SOURCE: Ahold NV

January 21, 2010 01:28 ET

Ahold Trading Statement Q4 and 2009

AMSTERDAM, NETHERLANDS--(Marketwire - January 21, 2010) - Ahold today announced consolidated net sales of EUR 6.8 billion for the fourth quarter ending January 3, 2010. Net sales increased by 3.4% and increased by 11.0% at constant exchange rates compared to the fourth quarter of 2008. For the full year, net sales were EUR 27.9 billion, 8.9% higher compared to 2008. At constant exchange rates, net sales for the full year were up 6.0%.

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% at constant exchange rates on an adjusted basis. Net sales for the full year 2009 were up 3.9% 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.

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Sales performance

Stop & Shop/Giant-Landover

  Fourth Quarter
  * Net sales increased 10.5% to $4.4 billion. Net sales increased 1.8%
    when compared to the adjusted fourth quarter 2008 sales.
  * Identical sales increased 1.0% at Stop & Shop (decreased 0.4%
    excluding  gasoline) and increased 2.4% at Giant-Landover
    (1.6% excluding gasoline).
  * Comparable sales increased 1.3% at Stop & Shop and increased 2.9% at
    Giant-Landover.

  Full Year
  * Net sales increased 4.6% to $17.9 billion. Net sales increased 2.6%
    when compared to the adjusted full year 2008 sales.
  * Identical sales increased 1.6% at Stop & Shop (2.2% excluding gasoline)
    and increased 3.0% at Giant-Landover (2.6% excluding gasoline).
  * Comparable sales increased 2.1% at Stop & Shop and increased 3.5% at
    Giant-Landover.

Giant-Carlisle

  Fourth Quarter
  * Net sales increased 15.0% to $1.3 billion. Net sales increased 6.0%
    when compared to the adjusted fourth quarter 2008 sales.
  * Identical sales increased 2.8% (1.0% excluding gasoline).
  * Comparable sales increased 4.0%.

  Full Year
  * Net sales increased 4.6% to $5.0 billion. Net sales increased 2.6%
    when compared to the adjusted full year 2008 sales.
  * Identical sales increased 0.3% (2.2% excluding gasoline).
  * Comparable sales increased 1.3%.

Albert Heijn

  Fourth Quarter
  * Net sales increased 12.3% to EUR 2.5 billion. Net sales increased 3.0%
    when compared to the adjusted fourth quarter 2008 sales.
  * Net sales at Albert Heijn supermarkets were EUR 2.3 billion, up 12.4%
    compared to last year. Net sales at Albert Heijn supermarkets increased
    3.2% compared to the adjusted fourth quarter 2008 sales.
  * Identical sales at Albert Heijn supermarkets increased 1.2%.

  Full Year
  * Net sales increased 9.7% to EUR 9.8 billion. Net sales increased 7.3%
    when compared to the adjusted full year 2008 sales.
  * Net sales at Albert Heijn supermarkets were EUR9.0 billion, up 9.7%
    compared to last year. Net sales at Albert Heijn supermarkets increased
    7.4% compared to the adjusted full year 2008 sales mainly due to the
    conversion of former Schuitema stores into the Albert Heijn format in
    the second half of 2008.
  * Identical sales at Albert Heijn supermarkets increased 1.7%.

Albert/Hypernova (Czech Republic and Slovakia)

  Fourth Quarter
  * Net sales decreased 1.8% to EUR 431 million (0.1% at constant exchange
    rates). When compared to the adjusted fourth quarter 2008 sales, net
    sales decreased 7.0% at constant exchange rates. Sales were negatively
    impacted by store closures as part of our restructuring program.
  * Identical sales decreased 1.4% (2.3% excluding gasoline).

  Full Year
  * Net sales decreased 5.0% to EUR 1.7 billion (0.6% at constant exchange
    rates). When compared to the adjusted full year 2008 sales, net sales
    decreased 2.4% at constant exchange rates.
  * Identical sales decreased 1.2% (1.2% excluding gasoline).

Unconsolidated joint venture - ICA

  Fourth Quarter
  * Net sales increased 0.8% to EUR 2.4 billion. At constant exchange
    rates, net sales increased 0.1%.

