The Ahold Delhaize supermarket group will start buying 1 billion euros in its own shares. The buyback program was announced in early November and must be completed before the end of this year.
With the purchase of own shares, the parent company of Albert Heijn and webshop bol.com intends to return excess capital to the shareholders. By reducing the number of shares outstanding, the distribution of profits, the dividend, has to be split among fewer shares in order for the dividend to increase. In addition, the stock market price can rise because shares are bought up.
Ahold Delhaize benefited greatly from the corona crisis last year as many people started hoarding food during the pandemic. It was also impossible to go to the food service because of lockdowns, which meant more was being spent in the supermarket.