Dutch grocer can afford $7 bln U.S. shopping spree

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Dutch grocer can afford $7 bln U.S. shopping spree
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A transatlantic shopping spree can be fun with a full wallet, like that of Dutch grocer Ahold Delhaize. Some U.S. assets looking for a home might fit the bill for an acquisition, writes aimeedonnellan.

Food retailer Ahold Delhaize met forecasts with a 3% rise in fourth-quarter core earnings on Feb. 12 helped by its Food Lion and Hannaford U.S. grocery chains and strong online sales.

Ahold, which generates two-thirds of its sales in the United States, forecast 2020 margins “broadly in line” with last year and mid-single-digit growth in underlying earnings per share. Overall underlying operating income rose to 765 million euros for the three months to Dec. 31 from 743 million euros. Sales rose 5% to 17.4 billion euros, helped by a strong dollar.

In the Benelux countries, where Ahold operates the dominant Albert Heijn supermarket chain, comparable sales rose 4.3%. Ahold said it had won market share for the first time in several quarters, as online sales continued a strong upward trend. By 0937 GMT on Feb. 19 shares in Ahold were up 5.7% at 23.83 euros since the grocer released its results on Feb. 12.

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