Ahold : Ahold publishes second quarter and half year 2013 results
· Sales of €7.8 billion (up 3.0% at constant exchange rates)
· Underlying operating income €338 million (up 5.4% at constant exchange
· Underlying operating margin 4.4% (Q2 2012: 4.2%)
· Operating income €325 million (up €1 million)
· Net income €206 million (down 17.3%, largely due to the sale of ICA)
· Free cash flow of €254 million, including €38 million payment related to
Zaandam, the Netherlands - Ahold today published its interim report for the
second quarter and halfyear of 2013.
CEO Dick Boer said: "Our business continued to perform well, both in Europe
and the United States.We were able to grow sales by 3.0% at constant exchange
rates with ongoing high levels ofpromotional activity. Underlying operating
income increased by 5.4% at constant exchange rates,reflecting a strong
underlying operating margin of 4.4%. Net income was impacted by the sale of
ourstake in ICA earlier this year. Our free cash flow continues to be strong
at €254 million during thequarter.
"In the United States we saw modest sales growth of 2.0% with an ongoing low
level of inflation andvolumes remaining under pressure in the food retail
sector. We are pleased that we continue to gainmarket share. Underlying
operating margin was 4.2%, supported by improved sourcing andoperating
"In the Netherlands sales grew by 5.6%, mainly driven by new stores and
ongoing strong salesgrowth in our online business. Albert Heijn successfully
converted another four former C1000/Jumbostores, bringing the total to 22 and
continued to gain market share. Our growth initiatives remain ontrack with 16
well-performing stores now open in Belgium and with the completion of the
nationwiderollout of bol.com pick-up points in our Albert Heijn stores.
Underlying operating margin improved to5.5%, as Albert Heijn's strong
performance more than offset additional pension charges related todecreased
"In the current economic environment we remain cautious in our outlook for the
balance of the year,as we expect customers to be focused on value and volumes
to remain under pressure. We are wellon track with our cost saving program
and are committed to our Reshaping Retail strategy.
"We remain committed to an efficient capital structure, having already
increased our share buybackprogram to two billion by the end of 2014. We
expect to make further announcements in this regardbefore the end of this
"The new leadership structure we announced this quarter, with an Executive
Committee thatrepresents Ahold's business and functional leaders at the
highest level, will simplify the company'sgovernance structure and
decision-making process and will enable us to accelerate our ReshapingRetail
Click here for more information, and to watch a video with CEO Dick Boer.
Ahold Press Office: +31 88 659 5343
Ahold Investor Relations: +31 88 659 5213
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Ahold Q2 interim report
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Source: Ahold via Thomson Reuters ONE
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