Q1 2026 Koninklijke Ahold Delhaize NV Earnings Call

May 6, 2026

Speaker #1: Of Ahold Delhaize. Please note that this call is being webcast and recorded. During this call, Ahold Delhaize anticipates making projections and forward-looking statements or statements other than statements of a historical facts may be forward-looking statements.

Operator: Of Ahold Delhaize. Please note that this call is being webcast and recorded. During this call, Ahold Delhaize anticipates making projections and forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict, and that may cause our actual results to differ materially from future results expressed or implied by such forward-looking statements. Therefore, you should not place undue reliance on any of these forward-looking statements. The introduction will be followed by a Q&A session. Any views expressed by those asking questions are not necessarily the views of Ahold Delhaize. At this time, I would like to hand the call over to JP O'Meara, Senior Vice President, Head of Investor Relations. Please go ahead, JP.

Speaker #1: Encouraging healthier and more sustainable shopping baskets, and working together with suppliers and farmers towards a more sustainable food system. Together, we inspire everyone to eat and live better.

Speaker #1: For a healthier future for people and planet. Good morning. We are Ahold Delhaize. We operate in nine countries on three continents. We have 17 brands and well over 9,400 stores.

Speaker #1: Forward-looking statements are subject to risks and certainties and other factors that are difficult to predict and that may cause our actual results to differ materially from future results expressed or implied by such forward-looking statements.

Speaker #1: Therefore, you should not place undue reliance on any of these forward-looking statements. The introduction will be followed by a Q&A session. Any views expressed by those asking questions are not necessarily the views Delhaize.

Speaker #1: And every day, 393,000 people work hard to serve over 72 million customers per week. You could say that we're a big company. And yet, we put all our efforts into being small.

Speaker #1: At this time, I would like to hand the call over to JP O'Meara, Senior Vice President, Head of Investor Relations. Please go ahead, JP.

Speaker #1: Because when you're small, you are a part of your local community. You can customize stores on a local level and when you're small, you can connect with the people you work with.

JP O'Meara: Thank you very much, Heidi, and good morning, everyone. I am delighted to welcome you today to our Q1 2026 results conference call. On today's call are Frans Muller, our President and CEO, and Jolanda Poots-Bijl, our CFO. After a brief presentation, we will open the call for questions. In case you haven't seen it, the earnings release and the accompanying presentation slides can be accessed through the investor section of our website, aholddelhaize.com, which also provides extra disclosure and details for your convenience. To ensure everyone has the opportunity to get their questions answered today, I ask that you initially limit yourself to 2 questions. If you have further questions, feel free to reenter the queue. To ensure ease of speaking, all growth rates mentioned in today's prepared remarks will be at constant exchange rates unless otherwise stated.

Speaker #2: Thank you very much, Heidi, and good morning, everyone. I'm delighted to welcome you today to our Q1 2026 results conference call. On today's call, our Franz Muller, our President and CEO, and Jolanda Poots, Biol, our CFO.

Speaker #1: Small. What does it mean? Small means that we take the best local innovations and share them across the world. From being the first to bring the barcode from the U.S.

Speaker #2: After a brief presentation, we will open the call for questions. In case you haven't seen it, the earnings release and the accompanying presentation slides can be accessed through the Investor section of our website, Ahold Delhaize.com, which also provides extra disclosure and details for your convenience.

Speaker #1: to the Netherlands in the '70s, and introducing AI solutions to predict shelf life and limit food waste, to being open for everyone and sharing values a passion for serving customers and a love for peanut butter, just not always with jelly.

Speaker #2: To ensure everyone has the opportunity to get their questions answered today, I ask that you initially limit yourself to two questions. If you have further questions, then feel free to re-enter the queue.

Speaker #1: Okay, let's continue. Small means understanding our responsibility to provide access to essential products. It's about realizing that everything that happens in society affects us, our stores, and our customers.

Speaker #2: To ensure ease of speaking, all growth rates mentioned in today's prepared remarks will be at constant exchange rates unless otherwise stated. And with that, I hand over to you, Franz.

Speaker #1: And that works both ways. With every small step we take, we make giant leaps. Helping customers to make better choices, by gradually reducing salt, sugar, and fat from products, encouraging healthier and more sustainable shopping baskets, and working together with suppliers and farmers towards a more sustainable food system.

JP O'Meara: With that, I'll hand over to you, Frans.

Speaker #3: Thank you very much, JP, and good morning, everyone. We had a solid start to the year. Our Q1 performance reflects the strength of the foundation we have built with our growing together strategy, focused on delivering value for customers, associates, and all our stakeholders, and this every day.

Frans Muller: Thank you very much, J.P., good morning, everyone. We had a solid start to the year. Our Q1 performance reflects the strength of the foundation we have built with our Growing Together strategy, focused on delivering value for customers, associates, and all our stakeholders, and this every day. This is underpinned by clear choices, investing in our customer value proposition, strengthening our portfolio, and expanding our footprint while maintaining discipline in how we allocate capital. We continue to operate in a dynamic and at times more demanding environment. Food inflation was more moderate in this quarter, with year-over-year deflation in several categories, which has been helpful to consumers. At the same time, geopolitical tensions, including the recent conflict in the Middle East, are contributing to uncertainty. Energy prices are elevated, putting further pressure on household budgets. This is not necessarily new for us.

Speaker #3: This is underpinned by clear choices: investing in our customer value proposition, strengthening our portfolio and expanding our footprint, while maintaining discipline in how we allocate capital.

Speaker #3: We continue to operate in a dynamic and, at times, more demanding environment. Food inflation was more moderate in this quarter, with year-over-year deflation in several categories.

Speaker #3: Which has been helpful to consumers. At the same time, geopolitical tensions including the recent conflict in the Middle East are contributing to uncertainty; energy prices are elevated, putting further pressure on household budgets.

Speaker #3: This is not necessarily new for us. We have managed, through similar conditions before, and we are applying those learnings today. For example, customer value remains at the heart of everything we do.

Frans Muller: We have managed through similar conditions before, and we are applying those learnings today. For example, customer value remains at the heart of everything we do. Across our brands, we continue to invest in price, in quality, and in relevance, whether through our own brands or fresh offering or the experience in our stores and digital platforms. In an environment like this, consistency builds trust, and trust drives share. Secondly, we remain disciplined in how we run the business. We focused on cost, on productivity, and on simplifying how we operate, but always with the flexibility to support our brands locally. We have strengthened our energy position by moving to longer term contracts and increasing the use of renewable energy sources. We are further embedding should-cost models to ensure cost increases from suppliers are proportional, transparent, and well-managed. Lastly, we continue to invest in the future.

Speaker #3: Across our brands, we continue to invest in price, in quality, and in relevance. Whether through our own brands or fresh offering, or the experience in our stores and digital platforms.

Speaker #3: In an environment like this, consistency builds trust. And trust drives share. Secondly, we remain disciplined in how we run the business. We focused on cost, on productivity, and on simplifying how we operate, but always with the flexibility to support our brands locally.

Speaker #3: We have strengthened our energy position by moving to longer-term contracts and increasing the use of renewable energy sources. And we are further embedding shoot-cost models to ensure cost increases from suppliers are proportional, transparent, and well-managed.

Speaker #3: And lastly, we continue to invest in the future. We are sharply focused on our growth model, combining scale, relevance, and execution. And whether in digital, in data, or in omnichannel capabilities, we are building a platform that allows us to serve customers in more relevant and more personal ways.

Frans Muller: We are sharply focused on our growth model, combining scale, relevance, and execution. Whether in digital, in data, or in omni-channel capabilities, we are building a platform that allows us to serve customers in more relevant and more personal ways. These factors gelling well together enable our strong financial performance and our ability to deliver consistent and attractive returns for our shareholders. Looking at the quarter, net sales and comparable sales excluding gasoline increased 2% at constant exchange rates. We delivered an underlying operating margin of 4%, and diluted underlying EPS increased 8.9%. When we launched our strategy Growing Together, I talked about quality. It's a defining characteristic of the culture of how we operate our company.

Speaker #3: These factors gelling well together enable our strong financial performance and our ability to deliver consistent and attractive returns for our shareholders. Looking at the quarter, net sales and comparable sales excluding gasoline, increased 2% at constant exchange rates.

Speaker #3: We delivered an underlying operating margin of 4%, and diluted underlying EPS increased 8.9%. When we launched our strategy together, when we launched our strategy growing together, I talked about quality.

Speaker #3: It's a defining characteristic of the culture of how we operate our company. The quality of our sales, the quality of our brands, the quality of our execution, and foremost, the quality of our people.

Frans Muller: The quality of our sales, the quality of our brands, the quality of our execution, and foremost, the quality of our people. That's the lens I would like to use as we look at our results today. Customers continue to navigate the environment carefully, making deliberate choices and seeking value. Our response is clear, strong, and consistent customer value. Across our US brands, excluding some technical and macro factors Jolanda will go through in more detail, our Q1 sales performance kept a similar pace to the trends we have seen last year. Inside this growth, we are enhancing own brand assortments, executing our second full year of on top price investments, and optimizing personalized offerings.

Speaker #3: And that's the lens I would like to use as we look at our results today. Customers continue to navigate the environment carefully, making deliberate choices and seeking value.

Speaker #3: Our responses are clear, strong, consistent, customer value. Across our US brands, excluding some technical and macro factors, Jolanda will go through in more detail, our first quarter sales performance kept a similar pace to the trends we have seen last year.

Speaker #3: And inside this growth, we are enhancing own brand assortments, executing our second full year of on-top price investments, and optimizing personalized offerings. Own brands continue to outpace the rest of the store in both sales and volume, supporting price perception and margin quality.

Frans Muller: Own brands continue to outpace the rest of the store in both sales and volume, supporting price perception and margin quality. At the entry level, we are playing into the growing demand from customers who are looking for high quality products at affordable prices. Examples for the US includes Stop & Shop lowering everyday prices across key states, Hannaford introducing refreshed own brand packaging to improve navigation and value perception, and The Giant Company launching its Simply Low campaign. At Stop & Shop, Roger and the team are leveraging strong local knowledge. Volumes are trending positively. Online penetration is at record levels, and own brand growth is strong. Customer response to price investments remains encouraging, and NPS continues to reflect strong engagement by customers to the actions we are taking in the day-to-day quality of our execution.

