Amsterdam, the Netherlands - Ahold today announced consolidated net sales of €6.6 billion for the fourth quarter
ended December 30, 2007. Compared to the fourth quarter of 2006, net sales increased by 0.2% and increased by 6.5% at constant exchange rates. For the full year, consolidated net sales of €28.2 billion were 1.2% higher compared to 2006. At constant exchange rates, consolidated net sales were up 6.1%.
In Europe, market conditions were favorable. In the United States, the turbulent economic environment did not have a significant impact on local market conditions. Price investments related to the further roll-out of the Value Improvement Program, launched in September 2006 at Stop & Shop and Giant-Landover, will continue to impact margins.
For full year 2007, Ahold reiterates that total retail operating margin will be at the higher end of its 4.0% to 4.5% guidance.
Sales performance
Stop & Shop / Giant-Landover
Fourth Quarter
- Net sales increased 2.0% to $3.9 billion.
- Identical sales increased 2.7% at Stop & Shop (1.2% excluding gasoline net sales). Identical sales decreased 0.5% at Giant-Landover, impacted by lower pharmacy sales.
- Comparable sales increased 3.1% at Stop & Shop and decreased 0.3% at Giant-Landover.
Full Year
- Net sales increased 1.5% to $16.7 billion.
- Identical sales increased 1.3% at Stop & Shop (0.6% excluding gasoline net sales) and decreased 1.1% at Giant-Landover.
- Comparable sales increased 1.7% at Stop & Shop and decreased 0.9% at Giant-Landover.
Giant-Carlisle
Fourth Quarter
- Net sales increased 8.6% to $1 billion, due in part to the acquisition of the Clemens Markets stores in the fourth quarter of 2006.
- Identical sales increased 4.8% (3.8% excluding gasoline net sales).
- Comparable sales increased 5.7%.
Full Year
- Net sales increased 13.0% to $4.3 billion, due in part to the acquisition of the Clemens Markets stores in the fourth quarter of 2006.
- Identical sales increased 3.7% (3.2% excluding gasoline net sales).
- Comparable sales increased 5.1%.
Albert Heijn
Fourth Quarter
- Net sales increased 12.9% to €2 billion, due in part to the acquisition of the Konmar stores in the fourth quarter of 2006.
- Net sales at Albert Heijn supermarkets increased 12.6% to €1.8 billion.
- Identical sales at Albert Heijn supermarkets increased 9.3%.
Full Year
- Net sales increased 12.1% to €8 billion, due in part to the acquisition of the Konmar stores in the fourth quarter of 2006.
- Net sales at Albert Heijn supermarkets increased 12.3% to €7.3 billion.
- Identical sales at Albert Heijn supermarkets increased 7.9%.
Albert / Hypernova (Czech Republic and Slovakia)
Fourth Quarter
- Net sales increased 16.7% to €427 million (10.8% at constant exchange rates).
- Identical sales increased 10.1%.
Full Year
- Net sales increased 12.5% to €1.6 billion (9.1% at constant exchange rates).
- Identical sales increased 6.8%.
Schuitema
Fourth Quarter
- Net sales increased 3.1% to €773 million.
- Identical sales increased 2.0%.
Full Year
- Net sales increased 2.4% to €3.3 billion.
- Identical sales increased 1.3%.
Unconsolidated joint venture - ICA
Fourth Quarter
- Net sales increased 22.1% to €2.4 billion, due in part to ICA's acquisition of the full ownership of Rimi Baltic AB in December 2006 (21.9% at constant exchange rates).
Full Year
- Net sales increased 22.2% to €8.9 billion, due in part to ICA's acquisition of the full ownership of Rimi Baltic AB in December 2006 (22.0% at constant exchange rates).
