NETHERLANDS: Ahold reports mixed 2012, to buy back shares
By Dean Best | 28 February 2013
 |
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
1 Mar 2013 -
Currently reading -
NETHERLANDS: Ahold reports mixed 2012, to buy back shares
28 Feb 2013 -
Related research
Koninklijke Ahold N.V. (AH) - Financial and Strategic SWOT Analysis Review
Koninklijke Ahold N.V. (Ahold) is a food retailing company. It is an international company of quality supermarkets based in the US and Europe. It is also engaged in operating specialty stores, drug stores, and wine & liquor shops under the brand name...
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....
Ahold in the United States: Local Profile
ICD Research's ‘Ahold in the United States: Local Profile’ is a comprehensive report covering the company’s local operations. It also includes key financial and operational performance details of the company. In addition, the report presents the stra...
Related articles
What the analysts say - Delhaize CEO departure, Q1 results
In two separate announcements this morning (8 May), Belgian retailer Delhaize Group revealed its CEO Pierre-Olivier Beckers is to retire at the end of the year and that it had returned to profit in the first quarter. Analysts gave a mixed view of the announcements.
SWEDEN: Retailer ICA records "positive" Q1
Swedish retailer ICA said it started the year on a "positive note", despite booking a drop in first-quarter profit hit by one-off costs.
There are currently no comments on this article
Be the first to comment on this article