Ahold Third Quarter 2007 Earnings Up 1.1%
Operating income was €255 million, €44 million higher than last year. Retail operating income was €282 million, an operating margin of 4.5% compared to 4% in the same period last year. Corporate Center costs were €23 million for the quarter.
21/11/07 Ahold has reported that net sales for the third-quarter were €6.3 billion, up 1.1% from the same period last year. At constant exchange rates, net sales increased by 5.6%.
Operating income was €255 million, €44 million higher than last year. Retail operating income was €282 million, an operating margin of 4.5% compared to 4% in the same period last year. Corporate Center costs were €23 million for the quarter.
Net income was €214 million, up €4 million from the same period last year.
Cash flow before financing was €369 million positive for the quarter, €164 million better than the same period last year.
John Rishton, President and CEO, said: "We continue to make good progress with our strategy. In the United States, our Value Improvement Program at Stop & Shop and Giant-Landover remains on track, with almost half the program completed. The progress made so far has enabled us to accelerate the program and we now expect to complete 70% by year-end, up from the previous target of 50%. In October, we announced a major three-year remodeling program of more than half of our Giant-Landover stores and the agreement to sell the remainder of our Tops operation.
"In Europe, Albert Heijn continues to show impressive performance. In the Czech Republic, we are making significant price investments as part of our repositioning strategy. In Slovakia, we have decided to continue operating as a result of improved performance and the current difficult financial markets.
"For our total core retail operations, we expect the operating margin for the full-year 2007 to be at the higher end of our previous guidance of 4% to 4.5%.
"Following the capital repayment in August and the €1 billion share buyback program completed yesterday, we have returned a total of €4 billion to shareholders this year. In addition, we plan to reinstate an annual dividend on Ahold's common shares. The proposed dividend for the 2007 financial year will be announced with our full-year results on March 6, 2008."