Net sales per segment
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(in millions) |
Q4 2007 |
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Q4 2006 |
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% Change |
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FY 2007 |
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FY 2006 |
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% Change |
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All segments (in euros) |
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Stop & Shop / Giant-Landover |
2,700 |
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2,975 |
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(9.2%) |
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12,192 |
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13,089 |
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(6.9%) |
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Giant-Carlisle |
712 |
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737 |
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(3.4%) |
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3,145 |
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3,032 |
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3.7% |
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U.S. retail |
3,412 |
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3,712 |
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(8.1%) |
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15,337 |
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16,121 |
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(4.9%) |
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Albert Heijn |
2,001 |
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1,773 |
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12.9% |
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7,998 |
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7,136 |
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12.1% |
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Albert / Hypernova |
427 |
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366 |
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16.7% |
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1,558 |
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1,385 |
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12.5% |
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Schuitema |
773 |
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750 |
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3.1% |
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3,259 |
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3,184 |
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2.4% |
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Europe retail |
3,201 |
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2,889 |
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10.8% |
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12,815 |
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11,705 |
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9.5% |
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Ahold Group |
6,613 |
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6,601 |
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0.2% |
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28,152 |
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27,826 |
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1.2% |
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Unconsolidated joint venture - ICA |
2,385 |
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1,953 |
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22.1% |
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8,900 |
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7,285 |
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22.2% |
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Average U.S. dollar exchange rate (EUR per USD) |
0.6894 |
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0.7747 |
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(11.0%) |
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0.7307 |
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0.7964 |
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(8.2%) |
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U.S. segments (in U.S. dollars)
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Stop & Shop / Giant-Landover |
3,917 |
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3,840 |
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2.0% |
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16,689 |
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16,438 |
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1.5% |
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Giant-Carlisle |
1,033 |
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951 |
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8.6% |
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4,307 |
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3,812 |
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13.0% |
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On November 6, 2006, Ahold announced its intention to divest U.S. Foodservice, its retail activities in Slovakia and Poland, the remaining Tops operations in New York and Pennsylvania, and its stake in JMR. Poland, Tops, U.S. Foodservice and JMR are classified as discontinued operations. On July 2 and 3, 2007, Ahold completed the sale of its Polish retail and U.S Foodservice operations, respectively. On November 21, 2007, Ahold announced its decision to continue to operate in Slovakia. On December 3, 2007, Ahold completed the sale of Tops.
Ahold Press Office: +31 (0)20 509 5291
Notes
The net sales figures presented in this trading statement are preliminary and unaudited.
Definitions
- Identical sales: net sales from exactly the same stores in local currency for the comparable period.
- Comparable sales: identical sales plus net sales from replacement stores in local currency.
- Constant exchange rates: excludes the impact of using different currency exchange rates to translate the financial information of certain of Ahold's subsidiaries or joint ventures to euros. For comparison purposes, the financial information of the previous year or quarter is adjusted using the average currency exchange rates for the current year or quarter in order to understand this currency impact.
Non-GAAP financial measures
This trading statement includes the following non-GAAP financial measures:
- Net sales, at constant exchange rates. In certain instances, net sales are presented at constant exchange rates or are presented in local currencies. Ahold's management believes these measures provide a better insight into the operating performance of Ahold's foreign subsidiaries or joint ventures.
- Identical sales, excluding gasoline net sales. Because gasoline prices have experienced greater volatility than food prices, Ahold's management believes that by excluding gasoline net sales, this measure provides a better insight into the effect of gasoline net sales on Ahold's identical sales.
Ahold's financial year
- Ahold's reporting calendar is based on 13 periods of four weeks. The quarters in 2007 are as follows:
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First Quarter |
January 1 to April 22, 2007 |
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Second Quarter |
April 23 to July 15, 2007 |
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Third Quarter |
July 16 to October 7, 2007 |
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Fourth Quarter |
October 8 to December 30, 2007 |
In case of any discrepancy between the English and Dutch versions of this press release, the English version will prevail.
Forward-looking language notice
This press release includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those included in such statements. These forward-looking statements include, but are not limited to, statements as to the expected impact of the Value Improvement Program on Stop & Shop's and Giant-Landover's margins, the expected total retail operating margin for full year 2007 and Ahold's intention to divest its stake in JMR. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ahold's ability to control or estimate precisely, such as the effect of general economic or political conditions, fluctuations in exchange rates or interest rates, increases or changes in competition, Ahold's ability to implement and complete successfully its plans and strategies, the benefits from and resources generated by Ahold's plans and strategies being less than or different from those anticipated, changes in Ahold's liquidity needs, the actions of competitors and third parties and other factors discussed in Ahold's public filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Koninklijke Ahold N.V. does not assume any obligation to update any public information or forward-looking statements in this release to reflect subsequent events or circumstances, except as may be required by applicable securities law.
Please open the link below for the full version of the Trading Statement Q4 2007:
