• Earnings per share rise 31.8% to Euro 0.35

  • Net earnings rise 48.2% to Euro 256.2 million

  • Operating results increase 68.0% to Euro 539.9 million o Sales increase 57.7% to Euro 12.4 billion

  • Reconfirmation of strong earnings growth for full-year 2000
Royal Ahold, the international food provider, achieved second quarter 2000 net earnings of Euro 256.2 million, a 48.2% increase. Sales rose 57.7% to Euro 12.4 billion and operating results increased by 68.0% to Euro 539.9 million. Earnings per share for the quarter rose 31.8% to Euro 0.35. Excluding currency fluctuations, specifically the higher average exchange rate of the U.S. dollar, earnings per common share grew 18.8%.

Ahold President Cees van der Hoeven commented that the results were "fully in line with the outlook the company has consistently announced. Our various operating units have performed well and the company is right on track. Our autonomous sales growth is robust while recent acquisitions and new joint ventures have contributed to the significant growth of sales and results."

Van der Hoeven reiterated the company's excitement about the adapted multi-channel strategy. "Our activities in the American foodservice sector, targeting the market for out-of-home consumption, are highly promising. This strategy enables us to reach consumers when they are eating out, which they are doing more regularly. We will be prominently positioned across the United States in this rapidly-growing food consumption segment thanks to our acquisition of U.S. Foodservice (UFS), the country's second largest food distributor, and our planned purchase of PYA/Monarch."

"In the meantime," the Ahold President said, "we are identifying significant synergy benefits among our foodservice and food retail operations. Jointly, our food retail and foodservice activities are prospering, and that applies to our operations in the United States, Europe and Latin America. We are very positive about the state of business and about our future."


      Ahold 2nd quarter / 1st half 2000 results compared to 1999

X Euro 1 million 2nd quarter

2000 1999 Change in %

Sales 12,449.7 7,892.7 57.7
EBIT 539.9 321.4 68.0
As % of sales 4.34 4.07
EBITDA 814.9 523.4 55.7
As % of sales 6.6 6.6
Net earnings 256.2 172.9 48.2
Net earnings 253.4 170.2 48.9
after
preferred
dividend
Earnings per share 0.35 0.26 31.8
in Euro

1st half

2000 1999 Change in %

Sales 23,403.8 17,173.1 36.3
EBIT 992.3 667.3 48.7
As % of sales 4.24 3.89
EBITDA 1,558.7 1,107.6 40.7
As % of sales 6.7 6.4
Net earnings 486.4 348.0 39.8
Net earnings 479.8 341.5 40.5
after
preferred
dividend
Earnings per share 0.70 0.53 32.3
in Euro


In the second quarter, sales and results were positively influenced by the higher average exchange rate of the U.S. dollar (Euro 0.96 vs Euro 1.07). Excluding currency impact, earnings per share grew 18.8% in the second quarter and 19.7% in the first half 2000.

United States

X USD 1 million        2nd quarter
2000 1999 Change in %

Sales 6,733.4 4,696.7 43.4

Operating results 353.0 238.9 47.8


X USD 1 million 1st half
2000 1999 Change in %

Sales 13,133.3 10,793.1 21.7

Operating results 666.7 505.6 31.9


In the United States, sales rose 43.4%. This increase mainly reflects the acquisition of U.S. Foodservice and, to a lesser degree, the Golden Gallon and Sugar Creek convenience store chains. The supermarket chains also contributed to sales growth.

Operating results in the United States rose 47.8%, partially reflecting the consolidation of U.S. Foodservice, whose results were fully in line with expectations. All U.S. operating companies achieved
higher operating results.

At Edwards, a division of Giant-Carlisle, preparations are underway for its conversion to the successful Stop & Shop format, expected to be completed in January 2001. The corporate support structure in the United States was considerably strengthened in the second quarter to better position the company to capture increasing synergy opportunities and economies of scale. At the end of the quarter, Ahold USA took a 51% stake in internet grocer Peapod.

