Ahold Delhaize Expects €250 Million Hit After Cyberattack Knocks Brands Offline

Ahold Delhaize expects its fourth-quarter revenue to drop by up to €250 million after a cyberattack forced the company to take several systems offline. The incident disrupted multiple retail brands, leaving shoppers unable to place online orders or find certain items on store shelves.

The parent company reported that the attack will lower its fourth-quarter operating profits by between €75 million and €100 million. Chief Executive Officer Frans Muller stated that a cybersecurity incident impacted business operations in October. Most of the disruption was contained within two weeks, but work continues to fully restore normal operations.

In the Netherlands, the attack knocked out websites, apps, and loyalty programs for Albert Heijn, Gall & Gall, and Etos. Albert Heijn could not deliver online orders, stock shelves, or show correct prices on in-store electronic price tags for nearly two weeks. Shoppers in stores found that electronic shelf labels showed last year's or last week's promotions instead of current prices, though the correct prices were charged at checkout. Because the loyalty programs were down, customers missed out on personal discounts, prompting Albert Heijn to ask shoppers to keep their receipts so the company could pay them back.

The supermarket chain resumed limited grocery deliveries on a Friday morning after suspending them for nearly two weeks. Delivery capacity started at only a third of its usual level, and customer service phone lines experienced longer wait times. Albert Heijn stated that it is offering compensation through various channels to customers whose grocery orders were canceled.

Dutch police have launched a criminal investigation into the cyberattack. Ahold Delhaize filed a police report about a week after the incident occurred, though police officials noted they do not comment on ongoing investigations.

Despite the cyber incident, Ahold Delhaize reported a strong third quarter with revenue of €23.1 billion, which is a 1.9 percent increase compared to the previous year. The company's operating profit for that quarter rose by over 7 percent to €976 million. However, the fourth-quarter disruption forced the company to update its full-year outlook. Ahold Delhaize now expects its operating margin to approach 4.0 percent and its free cash flow to drop to around €2.1 billion.

Summary

A major cyberattack on parent company Ahold Delhaize disrupted retail operations across multiple brands, leaving store shelves empty and halting online deliveries for nearly two weeks. The incident has forced the company to lower its profit and revenue outlook for the fourth quarter, highlighting the substantial financial and operational risks that cyber incidents pose to large retail networks.