Ahold Q1 Sales Down 1.3%
Price investments related to the roll-out of the program continue to impact margins and sales, with improvements expected later in the year. Ahold said they remain vigilant about the economic environment and rising food prices.
09/05/08 Retail giant Ahold has reported consolidated net sales of €7.5 billion for the first quarter ending April 20, 2008. Compared to the first quarter of 2007, net sales decreased by 1.3% but increased by 6.8% at constant exchange rates.
In Europe, market conditions remained favorable. In the United States, the Value Improvement Program at Stop & Shop and Giant-Landover is on track. Price investments related to the roll-out of the program continue to impact margins and sales, with improvements expected later in the year. Ahold said they remain vigilant about the economic environment and rising food prices.
Stop & Shop / Giant-Landover net sales increased 1.3% to $5.1 billion. Net sales included $56 million of sales to Tops. Prior to its disposal, such sales were recorded as inter-company sales. Identical sales increased 1.2% at Stop & Shop (0.2% excluding gasoline net sales) and decreased 1.5% at Giant-Landover (1.6% excluding gasoline net sales), impacted by lower pharmacy sales. Comparable sales increased 1.6% at Stop & Shop and decreased 1.2% at Giant-Landover.
Giant-Carlisle net sales increased 9.2% to $1.4 billion. Identical sales increased 5.7% (3.7% excluding gasoline net sales). Comparable sales increased 6.7%.
Albert Heijn net sales increased 13.5% to €2.7 billion. Net sales at Albert Heijn supermarkets increased 13.6% to €2.5 billion. Identical sales at Albert Heijn supermarkets increased 11.3%.
Albert / Hypernova (Czech Republic and Slovakia) net sales increased 18.0% to €512 million (7.9% at constant exchange rates). Identical sales increased 7.8%.
Schuitema has been classified as a discontinued operation as of the first quarter of 2008. On April 23, 2008, Ahold announced that it had reached agreement on the sale of its 73.2% interest in Schuitema N.V. to private equity firm CVC Capital Partners. Schuitema has been classified as a discontinued operation as of the first quarter of 2008. Ahold's unconsolidated joint venture JMR continues to be classified as a discontinued operation.