Europe

X Euro 1 million       2nd quarter
2000 1999 Change in %

Sales 3,898.6 2,398.9 62.5
Operating results 142.1 92.6 53.5


X Euro 1 million 1st half
2000 1999 Change in %

Sales 7,098.6 5,282.0 34.4
Operating results 264.5 204.4 29.4


European sales rose 62.5%. This sharp sales increase largely reflects the newly-established joint venture with the ICA Group. The store chains in other European countries also contributed to sales growth. In The Netherlands, sales grew by 6.6%, partially reflecting the earlier acquisition of Dutch foodservice company Gastronoom. Sales increases in Portugal, the Czech Republic and Poland reflected the opening of new supermarkets and hypermarkets. The Czech Republic and Poland generated high identical sales growth, particularly through their hypermarkets. Operating results in Europe increased 53.5%, partly attributable to the results of the ICA Group, that were fully in line with expectations. Operating results in The Netherlands grew by 7.5%.

The results in Poland and the Czech Republic improved somewhat after absorption of costs, due to store openings and remodelings.

The conversion in the Czech Republic to the supermarket format Albert was completed in the second quarter. The central organization for Europe as a whole was considerably strengthened, facilitating the capture of economies of scale and synergy benefits. The Ahold European Competence Center also became fully operational.

Latin America

X Euro 1 million       2nd quarter
2000 1999 Change in %

Sales 1,224.3 872.7 40.3
Operating results 35.3 22.0 60.5

X Euro 1 million 1st half
2000 1999 Change in

Sales 2,337.9 1,642.1 42.4
Operating results 64.0 41.4 54.6


Latin American sales rose 40.3%, partly as a result of the acquisition of La Fragua in Guatemala. Other Ahold operating units in the region, specifically Disco in Argentina and Bompreco in Brazil, also contributed to sales growth.

Operating results in Latin America increased by 60.5%, partially reflecting the acquisition of La Fragua. The higher operating results of store chains in other countries - specifically Brazil - also contributed to the increase. Ahold assumed full control of its Brazilian operations following its acquisition of the Paes Mendonca family's stake in Bompreco.

Asia

X Euro 1 million       2nd quarter
2000 1999 Change in %

Sales 96.7 125.0 (22.6)
Operating results (5.5) (10.8) 49.1


1st half
2000 1999 Change in %

Sales 200.0 256.9 (22.1)
Operating results (11.6) (25.0) 53.6


Compared to last year, sales in Asia decreased, reflecting the discontinuation at the end of 1999 of Ahold activities in China and Singapore. In local currency, sales were higher in Thailand and Indonesia. Operating results improved at all store chains.

Corporate Costs

X Euro 1 million

2nd quarter 1st half

2000 1999 Change in % 2000 1999 Change in %
(11.0) (10.9) (0.9) (24.0) (22.5) (6.7)


Corporate costs were almost identical to those in the second quarter of last year.

Net Financial Expense

X Euro 1 million

2nd quarter 1st half
2000 1999 Change in % 2000 1999 Change in %
(167.3) (73.1) (128.9) (295.7) (192.2) (53.9)


Net financial expense amounted to Euro 167.3 million. This considerable increase is attributable to currency impact (a loss of Euro 12.1 million) as well as the financing of acquisitions and the consolidation of interest expenses at U.S. Foodservice, the ICA Group and La Fragua.

The rolling annual interest coverage ratio was 3.58 and the rolling annual ratio of net interest bearing debt/EBITDA amounted to 2.28.

Tax rate

The tax rate, expressed as a percentage of pre-tax earnings, amounted to 25.5%.

Group equity

Group equity, expressed as a percentage of the balance sheet total, amounted to 7.7% (at year-end 1999: 18.8%). After the conversion of the outstanding convertible subordinated notes, group equity will amount to 15.5%. Capital accounts amounted to 16.3% of the balance sheet total.

Stockholders' equity amounted to Euro 862 million. During the first half of 2000, proceeds from the issue of common stock and from exercised option rights, and the positive balance of exchange rate fluctuations were added to stockholders' equity. In addition, first half 2000 net earnings, after deduction of the preferred dividend, were added to stockholders' equity. Goodwill paid for acquisitions amounting to Euro 4.9 billion (primarily for U.S. Foodservice and the ICA Group) was fully charged to stockholders' equity.

The Ahold Corporate Executive Board is considering capitalizing the goodwill paid in the current fiscal year and amortizing it over a 20 year period in anticipation of new accounting rules.

Interim dividend

The Corporate Executive Board, with the approval of the Supervisory Board, has decided to declare an interim dividend of Euro 0.18 in cash, either to be paid as a cash sum or as a pay-out of 1% in stock per outstanding common share, charged to the tax exempt, paid-in capital (1999: Euro 0.14 or 1% in common stock). The interim dividend is payable as of September 18, 2000. Also payable from that date is the interim dividend on cumulative preferred financing shares.

