NETHERLANDS: Ahold reports mixed 2012, to buy back shares

By Dean Best | 28 February 2013

Mixed 2012 results for Ahold

Mixed 2012 results for Ahold

Ahold today (28 February) booked mixed profit figures for 2012, with pension charges and IT costs hitting reported earnings but underlying results improved on 2011.

The Dutch retail giant posted net income of EUR827m (US$1.09bn) for 2012, down 18.7% on a year earlier. The company's operating income fell 11.9% to EUR1.19bn.

Ahold ran up EUR88m of pension costs in Europe and the US last year. It also filed a write-down of EUR88m from a software project it halted.

Underlying operating income was up 2.8% at EUR1.41bn. Ahold reported higher underlying operating income in the US, although it dipped in the Netherlands.

Ahold posted its 2012 sales last month. Sales increased 8.5% last year, or by 3.5% on a constant-currency basis. In the US, its identical-store sales were up 1.4%. Excluding fuel, identical-store sales inched up 0.5%. In the Netherlands, identical-store sales increased 1% last year.

Alongside the profit numbers today, Ahold announced plans to buy back EUR500m woth of shares. The retailer's use of cash is being closely watched; earlier this month, it signed a deal to sell its 60% stake in Sweden-based retailer ICA for SEK20bn. Ahold has been reported to be interested in regional US retailer Harris Teeter, although it has refused to comment.

Expert analysis

Food and Grocery Retailing in Netherlands: Databook to 2016

"Food and Grocery Retailing in Netherlands: Databook to 2016" contains detailed historic and forecast retail sales values, segmented at a category level. The report takes into account macroeconomic indicators and industry-specific drivers to provide data that helps companies in the Retailing industry better understand the changes in their environment, seize opportunities and formulate crucial business strategies.

Sectors: Financials, Retail

Companies: Ahold

View next/previous articles

Currently reading -

NETHERLANDS: Ahold reports mixed 2012, to buy back shares

There are currently no comments on this article

Be the first to comment on this article

Related research

Ahold in the Netherlands: Local Profile

This is a detailed report covering Ahold’s store formats, private labels, history, key employees, and key financial and operational metrics in the Netherlands....

Food Retail in the Czech Republic

Food Retail in the Czech Republic industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players includin...

Food Retail in the Netherlands

Food Retail in the Netherlands industry profile provides top-line qualitative and quantitative summary information including: market size (value 2007-11, and forecast to 2016). The profile also contains descriptions of the leading players including k...

Related articles

Editor's choice: the highlights on just-food last week

After Lindt & Sprungli reported higher solid first-half results last week, just-food interviewed the Swiss chocolate group's CEO Ernst Tanner to discuss its growth in mature markets and its patient strategy in developing economies. New Zealand's dairy sector continued to be in the spotlight after another recall of ingredients headed in China. Elsewhere, Heinz's new owners continued their plans to streamline its business, US food firm JM Smucker made a notable move in gluten free with the acquisition of Enray and we spoke to the creator of Powerful Yogurt, a product initially devised for men in the US and now looking at broadening its consumer base and expanding overseas.

Quote, unquote: just-food's week in words

The results continued to roll in last week and we heard from the likes of Hain Celestial and Ahold on how they performed and their outlook for the year ahead. Just-food also spoke with Lindt & Sprüngli CEO Ernst Tanner, who told us about how the company is convincing consumers to trade up - and why he sees cause for optimism in developed markets.

SWEDEN: Profits up, sales down at retailer ICA

ICA Gruppen, the Sweden-based retailer, has reported higher profits but lower sales for the first full quarter since coming under new ownership.

Welcome to the home of food information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page