Speaker #3: And at the entry level, we are playing into the growing demand from customers who are looking for high-quality products at affordable prices. Examples for the US include stop-and-shop, lowering everyday prices across key states.

Speaker #3: Hannaford introducing refreshed own brand packaging to improve navigation and value perception. And the giant company launching its Simply Low campaign. At stop-and-shop, Roger and the team are leveraging strong local knowledge.

Speaker #3: Volumes are trending positively. Online penetration is at record levels. And own brand growth is strong. Customer response to price investments remains encouraging. And NPS continues to reflect strong engagement by customers to the actions we are taking in the day-to-day quality of our execution.

Speaker #3: As we have now seen, several quarters of consistent improvement at stop-and-shop. We will accelerate our store remodel program and expand our price investment across the full fleet by the end of 2026.

Frans Muller: As we have now seen several quarters of consistent improvement at Stop & Shop, we will accelerate our store remodel program and expand our price investment across the full fleet by the end of 2026, with over 40 targeted store remodels planned for 2026 to further improve the in-store experience. Staying with quality sales growth. In Europe, performance was a little ahead of where we had anticipated. Our brands continued to strengthen their positions through relevance and execution. The key developments here include the Delfood acquisition, adding over 300 convenience stores in Belgium, continued rollout of Delhaize affiliate model to 7 new locations, offering customers the best Delhaize standards with appealing assortments, the latest digital experiences, and great local customer service. We made progress in Serbia following the end of government pricing measures.

Speaker #3: With over 40 targeted store remodels planned for '26 to further improve the in-store experience. Staying with quality sales growth, in Europe, performance was a little ahead of where we had anticipated.

Speaker #3: Our brands continue to strengthen their positions through relevance and execution. And key developments here include the Dell food acquisition, adding over 300 convenience stores in Belgium, continued rollout of the last affiliate model to seven new locations, offering customers the best the last standards, with appealing assortments, the latest digital experiences, and great local customer service.

Speaker #3: And we made progress in Serbia. Following the end of government pricing measures, simultaneously, our European brands are using their own brand propositions to play a leading role in innovation across our store.

Frans Muller: Simultaneously, our European brands are using their own brand propositions to play a leading role in innovation across our store. Recent success stories include, for example, Albert Heijn's recently renewed barbecue assortment with over 80 new products right on time for the sunny weather. Alfa-Beta's award-winning own brand range, called AB Close to the Greek Land, highlighting their commitment to high-quality products inspired by the richness of the Greek gastronomy and local production. To support customers who have faced ongoing pressure on their household budgets, Maxi Serbia significantly stepped up their own brand offering. Switching gears now, and let's talk about the quality of execution. Our omni-channel proposition continues to scale. For example, in the US, online sales grew 14.3% at constant exchange rates, marking the eighth consecutive quarter of double-digit growth.

Speaker #3: Recent success stories include, for example, Albert Heijn's recently renewed barbecue assortment with over 80 new products, right on time for the sunny weather. Alphabeta's award-winning own brand range called AB, close to the Greek land, highlighting their commitment to high-quality products inspired by the richness of the Greek gastronomy and local production.

Speaker #3: And to support customers who have faced ongoing pressure on their household budgets, Maxi Serbia significantly stepped up their own brand offering. Switching gears now, and let's talk about the quality of execution.

Speaker #3: Our omnichannel proposition continues to scale and, for example, in the US, online sales grew 14.3% at constant exchange rates. Marketing the eighth consecutive quarter of double-digit growth.

Speaker #3: Over 90% of customers have access to online shopping. And more than 90% of online sales are fulfilled through same-day services. At Boll, where consumer discretionary spending in general is less robust than last year, we are on top of the rapid changes in customer behavior with AI and social commerce, reshaping how customers shop.

Frans Muller: Over 90% of customers have access to online shopping, and more than 90% of online sales are fulfilled through same-day services. At Bol, where consumer discretionary spending in general is less robust than last year, we are on top of the rapid changes in customer behavior with AI and social commerce reshaping how customers shop. Maite and her team are expanding Bol's suite of AI-powered tools, including the soon-to-launch Shopper Agent, ensuring customers have the support they need throughout their total shopping journey. In Romania, we have merged Mega Image and Profi into one legal entity under the leadership of Xavier. Xavier, who has an extensive track record at Mega Image, recently served as brand president at Delhaize Belgium and brings deep expertise in driving change.

Speaker #3: Maite and her team are expanding Boll's suite of AI-powered tools. Including the soon-to-launch Shopper Agent, ensuring customers have the support they need throughout their total shopping journey.

Speaker #3: In Romania, we have merged Mega Image and Profi into one legal entity under the leadership of Xavier. Xavier, who has an extensive track record at Mega Image, recently served as brand president at the last Belgium and brings deep expertise in driving change.

Speaker #3: The synergy capture from the integration is progressing well, which will provide fuel as we speed up space expansion in the quarter ahead. As we focus on the quality of execution, technology helps us secure it for the future.

Frans Muller: The synergy capture from the integration is progressing well, which will provide fuel as we speed up space expansion in the quarter ahead. As we focus on the quality of execution, technology helps us secure it for the future, bringing greater consistency, efficiency, and precision at scale. With technology and innovation, we stay curious and disciplined, exploring early and scaling only when our customers are ready and it fits our business. Our approach to AI is a good example. Under the leadership of Jan Brecht, we have brought 30 experts together in a group focus area to speed up execution and learning. The power of our portfolio is we can trial and learn a lot quicker than a single operator. This is similar to what we did with things like retail media or mechanization.

Speaker #3: Bringing greater consistency, efficiency, and precision at scale. And with technology and innovation, we stay curious and disciplined. Exploring early and scaling only when our customers are ready and it fits our business.

Speaker #3: Our approach to AI is a good example. Under the leadership of Jan Brecht, we have brought 30 experts together in a group focus area to speed up execution and learning and the power of our portfolio as we can trial and learn a lot quicker than a single operator.

Speaker #3: And this is similar to what we did with things like retail media or mechanization. As you see, with outcomes like edge, our European US European retail media application and our fully mechanized e-commerce fulfillment centers in the Netherlands, we test and learn quickly and scale what works.

Frans Muller: As you see with outcomes like Edge, our European retail media application, and our fully mechanized e-commerce fulfillment centers in the Netherlands, we test and learn quickly and scale what works. For AI, we concentrate on four domains: sourcing and merchandising, marketing, store operations, and agentic shopping. With more than 100 active use cases, we are already capturing value by improving availability and freshness, optimizing pricing and assortment decisions, and increasing operational efficiency in stores. Again, we can integrate these across the system. We really see compounding effects. As we build on our existing AI-supported store associate app in Albert Heijn, we are moving towards a self-optimizing store.

Speaker #3: For AI, we concentrate on four domains. Sourcing and merchandising, marketing, store operations, and agentic shopping. And with more than 100 active use cases, we are already capturing value.

Speaker #3: By improving availability and freshness, optimizing pricing and assortment decisions, and increasing operational efficiency in stores. And again, we can integrate these across the system.

Speaker #3: We really see compounding effects. As we build on our existing AI-supported store associate app in Albert Heijn, we are moving towards a self-optimizing store.

Speaker #3: Here, AI serves as the store's brain. Reading every signal and orchestrating work across people, system, and the systems and devices including electronic shelf labels.

Frans Muller: Here, AI serves as the store's brain, reading every signal and orchestrating work across people, systems and devices, including electronic shelf labels. Lastly, before I hand over to Jolanda Poots-Bijl, I would like to spend a few moments on the quality of our people and the strengths of our distributed operating model. What continues to set us apart is the strength, experience, and passion of our local teams. They are closest to the customer, owning the business in real time, and making decisions every day that truly count. Around them, our support functions continuously improve, simplify, and strengthen the system so that our brands can perform at their best. As you will have seen from this morning's announcement, the supervisory board has completed a thorough process to identify Thierry Garnier as my successor. In the meantime, I remain fully committed.

Speaker #3: And lastly, before I hand over to Yolanda, I would like to spend a few moments on the quality of our people. And the strengths of our distributed operating model.

Speaker #3: What continues to set us apart is the strength, experience, and passion of our local teams. They are closest to the customer, owning the business in real time, and making decisions every day that truly count.

Speaker #3: And around them, our support functions continuously improve. Simplify and strengthen the system so that our brands can perform at their best. As you will have seen from this morning's announcement, the supervisory board has completed a thorough process to identify Thierry Garnier as my successor.

Speaker #3: And in the meantime, I remain fully committed. We have a clear strategy that is focused and is delivering results. My priority over the coming period is exactly where it should be.

Frans Muller: We have a clear strategy that gives focus and is delivering results. My priority over the coming periods is exactly where it should be, strengthening the foundations for the long term and deliver on our promises in the short term. Also working with our teams, keeping the business on track, and continuing to execute with discipline and consistency. Now over to you, Jolanda, to talk more about the financials.

Speaker #3: Strengthening the foundations for the long term and deliver on our promises in the short term. But also working with our teams keeping the business on track and continue to execute with discipline and consistency.

Speaker #3: Now over to you, Yolanda, to talk more about the financials.

Jolanda Poots-Bijl: Well, thank you, J.P., thank you, Frans, good morning to everyone. Reflecting on the current market environment, customers remain both resilient and selective. They are adapting, seeking value, making deliberate choices, and increasingly rewarding consistency and trust. Picking up from Frans, staying closely in sync with the environment and being closely connected to customers with our local teams is a strength. Our proximity to customers and strong footprint of stores are an asset. With 77 million customers shopping with us every week, our primary data gives us insight into changing needs, from price sensitivity, convenience, and seasonal trends. It allows us to respond locally at speed and execute a strategy at a cadence that we carefully adjust as conditions evolve. I'm pleased with our Q1 performance as it reflects discipline and action.

Speaker #2: Well, thank you, JP. And thank you, Franz. And good morning to everyone. Reflecting on the current market environment, customers remain both resilient and selective.

