SOURCE: Ahold NV

August 01, 2008 00:50 ET

Ahold Trading Statement Q2 2008

AMSTERDAM, NETHERLANDS--(Marketwire - August 1, 2008) -


Amsterdam, the Netherlands - Ahold today announced consolidated net sales of EUR 5.8 billion for the second quarter ending July 13, 2008. Compared to the second quarter of 2007, net sales decreased by 0.8% but increased by 7.3% at constant exchange rates.

In Europe and the United States, sales growth was supported by investments in price positioning and strong promotional activities in all markets.

Underlying retail operating margin guidance for the year remains unchanged at 4.8-5.3%.

Sales performance

Stop & Shop / Giant-Landover

  * The roll-out of the Value Improvement Program remains on track,
    now expanding beyond price repositioning to marketing and
    branding.
  * Net sales increased 1.7% to USD 4.0 billion.
  * Net sales included USD 29 million of sales to Tops. Prior to its
    disposal, such sales were recorded  as inter-company sales.
  * Identical sales increased 2.2% at Stop & Shop (1.0% excluding
    gasoline net sales) and decreased  1.5% at Giant-Landover (1.7%
    excluding gasoline net sales), impacted by lower pharmacy sales.
  * Comparable sales increased 2.4% at Stop & Shop and decreased 1.4%
    at Giant-Landover.

Giant-Carlisle

  * Net sales increased 11.5% to USD 1.1 billion.
  * Identical sales increased 7.0% (4.1% excluding gasoline net
    sales).
  * Comparable sales increased 7.7%.

Albert Heijn

  * Net sales increased 14.2% to EUR 2.1 billion.
  * Net sales at Albert Heijn supermarkets increased 14.4% to EUR 1.9
    billion.
  * Identical sales at Albert Heijn supermarkets increased 11.8%.

Albert / Hypernova (Czech Republic and Slovakia)

  * Net sales increased 20.2% to EUR 411 million (4.6% at constant
    exchange rates).
  * Identical sales increased 5.6%.

Unconsolidated joint venture - ICA

  * Net sales increased 8.8% to EUR 2.4 billion (9.1% at constant
    exchange rates


Net sales per segment


                 Q2     Q2 2007      %       HY 2008   HY 2007      %
(in millions)   2008               Change                        Change
All segments
(in euros)

Stop & Shop /
Giant-Landover  2,570     2,921    (12.0%)     5,977     6,775   (11.8%)
Giant-Carlisle    715       741     (3.5%)     1,651     1,724    (4.2%)
Ahold USA       3,285     3,662    (10.3%)     7,628     8,499   (10.2%)

Albert Heijn    2,087     1,828      14.2%     4,770     4,191     13.8%
Albert /
Hypernova         411       342      20.2%       923       776     18.9%
Ahold Europe    2,498     2,170      15.1%     5,693     4,967     14.6%

Ahold Group     5,783     5,832     (0.8%)    13,321    13,466    (1.1%)

Unconsolidated
joint venture
- ICA           2,433     2,236       8.8%     4,699     4,281      9.8%
Average U.S.
dollar
exchange rate
(EUR per USD)  0.6403    0.7397    (13.4%)    0.6526    0.7508   (13.1%)


U.S. segments
(in U.S.
dollars)

Stop & Shop /
Giant-Landover  4,013     3,947       1.7%     9,159     9,025      1.5%
Giant-Carlisle  1,117     1,002      11.5%     2,531     2,297     10.2%

On June 30, 2008, Ahold completed the sale of its 73.2% interest in Schuitema N.V. to private equity firm CVC Capital Partners. Schuitema was classified as a discontinued operation as of the first quarter of 2008. Ahold's unconsolidated joint venture JMR continues to be classified as a discontinued operation.


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. Net sales, at constant
    exchange rates, exclude the impact of using different currency
    exchange rates to translate the financial information of certain
    Ahold subsidiaries or joint ventures to euros. Ahold's management
    believes this measure provides 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 2008 are as follows:

    First Quarter             December 31, 2007 through April 20,
                              2008
    Second Quarter            April 21 through July 13, 2008
    Third Quarter             July 14 through October 5, 2008
    Fourth Quarter            October 6 through December 28, 2008

Cautionary 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, the expected underlying retail operating margin for full year 2008 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, rising food prices, 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., which is Ahold's statutory name, 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 securities law.


Please open the link below for the full version of the Trading Statement Q2 2008:

http://hugin.info/130711/R/1239726/265616.pdf



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