Royal Ahold (NYSE: AHO), the international food retail and foodservice company, is right on track to boost sales to approximately Euro 65 billion this year, excluding further acquisitions and currency fluctuations. “Our company is in great shape and we anticipate rapid further growth,” said Ahold President & CEO Cees van der Hoeven at the Annual General Meeting of Stockholders yesterday.
The Ahold President disclosed to shareholders the company’s consolidated sales in the first quarter of the year (16 weeks through April 22, 2001), which increased 65.8% to Euro 18.2 billion. Stockholders approved the financial statements as well as the 2000 final dividend and all other proposals on the agenda.
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Solid sales growth continues
“Ahold continues to post solid sales growth,” van der Hoeven told over 1,200 attending shareholders. “We are particularly pleased with the developments over the first 16 weeks. The speed with which our business keeps growing makes us confident that we will again meet our targets and achieve record sales and earnings over the full-year 2001.”
Successful multi-channel strategy
Van der Hoeven outlined to shareholders the significant benefits the multi-channel and multi-format strategy is bringing to the company. “In our perception, this is the only correct way to serve our customers – where, when and how they want. We offer our customers a tailor-made approach with a broad range of meal choices and solutions. This way we meet our customers’ individual needs.”
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By GlobalData2001 first quarter sales up 65.8% to Euro 18.2 billion
Van der Hoeven also commented on the sales performance in the first quarter of 2001. Ahold generated consolidated sales (excluding VAT) during the first 16 weeks of the year (through April 22, 2001) of Euro 18.2 billion, a rise of 65.8% over the first quarter last year. In the United States, sales increased 60.0% to USD 10.2 billion. U.S. retail sales rose to USD 6.8 billion. In Europe, sales surged 77.5% to Euro 5.7 billion. In Latin America, sales rose 8.8% to Euro 1.2 billion while in Asia, sales amounted to Euro 101 million.
Strongly higher net earnings for full-year 2001
Concluding his address to shareholders, van der Hoeven reiterated that profitable growth is fundamental to Ahold’s strategy. Confirming the full-year 2001 outlook, the Ahold President said: “Sales and operating results are expected to improve in all trade areas, reflecting healthy organic growth as well as the contribution of recent acquisitions. Net earnings for the year will be strongly higher. Earnings per share, excluding currency fluctuations, extraordinary items and goodwill amortization, are expected to be 15% higher than in 2000.”
Financial statements, final dividend and agenda points all approved
Stockholders approved Ahold’s financial statements and the company’s 2000 final dividend proposal. Stockholders can elect to receive the final dividend of Euro 0.45 per common share of Euro 0.25 par value in cash or in the form of a 2% pay-out in common shares.
The dividend will be made payable as of May 23, 2001. The total dividend for 2000, including the interim dividend made payable in September 2000, amounts to Euro 0.63 per common share. Stockholders also approved all other proposals on the agenda, including the appointment of two new members of the Corporate Executive Board, Bill Grize and Jim Miller, as well as the appointment to the Supervisory Board of Bob Tobin and Roland Fahlin.
Royal Ahold
Royal Ahold is a rapidly-growing international food retail and foodservice company with sales in 2000 of Euro 52.5 billion (close to USD 50 billion). Ahold implements a multi-channel, multi-format strategy, serving consumers on four continents directly through food retail and indirectly through foodservice operations while offering various additional services such as internet-based home delivery. Ahold operates or services approximately 8,500 stores in the United States, Europe, Latin America and Asia, and has significant activities in the foodservice industry. The company employs more than 420,000 associates and serves the needs of over 35 million customers in 25 countries in its stores each week as well as over 200,000 institutional and foodservice accounts.
Royal Ahold’s press release contains ‘forward-looking’ statements. Actual results may differ from such statements as they may have been influenced by factors beyond the Company’s ability to control, as more fully discussed in Royal Ahold’s Annual Report.