Speaker #2: They are adapting, seeking value, making deliberate choices, and increasingly rewarding consistency and trust. Picking up from Franz, staying closely in sync with the environment and being closely connected to customers with our local teams is a strength.

Speaker #2: Our proximity to customers and strong footprint of stores are an asset. With 77 million customers shopping with us every week, our primary data gives us insight into changing needs, from price sensitivity to convenience and seasonal trends.

Speaker #2: It allows us to respond locally at speed and execute our strategy at a cadence that we carefully adjust as conditions evolve. I'm pleased with our Q1 performance as it reflects discipline and action.

Jolanda Poots-Bijl: The solid start to the year provides us with space to be agile as we trade through the coming quarters and continue to invest in prices to support our customers and drive growth. Let's have a look at the key underlying numbers for the quarter. Net sales grew 2% to EUR 22.3 billion. While the sales growth rate was less robust than in prior quarters, our sales were resilient. We are pleased with overall positive volumes, which underscores that our strategy is fit for purpose, as we are relatively outperforming the market. Health continues to be a key differentiator. As demand grows for high protein and healthier options, products like our high-protein yogurt and cottage cheese are among our best sellers, with around 30 new high-protein items planned for this year. Over 50% of own brand sales already come from healthier products.

Speaker #2: And the solid start to the year provides us with space to be agile as we trade through the coming quarters and continue to invest in prices to support our customers and drive growth.

Speaker #2: Let's have a look at the key underlying numbers for the quarter. Net sales grew 2% to 22.3 billion euros. While the sales growth rate was less robust than in prior quarters, our sales were resilient.

Speaker #2: We are pleased with overall positive volumes, which underscores that our strategy is fit for purpose. As we are relatively outperforming the market. Health continues to be a key differentiator.

Speaker #2: As demand grows for high protein and healthier options, products like our high protein yogurt and cottage cheese are among our best sellers, with around 30 new high protein items planned for this year.

Speaker #2: Over 50% of home brand sales already come from healthier products. We are now expanding our ambition across the full store, making healthier choices more accessible, more affordable, and more relevant.

Jolanda Poots-Bijl: We are now expanding our ambition across the full store, making healthier choices more accessible, more affordable, and more relevant. Our underlying operating margin was 4%. Strong performance in the US and an increase in insurance results at Ahold Delhaize Group more than offset the effect of the governmental decree and inter-intervention on grocery industry prices in Serbia. Diluted underlying earnings per share was $0.62, up 8.9%, primarily driven by higher underlying operating profit and the impact from the share buyback program, partially offset by higher financial expenses and income taxes. Slide 18 shows our results on an IFRS reported basis for Q1, which were in line with our underlying performance. For your convenience, slide 19 provides our comparable store sale trends with and without adjustments for weather, calendar, and other notable items.

Speaker #2: Our underlying operating margin was 4%. Strong performance in the US and an increase in insurance results at Ahold Delhaize Group, more than offset the effect of the governmental decree and intervention on grocery industry prices in Serbia.

Speaker #2: Diluted underlying earnings per share was 62 cents, up 8.9%, primarily driven by higher underlying operating profit and the impact from the share buyback program, partially offset by higher financial expenses and income taxes.

Speaker #2: Slide 18 shows our results on an IFRS-reported basis for Q1, which were in line with our underlying performance. And for your convenience, Slide 19 provides our comparable store sale trends with and without adjustments for weather, calendar, and other notable items.

Jolanda Poots-Bijl: Looking at the regional performance in more detail, US net sales were EUR 12.7 billion. Comparable sales, excluding gas, increased 1.5%. Top-line performance reflected a mix of factors. Weather and calendar, with a positive impact of 40 basis points. Pharmacy sales were impacted by the Inflation Reduction Act with a negative impact of 70 basis points. Egg prices normalizing sharply versus last year, negative impact of 65 basis points, and the SNAP program changes reduced the benefits available to lower-income customers with a negative impact of 55 basis points. Together, these factors reduced our growth rate by 1.5 percentage points. Underneath this, volumes remained stable and our competitive position is strong, demonstrating the resilience of our model. To help with your modeling for the coming periods, here are a few things to remember.

Speaker #2: Looking at the regional performance in more detail, US net sales were 12.7 billion euro. Comparable sales excluding gas increased 1.5%. Top-line performance reflected a mix of factors.

Speaker #2: Weather and calendar, with a positive impact of 40 base points, pharmacy sales were impacted by the inflation reduction act, with a negative impact of 70 base points.

Speaker #2: At prices, normalizing sharply versus last year, a negative impact of 65 base points, and the SNAP program changes reduced the benefits available to lower-income customers, with a negative impact of 55 base points.

Speaker #2: Together, these factors reduced our growth rate by 1.5 percentage points. Underneath this, volumes remained stable and our competitive position is strong, demonstrating the resilience of our model.

Speaker #2: To help with your modeling for the coming periods, here are a few things to remember. We now expect an approximate 450 million dollar impact on US-reported and comparable sales for the year from pharmacy pricing.

Jolanda Poots-Bijl: We now expect an approximate $450 million impact on US reported and comparable sales for the year from pharmacy pricing. Eggs will impact Q2 top line, to a lesser extent as market prices stabilized gradually as we moved into the H2 of the prior year and reduced SNAP benefits to continue to put pressure on our lower-income customer. With uncertainty around the exact magnitude and trajectory of these changes, we will closely monitor the impact throughout the rest of the year as changes in the program are deployed.

Speaker #2: X will impact Q2 top line, but to a lesser extent, as market prices stabilized gradually as we moved into the second half of the prior year, and reduced SNAP benefits to continue to put pressure on our lower-income customer, with uncertainty around the exact magnitude and trajectory of these changes.

Speaker #2: We will closely monitor the impact throughout the rest of the year as changes in the program are deployed. Underlying operating margin in the US was 4.6%, up 20 base points from the prior year.

Jolanda Poots-Bijl: Underlying operating margin in the US was 4.6%, up 20 basis points from the prior year. Higher sales leverage and a favorable mix from winter storms, the positive margin effect from cost deflation in acts, and a favorable mix in pharmacy more than offset price investments and additional costs related to the winter storms. In the US, our omni-channel proposition continues to be a strong growth engine and one of our key competitive advantages. We finished Q1 with a record high penetration level of 10%, with some of the brands already above 11%. Our customers value our partnerships with third parties as our network allows to further expand the accessibility and convenience of our online services to existing and new customers. In Q1, online sales through these channels grew by over 20%. We recently welcomed Uber Eats to our network.

Speaker #2: Higher sales leverage and a favorable mix from winter storms, the positive margin in fact effect from cost deflation in X, and a favorable mix in pharmacy, more than offset price investments, and additional costs related to the winter storms.

Speaker #2: In the US, our omni-channel proposition continues to be a strong growth engine, and one of our key competitive advantages. We finished Q1 with a record high penetration level of 10%, with some of the brands already above 11%.

Speaker #2: Our customers' value our partnerships with third parties, as our network allows to further expand the accessibility and convenience of our online services to existing and new customers.

Speaker #2: In Q1, online sales through these channels grew by over 20%. We recently welcomed Uber Eats to our network, where our excited about the growth opportunities ahead.

Jolanda Poots-Bijl: We are excited about the growth opportunities ahead, especially given Uber Eats strong urban presence and membership program, allowing us to tap into new audiences. Turning to Europe, sales were EUR 9.6 billion. Comparable sales grew 2.7%, excluding the net impact from calendar shifts at the end, and the end of tobacco sales in Belgium. We have now fully cycled the impact of tobacco sales. Online sales grew 3.3%, while online grocery sales grew 7.4%. Albert Heijn performance was negatively impacted by severe winter conditions, which disrupted delivery capabilities in January. Adjusted for this, Albert Heijn's online sales grew by double digits. Performance at bol was impacted by the cycling of a strong prior year and increased consumer pressures, contributing to down trading within bol's assortment.

Speaker #2: Especially given Uber Eats' strong urban presence and membership program, allowing us to tap into new audiences. Turning to Europe, sales were 9.6 billion euro.

Speaker #2: Comparable sales grew 2.7%, excluding the net impact from calendar shifts at the end and the end of tobacco sales in Belgium. We have now fully cycled the impact of tobacco sales.

Speaker #2: Online sales grew 3.3%, while online grocery sales grew 7.4%. Our time performance was negatively impacted by severe winter conditions, which disrupted delivery capabilities in January.

Speaker #2: Adjusted for this, Albert Heijn's online sales grew by double digits. Performance at Bol was impacted by the cycling of a strong prior year and increased consumer pressures, contributing to downgrading within Bol's assortment.

Jolanda Poots-Bijl: Underlying operating margin in Europe was 3.4%, down 10 basis points from the prior year. The realization of synergies and a lower turnover tax rate or IMCA in Romania partially offset the impact from the governmental decree in Serbia, which was in effect through February. Now that the decree has ended, our teams are executing recovery plans as we rebuild our position in the market. We are assessing the impact of the new law on unfair trade practices, or UTP, which was adopted in April in Serbia. New rules on temporary labor in the Netherlands are coming through, planned increases to the youth minimum wage take effect from 2027. We are addressing the high cost pressures through tight cost control, productivity improvements, and operational efficiencies. Moving on to slide 22.

Speaker #2: Underlying operating margin in Europe was 3.4%, down 10 base points from the prior year. The realization of synergies and a lower turnover tax rate, or IMCA in Romania, partially offset the impact from the governmental decree in Serbia.

Speaker #2: Which was in effect through February. Now that the decree has ended, our teams are executing recovery plans as we rebuild our position in the market.

Speaker #2: We are assessing the impact of the new law on unfair trade practices, or UTP, which was adopted in April in Serbia. New rules on temporary labor in the Netherlands are coming through, and planned increases to the youth minimum wage take effect from 2027.

Speaker #2: We are addressing the high cost pressures through tight cost control, productivity improvements, and operational efficiencies. Moving on to Slide 22. Q1 free cash flow was a negative 330 million euro.