  Full Year
  * Net sales decreased 5.7% to EUR 8.9 billion. At constant exchange
    rates, net sales increased 1.7%.

Net sales per segment

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                 Q4 2009    Q4 2008*    %      FY 2009    FY 2008*    %
(in millions)   (13 weeks) (12 weeks) Change  (53 weeks) (52 weeks) Change
---------------------------------------------------------------------------
All segments
(in euros)

Stop & Shop/
 Giant-Landover      3,010    3,067    (1.9)%    12,839    11,666    10.1%

Giant-Carlisle         869      851     2.1%      3,560     3,238     9.9%

Ahold USA            3,879    3,918    (1.0)%    16,399    14,904    10.0%


Albert Heijn         2,491    2,219    12.3%      9,843     8,972     9.7%

Albert/Hypernova       431      439    (1.8)%     1,683     1,772    (5.0)%


Ahold Europe         2,922    2,658     9.9%     11,526    10,744     7.3%

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Ahold Group          6,801    6,576     3.4%     27,925    25,648     8.9%

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Unconsolidated joint
 venture - ICA**     2,375    2,356     0.8%      8,919     9,460    (5.7)%

Average U.S. dollar
 exchange rate
 (euro per U.S.
 dollar)            0.6767   0.7625   (11.3)%    0.7194    0.6828     5.4%

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

Stop & Shop/
 Giant-Landover      4,443    4,022    10.5%     17,867    17,074     4.6%

Giant-Carlisle       1,282    1,115    15.0%      4,958     4,738     4.6%

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*  Due to changes in accounting policies applied retrospectively,
   comparative information has been changed as explained further under
   Notes to this Trading Statement.

** The quarter and financial year for the ICA unconsolidated joint venture
   corresponds to the calendar quarter and year respectively, and
   accordingly there was no 53rd week impact.

Notes

The net sales figures presented in this trading statement are preliminary
and unaudited.

Changes in accounting policies

  * As of 2009, Ahold has applied IFRIC 13 "Customer Loyalty Programs",
    which addresses accounting by entities that grant customer loyalty
    award credits to their customers. The adoption of IFRIC 13, which
    Ahold has applied retrospectively, resulted in a EUR 4 million
    decrease in net sales at Albert
    Heijn for the fourth quarter of 2008 (Full year 2008: EUR 14 million).
  * As of 2009, rent income earned by certain real estate subsidiaries is
    netted against the related expense, whereas previously it was included
    in net sales. Comparative information has been changed accordingly,
    with the effect that net sales for the fourth quarter of 2008 decreased
    by EUR 15 million (Full year 2008: EUR 60 million), predominantly at
    Albert Heijn.

Definitions

  * Identical sales: net sales from exactly the same stores in local
    currency for the comparable period (comparable period corresponds to
    the adjusted fourth quarter 2008 and the adjusted full year 2008
    respectively).
  * 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
    Ahold 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 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.
  * Net sales in local currency. In certain instances, net sales are
    presented in local currency. Ahold's management believes this measure
    provides a better insight into the operating performance of Ahold's
    foreign subsidiaries.
  * 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 growth of its identical store sales.
  * Adjusted fourth quarter 2008 sales. Adjusted fourth quarter 2008 sales
    include net sales in the fourth quarter of 2008 plus net sales in the
    first week of 2009. Ahold's management believes that this measure
    provides an insight into the impact of an additional week when net
    sales are compared to the same quarter in the previous year.
  * Adjusted full year 2008 sales. Adjusted full year 2008 sales include
    net sales in full year 2008 plus net sales in the first week of 2009.
    Ahold's management believes that this measure provides an insight into
    the impact of an additional week when net sales are compared to the
    previous year.

Other

  * Ahold's financial year 2009 comprised an additional 53rd week. This
    follows from our use of a 364-day calendar (13 four-week periods per
    year) which requires an extra week in certain years in order to align
    our year end as closely as possible to the calendar year.
  * In the future, Ahold will dispense with the quarterly trading
    statements and only issue an annual trading statement following its
    fourth quarter.

Please open the link below for the full version of the Trading Statement Fourth Quarter and Year 2009:

Ahold Trading Statement Q4 and 2009: http://hugin.info/130711/R/1375458/337468.pdf

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