Ahold Sales Up 3.9%

Operating income was EUR 262 million, EUR 26 million higher than in the same period last year. Retail operating income was EUR 285 million, a retail operating margin of 4.9% compared to 4.8% in the same period last year.

20/11/08 Retail giant Ahold has published its interim financial report for the first three quarters of 2008. "Underlying retail operating margin guidance for the year remains unchanged at 4.8%- 5.3%."

Net sales were EUR 5.8 billion, up 3.9% from the same period last year. At constant exchange rates, net sales increased by 7.6%. 
 
Operating income was EUR 262 million, EUR 26 million higher than in the same period last year. Retail operating income was EUR 285 million, a retail operating margin of 4.9% compared to 4.8% in the same period last year. Corporate Center costs were EUR 23 million for the quarter, down EUR 3 million from the same period last year.
 
Net income was EUR 195 million, down EUR 19 million compared to the same quarter last year, reflecting higher income taxes and lower income from joint ventures.
 
Cash flow before financing was EUR 47 million, EUR 322 million lower than in the same period last year, primarily as a result of higher income taxes paid, higher capital expenditures (related to both remodeling at Giant-Landover and converting former Schuitema stores into the Albert Heijn format), and lower interest received.
 
Net sales were EUR 19.1 billion, up 0.4% from the same period last year. At constant exchange rates, net sales increased by 7.2%.
 
Operating income was EUR 833 million, EUR 10 million higher than in the same period last year. Retail operating income was EUR 902 million, a retail operating margin of 4.7% compared to 4.9% in the same period last year. Corporate Center costs were EUR 69 million, down EUR 18 million from the same period last year.
 
Net income was EUR 794 million, down EUR 1.9 billion compared to the same period last year, which included a EUR 2 billion gain on divestments.
 
Cash flow before financing was EUR 953 million, EUR 5.1 billion lower than in the same period last year which included EUR 5.2 billion proceeds from the divestment of U.S. Foodservice and the Company's operations in Poland.

Ahold CEO John Rishton said "We delivered a solid performance in our third quarter. I was particularly pleased with the increase in identical sales at Stop & Shop and Giant-Landover as a result of the actions we have taken under the Value Improvement Program over the last two years. 
 
"The company has a healthy balance sheet and is well-positioned to offer value to our customers in the current economic environment. The price investments made in recent years have strengthened the competitive position of all our banners, but we remain vigilant and will respond to changes in consumer and competitor behavior.

For the third quarter, net sales of USD 3.9 billion at Stop & Shop/Giant-Landover were up 4.4% compared to the same quarter last year. Net sales included USD 14 million of sales to Tops (prior to its divestment, such sales were recorded as inter-company sales). Identical sales were up 4.6% at Stop & Shop (3.8% excluding gasoline net sales) and up 0.7% at Giant-Landover (0.6% excluding gasoline net sales), despite lower pharmacy sales. Operating income was USD 167 million (or 4.3% of net sales), up USD 17 million from the same period last year.
 
Year-to-date, net sales of USD 13.1 billion were up 2.3% compared with the same period last year. Net sales included USD 99 million of sales to Tops. Identical sales were up 2.5% at Stop & Shop (1.5% excluding gasoline net sales) and down 0.9% at Giant-Landover (1.0% excluding gasoline net sales). Operating income was USD 494 million (or 3.8% of net sales), down USD 45 million from the same period last year.
 
For the third quarter, net sales of USD 1.1 billion at Giant-Carlisle were up 11.8% compared to the same quarter last year. Identical sales were up 8.0% (5.4% excluding gasoline net sales). Operating income was USD 50 million (or 4.6% of net sales), up USD 8 million compared to the same period last year.
 
Year-to-date, net sales of USD 3.6 billion were up 10.7% compared with the same period last year. Identical sales were up 6.8% (4.3% excluding gasoline net sales). Operating income was USD 173 million (or 4.8% of net sales), up USD 8 million compared to the same period last year.   
 
For the third quarter Albert Heijn net sales of EUR 2 billion were up 12.2% compared to the same quarter last year. Net sales increased at Albert Heijn supermarkets by 12.6% to EUR 1.9 billion. Identical sales at Albert Heijn supermarkets increased 8.3%. Operating income was EUR 141 million (or 7.0% of net sales), up EUR 9 million from the prior year, primarily due to lower pension charges.
 
Year-to-date, net sales of EUR 6.8 billion were up 13.3% compared to the same period last year. Identical sales at Albert Heijn supermarkets were up 10.5%. Operating income was EUR 468 million (or 6.9% of net sales), up EUR 56 million from the same period last year.