Jolanda Poots-Bijl: Q1 free cash flow was EUR -330 million, driven by net working capital due to the calendar and seasonal phasing between the quarters and year-on-year. This is largely timing, and our 2026 guidance for the full year remains unchanged. We invested EUR 600 million in gross capital expenditure. Our brands are well on track with our store remodeling program, elevating our store fleet and integrating the latest innovations to offer our customers a seamless shopping experience while growing our complementary business models. We also opened 41 new stores, including 2 new Food Lion stores, and in February, The Giant Company announced the acquisition of 2 family-owned stores in Pennsylvania, which will open later this year. That wraps up my financial review of Q1 and brings me to our outlook. Given the solid start of the year, we reconfirm our guidance.

Speaker #2: Driven by networking capital, due to the calendar and seasonal phasing between the quarters and year on year. This is largely timing and our 2026 guidance for the full year, remains unchanged.

Speaker #2: We invested 600 million euros in gross capital expenditure. Our brands are well on track with our store remodeling program, elevating our store fleet and integrating the latest innovations to offer our customers a seamless shopping experience, while growing our complementary business models.

Speaker #2: We also opened 41 new stores, including two new food line stores, and in February, the giant company announced the acquisition of two family-owned stores in Pennsylvania, which will open later this year.

Speaker #2: That wraps up my financial review of Q1 and brings me to our outlook. Given the solid start of the year, we reconfirm our guidance.

Jolanda Poots-Bijl: While external risks have increased, we remain confident in our plan. This summer period, we have strong activation plans in place to drive volumes and market share. We will also step more aggressively into price investments as we time our activities to capture the big moments of the summer period. Although we do not provide specific quarterly guidance, phasing effects in and between the quarters are to be expected as we flow investments in line with real-time trading conditions, allowing us to stay sharp and calibrate actions while always keeping an eye on our full-year goals. In closing, we build our growth model not just to navigate challenging conditions, but to perform through them and to grow with them. In times like these, performance isn't driven by big statements. It shows up in those everyday moments when customers choose our brands because they trust the value we offer.

Speaker #2: While external risks have increased, we remain confident in our plan. This summer period, we have strong activation plans in place to drive volumes and market share.

Speaker #2: We will also step more aggressively into price investments as we time our activities to capture the big moments of the summer period. Although we do not provide specific quarterly guidance, phasing effects in and between the quarters are to be expected.

Speaker #2: As we flow investments in line with real-time trading conditions, allowing us to stay sharp and calibrate actions while always keeping an eye on a full year goals.

Speaker #2: In closing, we build our growth model not just to navigate challenging conditions, but to perform through them, and to grow with them. In times like these, performance isn't driven by big statements.

Speaker #2: It shows up in those everyday moments when customers choose our brands because they trust the value we offer. This is in our culture, the strength of our local teams, their know-how, and their passion to serve their customers in real time.

Jolanda Poots-Bijl: This is in our culture, the strength of our local teams, their know-how, and their passion to serve their customers in real time, supported by systems and central skilled competencies which continue to improve and simplify how we work. Together, this gives our business model a lasting edge and gives us the confidence in delivering sustainable long-term value. With that, I thank you for tuning in, and Heidi, please open the lines for questions.

Speaker #2: Supported by systems and central skilled competencies, which continue to improve and simplify how we work. Together, this gives our business model a lasting edge and gives us the confidence in delivering sustainable long-term value.

Speaker #2: And with that, I thank you for tuning in and Heidi, please open the lines for questions.

Operator: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We will take our first question. The question comes from William Woods from Bernstein. Please go ahead.

Speaker #1: Thank you. We will now begin the question and answer session. If you wish to ask a question, you will need to press star one, one on your telephone, and wait for your name to be announced.

Speaker #1: To withdraw your question, please press star one, one again. We will take our first question. The question comes from Will Woods from Bernstein. Please go ahead.

William Woods: Hello. Good morning. Congratulations, Frans, on a long and impressive tenure at Ahold Delhaize. I'm sure we'll be speaking on the next few earnings calls. My first question is about management change. You are obviously experiencing a lot of management change at the moment, with you, JJ, and Claude all leaving your respective CEO positions. I think many investors are worried about an exodus of management only a few years into the Growing Together strategy. How can you give confidence to investors in the continuity of the business strategy and its performance? The second question is on US margins. You've obviously seen strong expansion year over year. How much of this is driven by the favorable mix effect versus underlying business trends like gaining share, and how sustainable do you think it is? Thank you very much.

Speaker #3: Hello, good morning, congratulations friends on a long and impressive tenure at Ahold Delhaize. I'm sure we'll be speaking on the next few earnings calls, but my first question is about management change.

Speaker #3: You've obviously you are, I'm sure, obviously experiencing a lot of management change at the moment. With you, JJ, and Claude all leaving your respective CEO positions, I think many investors are worried about an exodus of management only a few years into the growing together strategy.

Speaker #3: How can you give confidence to investors in the continuity of the business strategy and its performance? And then the second question is on US margins you've obviously seen strong expansion year over year.

Speaker #3: How much of this is driven by the favorable mix effect versus underlying business trends like gaining share, and how sustainable do you think it is?

Speaker #3: Thank you very much.

Frans Muller: Thank you very much, William Woods. On the US margins, Jolanda Poots-Bijl will give a few comments. On the management change, I will. It's of course a sad thing that we see both JJ and Claude decided to leave the company. Especially also JJ with 36 years in the company and big contributor to the success of our company and our Growing Together strategy. The same for Claude, who did a lot of very good work in Europe on the sourcing, on the digital piece, on the own brands piece, and also strengthening the organization in itself. Again, it's also up to them to make those decisions to leave and to adopt another proposition out there.

Speaker #4: Thank you very much, Will. On the US margins, Yolanda will give a few comments. On the management change, I will. It's, of course, a sad thing that we see both JJ and Claude decided to leave the company.

Speaker #4: Especially also JJ with 36 years in the company. And big contributor to the success of our company and a growing together strategy. And the same for Claude, who did a lot of very good work in Europe on the sourcing, on the digital piece, on the own brands piece, and also strengthening the organization in itself.

Speaker #4: But again, it's also up to them to make those decisions. To leave and to adopt another proposition out there. Having said that, we have a strong company on talent and succession planning.

Frans Muller: Having said that, we have a strong company on talent and succession planning. We have already catered for the right processes. Myself, together with the supervisory board, are working on the succession planning for both J.J. and Claude. That is progressing well. The other thing is, one thing we should not forget, is that we have super strong brands operating locally in the market with their own teams, with very good functions and very good officers, also dealing with those functions. We have a very robust and strong organization in general, and that's also what we have dealt with in the past when we had management changes.

Speaker #4: We have already catered for the right processes. Myself, together with the supervisory board, are working on the succession planning. For both JJ and Claude, that is progressing well.

Speaker #4: And the other thing is one thing we should not forget, is that we have super strong brands operating locally in the market with their own teams.

Speaker #4: We have very good functions and very good officers also dealing with those functions. So we have a very robust and strong organization in general.

Speaker #4: And that's also what we have dealt with in the past when we had management changes. That robust organization, well-trained experience, knowing the markets very well, was a very good catalyst to run these kinds of transitions and making sure that we stay in the safe waters of delivering on our growing together strategy.

Frans Muller: That robust organization, well-trained, experienced, knowing the markets very well, was a very good catalyst to run these kind of transitions and making sure that we stay in the safe waters of delivering on our Growing Together strategy. That's exactly our plan, not only for this year, William Woods, but also for fulfilling the coming years of Growing Together, which so far has been a successful plan. That on management change. US margins, Jolanda Poots-Bijl.

Speaker #4: And that's exactly our plan, not only for this year, Will, but also for fulfilling the coming years. Of growing together, which so far has been a successful plan.

Speaker #4: So that on management change, US margins, Yolanda.

Jolanda Poots-Bijl: Yes, thank you for the question, Will. We indeed do not guide on margin, as you are aware on the regional level, and the guidance of around 4% was reiterated with confidence. If I look at the US margin, there are many levers, as always, to be mindful of. There is indeed weather and, you know, the calendar impact that we disclosed, which is incidental. We have some upside from the egg deflation, as we call it. The egg prices went down, which negatively impacted our sales, but had a slight uptick in our margin, which will phase out in the coming quarters. We had a slight uptick from pharmacy in our margin, but also our structural profitability of our online business, which is improving, contributes to the positive result.

Speaker #5: Yes, and thank you for the question, Will. We indeed do not guide on margin as you're aware. On the regional level and the guidance of around 4% was reiterated with confidence.

Speaker #5: If I look at the US margin, there are many levers, as always, to be mindful of. There is indeed weathering the calendar impact that we disclosed.

Speaker #5: Which is incidental. We have some upside from the act deflation, as we call it. So the act prices went down, which negatively impacted our sales.

Speaker #5: But had a slight uptick in our margin, which will phase out in the coming quarters. We had a slight uptick from pharmacy in our margin, but also our structural profitability of our online business, which is improving contributes to the positive result and also we see a slowly but surely improvement in shrink level.

Jolanda Poots-Bijl: Also we see a slowly but surely improvement in shrink level. That of course combined with price investments that we're making, that will continue in the quarters to come. I hope that this gives some background on the buildup of our US margin.

Speaker #5: And that, of course, combined with price investments that we're making and that will continue in the quarters to come. So I hope that this gives some background on the build-up of our US margin.

William Woods: Understood. Thank you very much. Bye.

Speaker #3: Understood. Thank you very much, both.

Operator: Thank you. We will go with our next question. The next question comes from Xavier Le Mené from Bank of America Securities. Please go ahead.

Speaker #1: Thank you. We will go with our next question. The next question comes from Xavier Lemine from Bank of America Securities. Please go ahead.

Xavier Le Mené: Yes, good morning. Thank you for taking my question. 2, if I may. The first one, can you please comment the food inflation you're seeing and potentially across region with the kind of exit rate you've seen, you know, in Q1 and maybe, you know, if you can comment April, just to understand if you've seen any change given the Middle East crisis. That would be the first question. The second one is about the consumer behavior. Do you have any concern going forward, and where are your expectations? Has it changed, you know, from what you said, you know, back to February and what you're seeing right now? Do you see consumer behavior changing, and do you have any concern going forward?

