ZAANDAM, Netherlands — Ahold Delhaize on Thursday reported second quarter and half-year financial results for Ahold showing that the retailer’s operating income rose 8% to $400 million in the period.
In an appendix, it summarized second quarter results for Delhaize Group, characterizing the performance as “strong.”
Ahold Delhaize is the company created by the merger of Delhaize Group and Koninklijke Ahold N.V., a deal that closed July 24, after the end of both companies’ second quarter reporting periods.
The merger creates the fourth-largest food retailer in the United States by market share, behind Walmart, Kroger Co. and Albertsons/Safeway.
Ahold Delhaize is forecasting a boost to second half profit as synergies from the merger take hold.
“We have started our new chapter as Ahold Delhaize with good momentum, with these two strong sets of premerger results,” chief executive officer Dick Boer said in a statement. “Building on our solid financial foundation, common values and great local brands, we are driving ahead with full energy to deliver even more for customers and communities, associates, and shareholders. We look forward to continuing to shape Ahold Delhaize, with a strong commitment to delivering great food, value and innovations for customers across our 11 markets, both in stores and online.”
The tie-up is expected to give Ahold Delhaize greater buying clout and should produce more than $500 million in annual cost savings from combining their supplier networks and their advertising and promotions, as well as from leveraging scale in their in-house brands.
As part of the merger agreement, the company agreed to divest 86 stores in the United States. The company also expects to divest another 10 stores in the Richmond, Va., area.
The combined company has 6,500 stores around the world. More than half of its annual sales come from the United States, where it owns the Stop & Shop, Giant, Food Lion and Hannaford supermarket chains.