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COMPANY OF THE WEEK: Growth for Ahold in 4Q
(NETHERLANDS, 2/5/2010)
Ahold (Public, OTC; AHONY), the major international supermarket operator based in the Netherlands, has announced consolidated net sales of Euros 6.8 billion for the fourth quarter ending January 3, 2010. Net sales increased by 3.4 percent and increased by 11.0 percent at constant exchange rates compared to the fourth quarter of 2008. For the full year, net sales were Euros 27.9 billion, 8.9 percent higher compared to 2008. At constant exchange rates, net sales for the full year were up 6.0 percent.
Consolidated net sales in the fourth quarter and the full year of 2009 were positively impacted by an additional week compared with the previous year. Net sales in the fourth quarter 2009 increased by 2.1 percent at constant exchange rates on an adjusted basis. Net sales for the full year 2009 were up 3.9 percent at constant exchange rates on an adjusted basis.
Ahold delivered strong volume growth in all markets in the fourth quarter. Sales were impacted by deflation and trading down by customers while increased promotional activity continued.
The group's Albert Heijn operations in the Netherlands saw sales increase 12.3 percent to Euros 2.5 billons through the fourth quarter, helping the chain to a rise of 9.7 percent to Euros 9.8 billions of yearly net sales.
 In the US, Stop & Shop/Giant Landover recorded full-year sales growth of 4.6 percent to USD17.9 billions (Euros 12.6 billions), backed by a strong fourth quarter through which net sales improved by 10.5 percent to hit USD 4.4 billions (Euros 3.1 billions).
Elsewhere in the country, Giant-Carlisle sales increased by 15 percent to USD 1.3billions (Euros 916 millions) in the final quarter of 2009, helping the chain achieve 4.6 percent yearly sales growth to USD 5 billions (Euros 3.5billions).
However, Ahold's eastern European operation Albert/ Hypernova endured a difficult year, with net sales down 5 percent to Euros 1.7 billions. The group, which is based in the Czech Republic and Slovakia, saw fourth quarter sales fall 1.8 percent to Euros 431 millions.
 In December last year the company announced that Giant-Carlisle, a Division of Ahold USA, will expand its presence in Virginia by acquiring 25 stores from Ukrop’s Super Markets, Inc. The transaction that includes 25 stores, has an approximately price of USD 140 million.
John Rishton, CEO of Ahold, said, “This acquisition is part of Ahold’s profitable growth strategy. Ukrop’s is a great company with a strong heritage in an attractive market. We believe that Giant-Carlisle and Ukrop’s will be a strong combination."
The closing of the transaction is expected to take place in the first quarter of 2010 and is subject to customary conditions.
About Koninklijke Ahold N.V.
Koninklijke Ahold N.V., together with its subsidiaries, owns and operates supermarkets in the United States and Europe. It operates retail food stores, superstores, hypermarkets, supermarkets, home shopping, and convenience stores under the Stop & Shop/Giant-Landover, Giant-Carlisle, Albert Heijn, and Albert/Hypernova names.
The company also engages in the operation of specialty stores, drugstores, and wine and liquor stores under the Etos and Gall & Gall names. In addition, it provides online grocery delivery services. Further, the company finances, develops, and manages store sites and shopping centers in support of its retail operations. As of December 28, 2008, it operated 2,897 retail locations, as well as 919 real estate properties. The company was founded in 1887 and is headquartered in Amsterdam, the Netherlands with additional offices in the United States and Switzerland.
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Photos: Ahold
Information of the company:
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Address:
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Piet Heinkade 167 - 173
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City:
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Amsterdam
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State/ZIP:
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(1019 GM)
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Country:
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Netherlands
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Phone:
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+31 20 509 51 00
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Fax:
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+31 20 509 51 10
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E-Mail:
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info@ahold.com
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More about: 
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