Speaker #6: Yes, good morning. Thank you for taking my question. Two if I may. The first one, can you please comment the food inflation you're seeing and potentially across region with the kind of exit rate you've seen in Q1 and maybe if you can comment April.

Speaker #6: Just to understand if you've seen any change given the Middle East crisis that would be the first question. The second one is about the consumer behavior.

Speaker #6: So do you have any concern going forward? And where are you expectation or have they changed from what you said back to February and what you've seen right now?

Speaker #6: So do you see consumer behavior changing and do you have any concern going forward?

Jolanda Poots-Bijl: Thank you for your questions, Xavier. I'll start with the consumer behavior question. If you look at our strategy, which was launched in 2024, it was centered around the customer and the customer being, one could say, on the hunt for value. We see that customer value focus intensifying in a way, but our strategy ties into that. We disclosed that the launch of a strategy that we were stepping down on our own brand penetration, and we aim at 45% for the group, offering consumers those own branded products at low, low prices and high quality levels. That is a part that ties into that consumer behavior trend. The second part, of course, relates to our price investments. $1 billion additional price investments in the US alone, and we're well on track to execute them.

Speaker #5: Thank you for your questions, Xavier. I'll start with the consumer behavior question. If you look at our strategy, which was launched in 2024, it was centered around the customer and the customer being one could say on the hunt for value.

Speaker #5: We see that customer value focus intensifying in a way, but our strategy ties into that. We disclosed that the launch of a strategy that we were stepping down on our own brand penetration and we aim at 45% for the group, offering consumers those own branded products at low prices and high quality levels.

Speaker #5: So that is a part that ties into that consumer behavior trend. The second part, of course, relates to our price investments, $1 billion additional price investments in the US alone.

Speaker #5: And we're well on track to execute them. And we also see the positive response in, for example, in our volumes because our volumes in the US were stable.

Jolanda Poots-Bijl: We also see the positive response in, for example, in our volumes, because our volumes in the US were stable, whereas market data indicates that the overall market was highly negative. The initiatives we took to support consumer trends and the hunt for value are playing out. In general, we see consumers seeking for convenience, so our online step down ties into that. We see that ready-to-eat and ready-to-heat solution are gaining traction, and we see that healthy options, as I referred to. Also in my short introduction is also gaining traction. It all ties down to our Growing Together strategy, so we're quite well prepared to respond to that. Maybe, Frans, you want to elaborate on the first question?

Speaker #5: Whereas market data indicates that the overall market was highly negative. So the initiatives we took to support consumer trends and the hunt for value are playing out.

Speaker #5: In general, we see consumers seeking for convenience. So our online step-down ties into that. We see that ready to eat and ready to heat solution are gaining traction.

Speaker #5: And we see that healthy options, as I referred to, also in my short introduction is also gaining traction. But it all ties down to our growing together strategy.

Speaker #5: So we're quite well prepared to respond to that. Maybe Franz, you want to allude on the first question?

Frans Muller: Yeah. Xavier, on the, on inflation, when we look at the US, we always work at this food at home northeast inflation level. That was for us 2.1% in Q1, coming down from 2.4% in the Q4. That is for the US. That differs, of course, by category. Here we see some elevated categories like cereals and bakery, but also we also see big category like dairy coming down, and the same for the eggs, as Yolanda already mentioned before. When we look at Europe, the food at home in the Dutch market, 1.7% coming down from 3.7% in Q4, so that's 2 full percentage points down.

Speaker #3: Yeah, Xavier, on inflation. When we look at the US, we always work at this food at home Northeast inflation level. That was for us 2.1% in the first quarter.

Speaker #3: Coming down from 2.4% in the Q4. That is for the US. And that differs, of course, by category here. We see some elevated categories like cereals and bakery, but also we also see big category like dairy coming down.

Speaker #3: And the same for the eggs as Yolanda already mentioned before. When we look at Europe, the food at home in the Dutch market, 1.7% coming down from 3.7% in the fourth quarter.

Speaker #3: So that's a full percentage down. And in Belgium, almost flat with 0.1% coming down from 2.9% in the fourth quarter. Just to give you an idea about the biggest market we have.

Frans Muller: In Belgium, almost flat with 0.1% coming down from 2.9% in Q4. Just to give you an idea about the biggest market we have. There's a little bit of mix back in the CSE countries, but also their inflation, for example, in the Czech Republic and Serbia came down quite a bit.

Speaker #3: And it's a little bit mixed back in the CSE countries, but also there inflation, for example, in the Czech Republic and Serbia came down quite a bit.

[Analyst]: Thank you.

Xavier Le Mené: Thank you.

Speaker #6: Thank you.

Operator: Thank you. We will go to our next question. The next question comes from Sreedhar Mahamkali from UBS. Please go ahead.

Speaker #1: Thank you. We will go to our next question. The next question comes from Sreedhar Mahamkali from UBS. Please go ahead.

Sreedhar Mahamkali: Hi, good morning. Thanks for taking my question today. Frans, really many congratulations on the update on your retirement next year. I think your achievements really speak for themselves at Ahold Delhaize and Delhaize prior to that over the past decade plus. I think super clear transition plan with a long period of gestation that you've put in place. All very appreciated. Thank you for all this over the years. Maybe just a couple of questions. Firstly, I think you've just referred, Jolanda, I think to some phasing in the US margins. In the release, you talked about accelerating Stop & Shop investments in the US by the end of 2026. How much of the change is it versus your prior plans?

Speaker #4: Hi, good morning. Thanks for taking my question today. First of all, Franz, really many congratulations on the update on your retirement next year. I think your achievements really speak for themselves that our hold Delhaize N.V.

Speaker #4: prior to that over the past decade for us. So I think super clear transition plan with a long period of gestation that you put in place all very appreciated.

Speaker #4: Thank you, for all this over the years. And maybe just a couple of questions firstly, I think you've just referred, Yolanda, I think to some phasing in the US margins in the release.

Speaker #4: You've talked about accelerating stop and shop investments. In the US by the end of 2026. How much of the change is it versus your prior plans and does that mean we should be a little bit more circumspect on the US margin outperformance that we've seen perhaps in the last couple of quarters or so?

Sreedhar Mahamkali: Does that mean we should be a little bit more circumspect on the US margin outperformance that we've seen perhaps in the last couple of quarters or so? That's the first question. Secondly, also, I think, Yolanda, you've talked about a couple of regulatory changes you are assessing in Serbia and the Netherlands. It would be amazingly helpful if you could talk through what is changing and how we should think about it, if anything at all, for the rest of the year or into 2027. That would be very helpful. Thank you.

Speaker #4: So that's the first question. Secondly, also, I think Yolanda, you've talked about a couple of regulatory changes. You are assessing in Serbia and the Netherlands.

Speaker #4: It would be amazingly helpful if you could talk through what is changing and how we should think about it if anything at all for the rest of the year or into 2027.

Speaker #4: That would be very helpful. Thank you.

Frans Muller: Thank you, Sreedhar, and also thank you, William, for the good wishes. I take them on board, but to be honest.

Speaker #3: Thank you, Sreedhar and also thank you, Will, for the good wishes. I take them on board, but to be honest, you have to work for quite a while.

Jolanda Poots-Bijl: You have to work for quite a while.

Frans Muller: We are.

Jolanda Poots-Bijl: We count on you.

Frans Muller: We are in full flow for delivering on 2026, teams are razor-sharp focused in a dynamic time as we have now. You can count on me for the full year to make sure that we deliver. On a few questions, Sreedhar, Stop & Shop and pricing or US in overall. You know that we said earlier for our 4 years strategy, $1 billion on price investments in the US spread equally over the years. Also within the year, intra-year, it is spread equally over the quarters. We had earlier the question, really, does Stop & Shop get a much higher proportion of that piece? We also said, also Stop & Shop gets its proportional part of the pricing.

Speaker #3: We count on you.

Speaker #4: We're in full flow for delivering on 26 and teams are ratio shop focused in a dynamic time as we have now. So you can count on me for the full year to make sure that we deliver.

Speaker #4: But on a few questions, Sreedhar, stop and shop and pricing or US in overall. You know that we said earlier for our four years strategy a billion dollars on price investments.

Speaker #4: In the US, spread equally over the years. And so also within the year intra year, it's spread equally over the quarters. And we had earlier the question whether does stop and shop get a much higher proportion of that piece.

Speaker #4: And we also said also stop and shop gets its proportional part of the pricing. But we will see a second round of pricing in the US as we promised and as we also can afford because we have a little bit higher margin in the US as you can see.

Frans Muller: We will see a second round of pricing in the US, as we promised, and as we also can afford, because we have a little bit higher margin in the US, as you can see. There's some space and some room to invest there, and we have a Growing Together strategy. We go for sales and volume growth in the US. We already shared with you some very good news on Stop & Shop, if it's NPS, if it's market share, if it's volume growth. There also for Stop & Shop, you will see quite some good investments on pricing, coming in in the coming weeks and throughout this quarter as well. I'm very proud about Roger and the team. They understand now where elasticity is. We see good uptakes there.

Speaker #4: So there's some space and some room to invest there. And we have a growing together strategy. So we go for sales and volume growth in the US.

Speaker #4: And we already shared with you some very good news on stop and shop. If it's NPS, if it's market share, if it's volume growth.

Speaker #4: And there also for stop and shop, you will see quite some good investments on pricing coming in the coming weeks and throughout this quarter as well.

Speaker #4: I'm very proud about Roger and the team, the understand now where elasticity is and we see good upticks there. And also that's together with our own brand proposition for stop and shop.

Frans Muller: Also this together with our own brand proposition for Stop & Shop. We are getting in the right space of getting Stop & Shop back on its feet. Too early to call victory, of course, but happy with the investments we're going to make. Regulations.

Speaker #4: We are getting in the right space of getting stop and shop back on its feet. Too early to call victory, of course, but happy with the investments we're going to make.

