much as 8% to 33.30 euros per share, their highest intraday price ever, boosted by a potential Donald Trump victory in the U.S. presidential election.

Bryan Garnier analyst Clément Genelot noted Trump was expected to leave the corporate tax unchanged, which he said was a key element in Ahold Delhaize’s equity story.

The rally was also supported by strong U.S. dollar on the back of the elections, as more than 60% of Ahold Delhaize’s cash flows come from the United States, ABN Amro analyst Robert Van Jos said.

The Dutch group operates the Stop & Shop, Giant, Food Lion and Hannaford chains in the U.S.

Ahold Delhaize expects its fourth-quarter margin profile in the U.S. to be at least at the level of the previous quarter, finance chief Jolanda Poots-Bijl said in an analyst call.

The group is targeting 1 billion euros in cost reductions this year to offset pressure on profit margins as food price inflation falls and consumers curb their spending.

Asked about the outcome of the U.S. election, CEO Frans Muller told Reuters he was confident in the resilience of the group.

Since the 70s we have the footprint we have now and irrespective of the government and the White House President, we have been very well hosted in the U.S.,” he said.

The owner of Albert Heijn and Delhaize chains expects to also improve its performance in Europe in the fourth quarter, while U.S. growth should be supported by price investments and customer value propositions.

That comes on the back of positive volume trends already seen in October, Muller said.

Ahold also announced a 1-billion-euro share buyback for 2025 and reiterated its outlook for the full year 2024.

($1 = 0.9292 euros)

(Reporting by Alban Kacher in Gdansk; editing by Milla Nissi)