Inside This Issue - News
Ahold gets lift from U.S. unit
September 3rd, 2012
AMSTERDAM – A strong performance from its United States food retail operations helped boost net profit at Royal Ahold NV by 25% during the second quarter. A weaker performance by its flagship Albert Heijn chain in the Netherlands, however, cut into operating profit.
Sales in the U.S. increased by 3.4% to $6 billion, with market share gains in all divisions. Identical-store sales, meanwhile, grew by 2.2%.
Management considered the top-line results in the U.S. a solid performance in the face of challenging conditions. "We saw ongoing high levels of promotional activity in both the United States and the Netherlands, with retail price inflation coming down, particularly in the United States," said chief executive officer Dick Boer. "Our businesses in the United States achieved strong margins through stringent cost control."
Boer added that he expects market conditions to remain difficult and is wary of rising food commodity costs, especially in the U.S. He also expressed satisfaction with the conversion of 15 former Genuardi’s supermarkets to the Giant Food Stores banner. "We are confident that we are well on track to deliver on our strategy, and we will continue to invest in growth."