Jolanda Poots-Bijl: Regulations. Yes. If we look at the two, one I highlighted, and hello, Sreedhar, thank you for your questions. The two that I highlighted was the first one around Serbia. Indeed, the governmental decree and intervention on grocery industry pricing has ended, but it did impact our Q1 results, both in top line and in UOP. That will phase out as we rebuild our market position in the quarters to come. What I also refer to in Serbia was the so-called UTP that will not impact sales nor our margin. It could impact our free cash flow directly, of course, because it impacts the payment terms that we have. We are assessing that impact. Overall, as we said earlier, we reiterated our guidance also on free cash flow.

Speaker #4: Regulations.

Speaker #7: Regulations. Yes. If we look at the 2.1, I highlighted and hello, Sreedhar, thank you for your questions. The two that I highlighted was the first one around Serbia.

Speaker #7: So indeed, the governmental decree and intervention on grocery industry pricing has ended. But it did impact our Q1 result both in top line and in UOP.

Speaker #7: So that will phase out as we rebuild our market position in the quarters to come. But also refer to in Serbia was the so-called UTP that will not impact sales nor our margin.

Speaker #7: It could impact our free cash flow directly, of course, because it impacts the payment terms that we have. We are assessing that impact. Overall, as we said earlier, we reiterated our guidance also on free cash flow.

Jolanda Poots-Bijl: We think we can manage around that one. The last one I shared was on the wage inflation in the Netherlands, which is quite substantial also going forward. We need to offset that where we can with productivity improvements, increased efficiencies, et cetera. As you are aware, we also have a steep cost reduction program again in place of EUR 1.25 billion, and we're well on track to deliver on that, which then supports us again. Thank you.

Speaker #7: So we think we can manage around that one. Then the last one I shared was on the wage inflation in the Netherlands, which is quite substantial also going forward.

Speaker #7: So we need to offset that where we can with productivity improvements, increased efficiencies, etc. And as you are aware, we also have a steep cost reduction program again in place of 1.25 billion.

Speaker #7: And we're well on track to deliver on that, which then supports us again. Thank you.

Frans Muller: Thank you.

Speaker #6: Thank you.

Operator: Thank you. We will now go with our next question. The next question comes from Rob Joyce from BNP Paribas. Please go ahead.

Speaker #1: Thank you. We will now go with our next question. The next question comes from Rob Joyce from BNP Paribas. Please go ahead.

Rob Joyce: Hi. Morning. Thanks very much for taking the questions. Yeah, just to echo Sreedhar's comments there, Frans. I wish you all the best, with a year to go. Questions. US, I guess, are we isolating any sort of consumer slowdown purely to SNAP customers, or are we seeing a more broader slowdown? Should we read those price investments as broader reaction to what's happening in the market at the moment, or are they purely proactive? The second one is just, Frans, I'm guessing you're gonna have some kind of handover period with Thierry at some point. Just to understand what you think he should be focusing on and where you'll be directing his attentions as he takes the role. Thanks very much.

Speaker #6: Hi, morning. Thanks very much for taking the questions. Yeah, I just want to echo Sreedhar's comment there, Franz. I wish you all the best, but obviously a year to go.

Speaker #6: Questions. So US, I guess, can we are we isolating any sort of consumer slowdown purely to snap customers or are we seeing a more broader slowdown?

Speaker #6: And should we read those price investments as broader reactions to what's happening in the market at the moment or are they purely proactive? And then the second one is just Franz, I'm guessing you're going to have some kind of handover period with Thierry at some point just to understand what you think he should be focusing on and where you'll be directing his attentions as he takes the role.

Speaker #6: Thanks very much.

Jolanda Poots-Bijl: Okay. Thank you for the questions. I'll take the first one. Frans will talk about your handover question. We are facing our price investments in an optimal way to drive growth with a sharp eye on the results that we promised to the markets. We're not responding to the immediate changes that we see because, as you know, we already disclosed that we would invest heavily in prices at the start of our strategy.

Speaker #7: Okay. Thank you for the questions. I'll take the first one in Franz. We'll talk about your handover question. We are phasing our price investments in an optimal way to drive growth with a sharp eye on the results that we promised to the markets.

Speaker #7: We're not responding to the immediate changes that we see because as you know, we already disclosed that we would invest heavily in prices at the start of our strategy.

Frans Muller: Yeah. I would dare to add to that story, Jolanda, also that we're seeing quite positive momentum at the moment in the US. We, relative to our competition, we have better volume numbers. We see sales picking up. We see a number of brands reacting very positively to our price investment on brand propositions and the improvement of our execution. That momentum we will use through the summer to make the right price investments and to see where we can find some acceleration. On the handover, I think.

Speaker #4: Yeah. And I would dare to add to that story, Yolanda, also that we see a quite positive momentum at the moment. In the US, we relative to our competition, we have better volume numbers.

Speaker #4: We see sales picking up. We see a number of brands reacting very positively to our price investment, own brand propositions, and the improvement of our execution.

Speaker #4: So at that momentum, we will use through the summer to make the right price investments and to see where we can find some acceleration.

Speaker #4: On the handover, I think that is much.

Jolanda Poots-Bijl: It's too early.

Speaker #7: Maybe it's too early.

Frans Muller: Much too early again. I think what we have to do ourselves, in this year and in this 12 months out, we have a strategy which you know. We have a market which is dynamic. We will make some intelligent tweaks to our strategy to find the right proposition for our customers in a sentiment where they are. We have with Jan Brecht on board, our new CTO, quite a lot of energy on looking at our technology, digital loyalty, AI agenda. We make very good progress on that also with the US and the European teams. That means that we will have a stronger tech background in investments we make, making sure that we are getting better seamless proposition for our customers.

Speaker #4: Much too early again. I think what we have to do ourselves in this year and in this 12 months out, we have a strategy which you know.

Speaker #4: We have a market which is dynamic. So we will make some intelligent tweaks to our strategy to find the right proposition for our customers in a sentiment where they are.

Speaker #4: We have with Jan Brecht on board, our new CTO, quite a lot of energy on looking at our technology, digital, loyalty, AI agenda. And we make very good progress on that also with the US and the European teams.

Speaker #4: So that means that we will have a stronger tech background in investments we make. Making sure that we are getting better seamless proposition for our customers.

Frans Muller: That development you also will see in 2026. I'm pretty sure that with the plans we have now, with the delivery, the foundation we have, will give a very good set of ingredients also for my successor to build on this and to have, of course, also from his view, a fresh look and perspectives as well, which we all would appreciate. Solid foundation, a lot of things happening. I think in the coming quarters, you will hear more about the new elements of how we're going to tweak our Growing Together strategy to serve our customers even better.

Speaker #4: So that development, you also will see in 2026. And I'm pretty sure that with the plans we have now with the delivery, the foundation we have, we'll give a very good set of ingredients also for my successor to build on this.

Speaker #4: And to have, of course, also from his view, a fresh look and perspectives as well, which we all would appreciate. So solid foundation, a lot of things happening.

Speaker #4: And I think in the coming quarters, you will hear more about the new elements of how we're going to tweak our growing together strategy to serve our customers even better.

Rob Joyce: Okay. Thank you. Just sorry. Just to follow back on that SNAP customer, is it really only the SNAP customers you're seeing sort of changing behavior in, or are you starting to see a more broader change in US customer behavior?

Speaker #6: Okay. Thank you. Just sorry to follow back on that snap customer. Is it really only the snap customers you're seeing sort of changing behavior in or are you starting to see a more broader change in US customer behavior?

Jolanda Poots-Bijl: For all the SNAP impact is the most visible one. We have been talking about the customer being on the hunt for value for quite a while. If you look at the general context in the world, of course, there is a lot of uncertainty, and there is the risk of inflation getting higher, and that will impact the markets that we operating in at large. That is the information that we have at this point in time.

Speaker #7: It's all the snap impact is the most visible one. And we have been talking about the customer being on the hunt for value for quite a while.

Speaker #7: If you look at the general context in the world, of course, there is a lot of uncertainty. And there is the risk of inflation getting higher.

Speaker #7: And that will impact the markets that we operating in at large. And that is the information that we have at this point in time.

Rob Joyce: Okay. Thank you.

Speaker #6: Okay. Thank you.

Operator: Thank you. We will go with our next question. The next question comes from Fernand de Boer from Degroof Petercam. Please go ahead.

Speaker #1: Thank you. We will go with our next question. The next question comes from Ferdinand De Boer from De Groef Pieterkam. Please go ahead.

Fernand de Boer: Yes. Good morning. It's Fernand de Boer of Petercam. Actually, one follow-up question and one other question is on the follow-up on the price investments you're making or going to make in the US. This comes on top of the, to be clear, is this on top of the $1 billion or it's part of the $1 billion? That's the first question. Then on Europe, could you say a little bit on the market share trends for Albert Heijn and Delhaize in Belgium and Albert Heijn, of course, in the Netherlands?

Speaker #6: Yes. Good morning. It's Fernand Boer, De Groef Pieterkam. Actually, one follow-up question and one other question is on the follow-up on the price investments you're making or going to make in the US.

Speaker #6: This comes on top of the, to be clear, is this on top of the 1 billion or it's part of the 1 billion? That's the first question.

Speaker #6: And then on Europe, could you say a little bit on the market share trends for Albert Heijn and Delhaize in Belgium and Albert Heijn, of course, in the Netherlands?

Jolanda Poots-Bijl: Yes. Thank you for your questions, Fernand. Now, the price investments we talk about are part of the EUR 1 billion that we disclosed when we had our strategy day. It's deploying the announced EUR 1 billion in a certain phasing to optimize growth versus the ULP that we get back for it.

Speaker #7: Yes. Thank you for your questions, Fernand. Now, the price investments we talk about are part of the 1 billion that we disclosed when we had our strategy day.

Speaker #7: So it's deploying the announced 1 billion. In a certain phasing to optimize growth versus the ULP that we get back for it.

Frans Muller: Fernand de Boer, good morning. In our Dutch and Belgium markets, we're seeing continuation of the trend. That means, Albert Heijn is gaining further market share. Albert Heijn in Belgium is gaining further market share. Delhaize in Belgium is gaining further market share, and bol.com is very stable on its market share. Very content with the developments in the Benelux, and it's nice to see that our Delhaize colleagues in Belgium, after the big operation, they are really trending better than original business plan. That is nice to see, and that is the situation on the market shares in the Netherlands and in Belgium.

