Ahold Delhaize: to invest heavily in US supply chain
(CercleFinance.com) - Ahold Delhaize is investing 480 million dollars to transform and expand its supply chain operations on the East Coast of the US, the Dutch-based supermarket group said on Wednesday.
The investment is part of a new three-year strategy to move the US supply chain into a fully integrated, self-distribution model, said the retailer, which makes about 60% of its sales in the US.
The ongoing annual benefit on underlying operating income will be more than 100 million dollars, it added.
"We welcome this announcement because it is in line with the rationale that the Ahold Delhaize merger invests more (up to 3% of sales), if this is successful, as is the case," said analysts at Paris-based Invest Securities.
The stock is currently down 1.4% on Euronext Amserdam.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
The investment is part of a new three-year strategy to move the US supply chain into a fully integrated, self-distribution model, said the retailer, which makes about 60% of its sales in the US.
The ongoing annual benefit on underlying operating income will be more than 100 million dollars, it added.
"We welcome this announcement because it is in line with the rationale that the Ahold Delhaize merger invests more (up to 3% of sales), if this is successful, as is the case," said analysts at Paris-based Invest Securities.
The stock is currently down 1.4% on Euronext Amserdam.
Copyright (c) 2019 CercleFinance.com. All rights reserved.