AHOLD FY results

Ahold has this morning reported that full year profit rose to EUR915 million (USD1.1 billion) in 2006 from EUR159 million (USD197.6 million) in 2005, when earnings were impacted by one-offs. Sales rose to EUR44.9 billion (USD56.3 billion) from EUR44.5 billion (USD55.3 billion), while operating profit was EUR1.3 billion (USD1.6 billion), up from EUR248 million (USD308.2 million).

In Ahold’s home market the Netherlands its formats Albert Heijn with net sales of EUR7.1 billion (USD 9.4 billion) and Schuitema with net sales of EUR3.2 billion (USD 4.2 billion) generated 8.6% and 1.8% of net sales increases and positive like-for-like sales figures of 6.7% and 1.5%. On the contrary in the US retail segment only the Giant-Carlisle banner could generate positive net sales and comparative sales growth. Net sales growth of the Central Europe arena, not including the Polish market figures but including currency effects stood at 11.3% with net sales at EUR1.4 billion (USD1.8 billion). At constant exchange rates net sales increased by 6.1%. The US Foodservice division, which is to be divested in the future, increased net sales excluding currency changes by 4.1% to EUR15.3 billion (USD19.2 billion).

"Ahold met the targets we set last year," Chief Executive Anders Moberg said in a statement. "We have set operating margin guidance for our retained retail business for the year ahead at between 4% and 4.5%," he added. Ahold also said it will expand its previously announced share buyback programme to EUR3 billion (USD3.9 billion) from EUR2 billion (USD2.6 billion) -- depending on the sale of US Foodservice. Mr Moberg said that the sale of the Foodservice unit "is progressing well", without elaborating.