Speaker #4: And then, Fernand, good morning. In our Dutch and Belgium markets, we see in continuation of the trend. That means Albert Heijn is gaining further market share.

Speaker #4: Albert Heijn in the Belgium is gaining further market share. Delhaize in Belgium is gaining further market share. And Bol is very stable on its market share.

Speaker #4: So very content with the developments in the Benelux and it's nice to see that our Delhaize colleagues in Belgium after the big operation, they are re-trending better than original business plan.

Speaker #4: And that is nice to see. And that is the situation on the market shares in the Netherlands and in Belgium.

Fernand de Boer: Thanks. May I one follow-up on Jolanda, in your prepared remarks, you mentioned something. Is the quarterly performance going to be more volatile, but full year performance should be still in line with guidance? Is that the way we should read it?

Speaker #6: Thank you. May I have one follow-up on Yolanda? In your prepared remarks, you mentioned something. Is the quarterly performance going to be more volatile but full-year performance should be still in line with guidance?

Speaker #6: Is that the way we should read it?

Jolanda Poots-Bijl: Yeah, that's more referring to the cadence that we choose.

Speaker #7: Yeah. That's more referring to the cadence that we choose because we are phasing to optimize also for example, in view of the summer period ahead, where to deploy which price investment to get the biggest return for that investment.

Fernand de Boer: Yeah.

Jolanda Poots-Bijl: We are phasing to optimize also, for example, in view of the summer period ahead, where to deploy which price investment to get the biggest return for that investment. That is just the phasing throughout the year.

Speaker #7: So that is just the phasing throughout the year.

Fernand de Boer: Okay. Thank you very much.

Speaker #6: Okay. Thank you very much.

Jolanda Poots-Bijl: You're welcome.

Operator: Thank you. We will go with our next question. The next question comes from François Digard from Kepler Cheuvreux. Please go ahead.

Speaker #7: You're welcome.

Speaker #1: Thank you. We will go with our next question. The next question comes from François Desgardes from Kepler Chevreaux. Please go ahead.

François Digard: Good morning. Two question on my side. First, on online sales, they remain quite impressive in the US. Could you help us understand what is attributable to new partnership on one hand, on the higher demand on the other hand? Given the timing of the partnership secured in 2025, should we expect this growth rate to moderate over the course of the year? My second question is on group margin. What is the main reason for maintaining the guidance despite a stronger than expected Q1? Is it the intention to accelerate that Stop & Shop, geopolitical concerns, something else? Thank you.

Speaker #8: Good morning. Two questions. On my side, first on online sales. They remain quite impressive in the US. Could you help us understand what is attributable to new partnership on one hand?

Speaker #8: On the higher demand on the other hand. Given the timing of the partnership secured in '25, should we expect this growth rate to moderate over the course of the year?

Speaker #8: On my second question is on group margin. What is the main reason for maintaining the guidance despite a stronger than expected Q1? Is it the intention to accelerate at stop-and-shop, geopolitical concerns, something else?

Speaker #8: Thank you.

Frans Muller: Jolanda volunteers to give an answer on the group margin.

Speaker #4: So Yolanda volunteered to give an answer on the group margin.

Jolanda Poots-Bijl: I always like that topic, François.

Speaker #7: I always like that topic, France.

Frans Muller: I will talk a little bit more about the online sales growth. It is quite impressive. 14.3% in the quarter. We have a record high, 10% penetration of online sales in the US. The eighth consecutive quarter, as Jolanda Poots-Bijl already mentioned, on double digits online. Where is that coming from? It is coming, first of all, from all the brands, Food Lion stepped in a little bit lower, so they have higher, even higher growth rate than the 14%. Stop & Shop is still the company in our total network with the highest online penetration. We work with the click and collect system where through which 90% of our customers have access to our online proposition, and more than 90% has access to online same-day proposition.

Speaker #4: And I will talk a little bit more about the online sales growth. It's quite impressive, huh? 14.3% in the quarter. We have a record high 10% penetration of online sales in the US.

Speaker #4: The eighth consecutive quarter, as Yolanda already mentioned, on double-digit online where is that coming from? It's coming first of all from all the brands.

Speaker #4: Footline stepped in a little bit lower. So they have higher, even higher growth rate than the 14%. But stop-and-shop is still the company in our total network with the highest online penetration.

Speaker #4: We work with the click and collect. System where through which 90% of our customers have access to our online proposition. And more than 90% has access to online same-day proposition.

Frans Muller: The other thing is that we also work with those partners. If we would give you a little bit idea, roughly 60% of our total sales, online sales, is coming through the click and collect proposition, which is our own facility and our own sweating the stores and network. We made quite some adjustments in reducing our assets the last 2 years, so it's really sweating our own stores. The other 40% is coming through marketplaces, where we started with Instacart, successfully with DoorDash, and now we added also Uber Eats.

Speaker #4: And the other thing is that we also work with those partners. So if you would give you a little bit of that there, roughly 60% of our total sales online sales is coming through the click and collect proposition, which is our own facility and our own sweating the stores and network.

Speaker #4: We made quite some adjustments in reducing our assets the last two years. So it's really sweating our own stores. And the other 40% is coming through marketplaces.

Speaker #4: Where we started with Instacart, successful with DoorDash, and now we added also Uber Eats. The beauty of those three marketplace partners with whom we are very happy in the way we communicate, and they are very happy with our 60 billion dollar food sales on the East Coast and strong number one and two positions, is that they have different customer journeys and serve different customer attributes and different customer needs.

Frans Muller: The beauty of those three marketplace partners, with whom we are very happy in the way we communicate, and they are very happy with our EUR 60 billion food sales on the East Coast and strong number one and two positions, is that they have different customer journeys and serve different customer attributes and different customer needs. There's quite a high level of complementarity. The other good thing is that through those partners, we also get new customers, and that is also a great thing. Will also contribute to this sales growth numbers. If you look at those sales growth numbers and you compare us with quite some other players in our market, we also gain online sales there, online sales share there with most of them.

Speaker #4: So there's quite a high level of complementarity. The other good thing is that through those partners, we also get new customers. And that is also a great thing.

Speaker #4: We'll also contribute to this sales growth numbers. And if you look at those sales growth numbers and you compare us with quite some other players in our market, we also gain online sales there online sales share there with most of them.

Frans Muller: This a little bit is a little bit more color on the online, what's going on in the US.

Speaker #4: So this is a little bit it's a little bit more color on the online what's going on in the US.

Jolanda Poots-Bijl: Then your question on the margin, why reiterate our guidance whilst over-delivering in Q1. I hope that you would be very pleased with us reiterating our guidance, but let's dive a little bit deeper. There are some one-offs impacting Q1 that will phase out as we revert to. We also alluded on the phasing of price investments that will have an impact on the quarterly margins going forward. Last but not least, although the direct impact of the Middle East conflict are limited, there are still, because we're largely hedged on, for example, diesel and energy, there are still some impacts that we need to mitigate, and that is, has been taken on in this guidance.

Speaker #7: And then your question on the margin, why reiterate our guidance whilst overdelivering in Q1. I hope that you would be very pleased with us reiterating our guidance.

Speaker #7: But let's dive a little bit deeper. There are some one-offs impacting Q1 that will phase out as we revert to. And we also alluded on the phasing of price investments that will have an impact on the quarterly margins going forward.

Speaker #7: And last but not least, although the direct impact of the Middle East conflict are limited, there are still because we're largely hatched on, for example, diesel and energy.

Speaker #7: There are still some impacts that we need to mitigate and that is has been taken on in this guidance. And also the snap impact on sales that we alluded to that although the sales impact we have disclosed the number, there is also an impact of course of that sales not flowing through to our margin.

Jolanda Poots-Bijl: Also the SNAP impact on sales that we alluded to, that although the sales impact, we have disclosed the number, there is also an impact, of course, of that sales not flowing through to our margin. It's, as always, many levers to look at. We are confident that we can deliver on the plans that we disclosed and on the results that we included in our guidance, even with the slightly increased risk profile that is related to the Middle East and SNAP.

Speaker #7: So it's a as always, many levers to look at. We are confident that we can deliver on the plans that we disclosed and on the results that we included in our guidance.

Speaker #7: Even with the slightly increased risk profile that is related to the Middle East and snap.

François Digard: Thank you. That's very clear. Just if you could follow up on the first question on online sales, could you help us understand the shape of growth you expect for the year? Uber is pretty new, so does it help to have to maintain this circa 14%, 15% growth over the next quarters?

Speaker #8: Thank you. That's very clear. Just if you could follow up on the first question on online sales, could you help us understand the shape of growth you expect for the year?

Speaker #8: Because you very is pretty new. So does it help to have to maintain this circa 14, 15 percent growth over the next quarters?

Frans Muller: Yeah, that is, that is an item with high interest. I understand that, we don't guide on full year online sales shares and also not distribute over the quarters. We're very happy with online double digit this quarter, we think that online is a substantial part of our proposition in an omni-channel world. It depends also on customer demand, it is of course also different brand by brand and region by region and higher and lower penetrated brands so far.

Speaker #4: That is an item with high interest. I understand that. But we don't guide on full year online sales shares and also not distributed over the quarters.

Speaker #4: We're very happy with online double-digit this quarter. And we think that online is a substantial part of our proposition in an omni-channel world. And it depends also on the customer demand and it is of course also different brand by brand and region by region and higher and lower penetrated brands so far.

Jolanda Poots-Bijl: It has our utmost focus. We are focusing on it as it is part of that growth engine that we're feeding.

Speaker #7: And it has our optimized focus. So we are focusing on it as it is part of that growth engine that we're feeding.

Frans Muller: Yeah. It's getting more profitable at the same time with as total allocated profitability, but the profitability is growing.

Speaker #4: Yeah. And it's good. And it's getting more profitable in the same time we as total allocated profitability. But the probability is growing.

François Digard: Great. Thank you very much.

Speaker #8: Great. Thank you very much.

Operator: Thank you. We will go with our next question. The next question comes from Maxime Stranart from ING Bank. Please go ahead.

