NETHERLANDS: Ahold reports mixed 2012, to buy back shares
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.
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 st...
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 & Sprüngl...
ICA Gruppen, the Sweden-based retailer, has reported higher profits but lower sales for the first full quarter since coming under new ownership....
- What next for Nestle under new CEO Schneider?
- Unilever is "working harder" in tough environment
- Nestle catering for an ageing global population
- Hemp food sales in the US set for growth
- Brexit and UK food market policymaking
- Unilever sees growth but spreads decline continues
- Job cuts imminent as General Mills restructures
- Campbell's Soup's sustainable growth strategy
- Arla Foods unveils strategy for growth up to 2020
- US demand for organic food exceeding supply