After beating forecasts for the first quarter because of strong U.S. sales, Ahold Delhaize (AD.AS) CEO Frans Muller predicted Wednesday that food inflation in Europe would decline in the year’s second half.
In the second half, Muller predicted lower sunflower oil and egg prices.
The retailer, which earns more than half its revenues in the U.S., saw its underlying operating margin grow to 4.8% in the U.S. but fall to 2.8% in Europe due to rising energy costs and a Delhaize Belgium strike. In addition, Indonesia, the Czech Republic, Greece, Portugal, Romania, and Serbia have Ahold supermarkets.
U.S. internet sales rose 11.9% year-over-year, helping worldwide online sales rise 5.9%. In addition, Ahold claimed its loyalty programs attracted customers with personalized offers.
Operating income was 822 million euros, as expected.
Ahold, which owns Stop & Shop, Giant, Food Lion, Hannaford, and Albert Heijn in the U.S. and Albert Heijn in the Netherlands, reported quarterly revenues of 21.62 billion euros ($23.80 billion), above the company’s 21.5 billion euro expectations.