Speaker #9: Thank you. We will go with our next question. The next question comes from Maxim Stranart from ING Bank. Please go ahead.

Maxime Stranart: Hi, good morning. Just one question on my side, if I may. Looking at working capital in Q1, obviously quite a sizable outflow, especially related to payables, if I'm not mistaken. I understand a part of this is due to timing and the timing of Easter especially, but could you maybe a bit quantify what was actually the impact of that later Easter this year? That would be very helpful. Thank you.

Speaker #10: Hi. Good morning. Just one question on my side if I may. Looking at freaking cap in Q1, obviously quite a sizable outflow. Especially related to payables if I'm not mistaken.

Speaker #10: So I understand a part of this is due to timing and the timing of Easter especially. But could you maybe a bit quantify what was actually the impact of that earlier well, that later Easter this year?

Speaker #10: That would be very helpful. Thank you.

Jolanda Poots-Bijl: Well, thank you for the question. Indeed, it has, of course, all our attention. We're very working capital-focused. You were right. The working capital created that negative free cash flow impact in Q1, and was mainly related indeed to payables and also for the rest in the call, our payable position trends around EUR 9 billion. A few percent of deviation in timing already has quite an impact. We're used to managing that over time, and then you take that onwards in Q1. This is as much detail that I could share. I think what helps is the reiterating of our guidance also on free cash flow.

Speaker #7: Well, thank you for the question. And indeed, it has of course all our attention. We're very working capital focused. You were right. Working capital created that negative free cash flow impact in the first quarter and was mainly related indeed to payables.

Speaker #7: And also for the rest in the call, our payable position trends around 9 billion. So a few percent of deviation in timing already has quite an impact.

Speaker #7: We're used to managing that over time. And the deviation that you've seen in Q1 was mainly related to the outperformance of last year at the end of the year.

Speaker #7: And then you take that onwards in the first quarter. And this is as much detail that I could share. I think what helps is the reiterating of our guidance also on free cash flow.

Jolanda Poots-Bijl: We do expect that to phase out going forward.

Speaker #7: So we do expect that to phase out going forward.

Maxime Stranart: Well, thank you for your time and, congrats again, to Frans for, his retirement.

Speaker #10: Well, thank you for your time. And congrats again to France for his retirement.

Frans Muller: Thank you.

Speaker #4: Thank you.

Operator: Thank you. We will now take our final question for today. Your final question comes from the line of Matthew Clements from Barclays. Please go ahead.

Speaker #9: Thank you. We will now take our final question for today. Your final question comes from the line of Matthew Clements from Barclays. Please go ahead.

Matthew Clements: Good morning, both and Frans, congratulations. First question on inflationary pressure for this year. In your results, you talk about differences in the, you know, to your position in recent history, but perhaps you could just talk generally about what you're seeing in supply chain, how that compares to 2022, 2023, and how you think about some of these pressures working their way through supply chain through this year. The second question would be on quick commerce. We're seeing some of your peers, particularly in the UK, talking about rapid growth in quick commerce. How are you positioned in that channel? What's the scale? What's the approach? What's the profitability profile at the moment? How do you think about things like retail media and data ownership in that context? Thank you.

Speaker #11: Good morning. Both and Franz, congratulations. First question year. In your results, you talk about differences in to your position in recent history. But perhaps you could just talk generally about what you're seeing in supply chain, how that compares to '22, '23, and how you think about some of these pressures working their way through the food supply chain through this year.

Speaker #11: And the second question would be on quick commerce. We're seeing some of your peers particularly in the UK talking about rapid growth in quick commerce.

Speaker #11: How are you positioned in that channel? What's the scale? What's the approach? What's the profitability profile at the moment? And how do you think about things like retail media and data ownership in that context?

Speaker #11: Thank you.

Frans Muller: Thank you, and thanks for the good wishes, a year out.

Speaker #4: So thank you. And thanks for the good wishes. A year out. But.

Jolanda Poots-Bijl: I keep reiterating, you have to work for the next 12 months.

Speaker #7: I keep reiterating. You have to work for the next 12 months.

Frans Muller: Yeah, that's what I.

Jolanda Poots-Bijl: Intend to do.

Speaker #4: Yeah. That's what I have.

Frans Muller: I'm fully energized by that, for sure. Forward-looking inflation, that's more or less what you ask. I understood your question. We have economists working on all these kind of topics and follow commodity prices and follow energy prices and follow packaging prices and these kind of things. If we look a little bit at the Middle East, the conflict there could give all reasons to believe that energy prices are going up. As Jolanda already mentioned, for 2026, we are largely hedged both for electricity and diesel in both the US and in Europe. If you look at raw materials and commodities, if they go up, then we know that these kind of things always come in when they come with a sort of delay. We have to manage this.

Speaker #7: Intend to do.

Speaker #4: I'm fully energized. But that's for sure. So forward-looking inflation, that's more or less what you ask. I understood your question. We have economists working on all these kind of topics and follow commodity prices.

Speaker #4: And follow energy prices. And follow packaging prices and these kind of things. If we then look a little bit at the Middle East, then the conflict there could give all reasons to believe that energy prices are going up.

Speaker #4: But as Yolanda already mentioned, for 2026, we are largely hedged both for electricity and diesel in both the US and in Europe. But if you look at raw materials and commodities, if they go up, then we know that these kind of things always come in when they come with a sort of delay.

Speaker #4: And we have to manage this. It's. Unusual these kind of situations. We have seen more delays a couple of quarters years ago. We talked about cocoa and coffee and all these kind of things.

Frans Muller: It's not unusual, these kind of situations. We have seen more delays a couple of quarters years ago. We talked about cocoa and coffee and all these kind of things. We know how that works. Therefore, also, the relationship and the understanding with our vendors is important here, that we make sure that with our should-cost models, that we negotiate these kind of things, that we bring this down to what is real and what is transparent, and that we fight for our customers to make sure that we can avoid as much as we can food inflation, because that is part of our mission. Let's see how this goes. Energy, Middle East, raw materials, commodities.

Speaker #4: So we know how that works. And therefore also the relationship and the understanding with our vendors is important here that we make sure that with our shoot cost models, that we negotiate these kind of things, that we bring this down to what is real and what is transparent.

Speaker #4: And that we fight for our customers to make sure that we can avoid as much as we can food inflation. Because that is our part of our mission.

Speaker #4: So let's see how that goes. Energy Middle East, raw materials, commodities. Of course, I'm concerned that this might cost food inflation. But we work to the max to do the best with our cost-saving cost for our save for our customer programs, the 1.25 billion every year in.

Frans Muller: Of course, I'm concerned that this might cause food inflation, but we work to the max to do the best with our cost saving, cost for our save our customer programs, the EUR 1.25 billion every year in our balance. This is not completely new. It is not a completely new phenomenon in general. This is a little bit, what I see. For the moment, we do not see big upticks in inflation, but there's quite some uncertainty in markets, and we have to deal with this.

Speaker #4: Plans. And this is not completely new. This is not a completely new phenomenon in general. So this is a little bit what I see for the moment.

Speaker #4: We do not see big upticks in inflation. But there's quite some uncertainty in markets. And we have to deal with this.

Jolanda Poots-Bijl: Matthew, your second question on the quick commerce. We are closely monitoring the fast delivery market, and we, for example, conducted pilots in the Netherlands in a few stores. In the Netherlands, we see that this market is not yet very large. The disadvantage of this market is that the demand for fast delivery is largely concentrated in those areas where the floor pressure in our stores is already high. We will continue to monitor and conduct tests when necessary. If we see that our customers are seeking for that, a quick delivery in those areas, we will respond to that accordingly. Very clear. Thank you both.

Speaker #7: on quick commerce. We are closely monitoring the fast delivery market. And we, for example, conducted pilots in the Netherlands in a few stores. But in the Netherlands, we see that this market is not yet very large.

Speaker #7: And the disadvantage of this market is that the demand for fast delivery is largely concentrated in those areas where the floor pressure in our stores is already high.

Speaker #7: So we will continue to monitor and conduct tests when necessary and if we see that our customers are seeking for that quick delivery in those areas, we will respond to that accordingly.

Speaker #11: Very clear. Thank you both.

JP O'Meara: Everybody, thank you for joining our call today. For those on the line, you didn't have an issue. For those on the webcast, apologies for that, and we will have it fixed on the replay later today.

Speaker #4: So everybody, thank you for joining our call today. For those on the line, you didn't have an issue. For those on the webcast, apologies for that.

Speaker #4: And we will have it fixed on the replay later today.

Frans Muller: Well, what is exactly the fix? To be very clear, J.P., the text is available. The recording will be available.

Speaker #10: What is exactly the fix to be very clear, JP? We make the text is available. The recording will be available.

JP O'Meara: Exactly.

Frans Muller: The PowerPoints are available for everybody who can read through later on. Is that the fix?

Speaker #4: Exactly.

Speaker #10: The PowerPoints are available for everybody who can review later on. Is that the fix? All right. Just to make sure that everybody has full access to our comments and data.

JP O'Meara: That is correct.

Frans Muller: All right. Yeah, just to make sure that everybody has full access to our comments and data.

JP O'Meara: Yep.

Frans Muller: Yep. Okay. Thank you very much.

Speaker #4: Yeah. And we'll see you guys on the road and many more roadshows ahead, Franz. Yeah?

JP O'Meara: We'll see you guys on the road and many more roadshows ahead, friends, yeah?

Frans Muller: Yeah. I will be talking to-

Jolanda Poots-Bijl: Thank you for joining.

Speaker #10: Yeah. I will be talking.

Speaker #7: Thank you for joining.

Frans Muller: We see a few people tomorrow in London as usual, huh?

Speaker #4: See a few people tomorrow in London, as usual.

Jolanda Poots-Bijl: Yes.

Frans Muller: All right. Okay. Take care. Bye-bye.

Speaker #7: Yes.

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Q1 2026 Koninklijke Ahold Delhaize NV Earnings Call

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Koninklijke Ahold Delhaize

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Q1 2026 Koninklijke Ahold Delhaize NV Earnings Call

Wednesday, May 6th, 2026 at 8:00 AM

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Koninklijke Ahold Delhaize

Earnings