Colruyt
Note: This is a daily stock update and the information stands true as of 17/12/25, 09:00 CET.
Company Update:
Colruyt’s H1 FY25/26 results were mixed, with slightly stronger-than-expected sales but weaker profitability. Reported revenue rose 4.5% year on year, while like-for-like sales growth stood at 2.1% excluding scope effects. Growth was primarily driven by the food segment, which increased 2.0% yoy and accounted for approximately 94% of group revenue. The health & well-being and non-food segment outperformed, delivering an 11% increase on a comparable basis.
Group operating profit declined 15.8% yoy to €213m, representing a margin contraction of 100bp and coming in around 7% below our expectations. The shortfall was largely due to higher wage costs, reflecting Belgium’s automatic wage indexation mechanism.
Management reiterated its full-year guidance, expecting operating and net results to be broadly in line with the prior financial year.
Expert Opinion:
The food retail competition in Belgium remains fierce and Colruyt's market share is edging down. Ahold keeps gaining market share at the expense of Colruyt and to a lesser extent of Carrefour. Valuation remains low with PE of 11x for 2025 and 10.7x for 2026 (the second cheapest stock in our coverage after Carrefour), the momentum is adverse. Our expert still likes Carrefour better. Interestingly, Apollo announced it was buying Prosol, the supplier and operator of Grand Frais, a small yet fast-growing food retail network in France. This may rekindle interest in the sector in general and for Carrefour in particular.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
Colruyt’s H1 FY25/26 results were mixed, with slightly stronger-than-expected sales but weaker profitability. Reported revenue rose 4.5% year on year, while like-for-like sales growth stood at 2.1% excluding scope effects. Growth was primarily driven by the food segment, which increased 2.0% yoy and accounted for approximately 94% of group revenue. The health & well-being and non-food segment outperformed, delivering an 11% increase on a comparable basis.
Group operating profit declined 15.8% yoy to €213m, representing a margin contraction of 100bp and coming in around 7% below our expectations. The shortfall was largely due to higher wage costs, reflecting Belgium’s automatic wage indexation mechanism.
Management reiterated its full-year guidance, expecting operating and net results to be broadly in line with the prior financial year.
Expert Opinion:
The food retail competition in Belgium remains fierce and Colruyt's market share is edging down. Ahold keeps gaining market share at the expense of Colruyt and to a lesser extent of Carrefour. Valuation remains low with PE of 11x for 2025 and 10.7x for 2026 (the second cheapest stock in our coverage after Carrefour), the momentum is adverse. Our expert still likes Carrefour better. Interestingly, Apollo announced it was buying Prosol, the supplier and operator of Grand Frais, a small yet fast-growing food retail network in France. This may rekindle interest in the sector in general and for Carrefour in particular.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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