Outlook for full year 2000: EPS to grow by 17-20%

Ahold reconfirms its earlier expectation that sales and operating results for the full-year 2000 will increase in all regions, reflecting healthy autonomous growth and acquisitions. It is expected that net earnings will be sharply higher than in 1999. Earnings per common share, excluding currency impact, are expected to rise by 17-20%.

Additional Information

Issue of preferred financing shares

Ahold intends to issue cumulative preferred financing shares in
October 2000 to strengthen stockholders' equity and finance
investments in The Netherlands. A proposal to amend the Articles of
Association will be put before an Extraordinary Annual General Meeting
of Stockholders on October 9, 2000.

Spain

Ahold also announced today its plans to acquire all outstanding shares of the Spanish food retailer Superdiplo, with sales approaching Euro 1.5 billion. The planned acquisition will boost Ahold's position in Spain and will be paid in Ahold shares.

Background

Royal Ahold is a rapidly growing international food provider with leading supermarket operations in the United States, Europe, Latin America and Asia. The company operates more than 7,000 supermarkets, hypermarkets and specialty stores with annualized sales of over USD 50 billion. The company services more than 30 million customers a week.

In the United States Ahold is the leading supermarket operator along the eastern seaboard with more than 1,100 stores (including Stop & Shop, Giant, Tops, and BI-LO), a nationwide food service operation (U.S. Foodservice) and growing e-commerce activities. Annualized US sales amount to over USD 32 billion.

In addition to its listing on the New York Stock Exchange (NYSE: AHO), Ahold's shares are trading on the Amsterdam Exchanges and on the
Swiss Exchange. Additional information is available on Ahold's website: www.ahold.com.

Royal Ahold press releases may contain `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.

          Consolidated statement of earnings of Royal Ahold

2nd quarter
x 1 million euro 2000 increase in % 1999
(12 weeks) (12 weeks)
Sales to third parties
United States (in dollars) 6,733.4 43.4 4,696.7
Europe 3,898.6 62.5 2,398.9
Latin America 1,224.3 40.3 872.7
Asia Pacific 96.7 (22.6) 125.0
Total sales 12,449.7 57.7 7,892.7

Operating results
United States (in dollars) 353.0 47.8 238.9
Europe 142.1 53.5 92.6
Latin America 35.3 60.5 22.0
Asia Pacific (5.5) 49.1 (10.8)
Corporate costs (11.0) (0.9) (10.9)
Total operating results 539.9 68.0 321.4

Net financial income and expenses (167.3) (73.1)

Earnings before income taxes 372.6 50.1 248.3

Income taxes (94.9) (68.1)

Earnings after income taxes 277.7 54.1 180.2

Income form unconsolidated
joint-ventures and associates 3.5 0.4
Minority interests (25.0) (7.7)

Net earnings 256.2 48.2 172.9

Dividend preferred shares (2.8) (2.7)

1st half year
2000 increase 1999
(28 weeks) in % (28 weeks)

Sales to third parties
United States (in dollars) 13,133.3 21.7 10,793.1
Europe 7,098.6 34.4 5,282.0
Latin America 2,337.9 42.4 1,642.1
Asia Pacific 200.0 (22.1) 256.9
Total sales 23,403.8 36.3 17,173.1

Operating results
United States (in dollars) 666.7 31.9 505.6
Europe 264.5 29.4 204.4
Latin America 64.0 54.6 41.4
Asia Pacific (11.6) 53.6 (25.0)
Corporate costs (24.0) (6.7) (22.5)
Total operating results 992.3 48.7 667.3

Net financial income and expenses (295.7) (192.2)

Earnings before income taxes 696.6 46.6 475.1

Income taxes (180.6) (125.5)

Earnings after income taxes 516.0 47.6 349.6

Income from unconsolidated
joint-ventures and associates 3.9 1.9
Minority interests (33.5) (3.5)

Net earnings 486.4 39.8 348.0

Dividend preferred shares (6.5) (6.5)


Ratios

2nd quarter
2000 1999
(12 weeks) (12 weeks)

Average number of common
shares outstanding (x 1,000)(a) 732,294 647,820
Earnings per common share(b) EUR 0.35 0.26
Earnings per common share
as if the convertible
subordinated bonds were
fully converted(a) EUR 0.34 0.26

Operating results
as % of sales 4.34 4.07
Depreciation (x 1 million) EUR 275.0 202.0
Operating results
before depreciation (x 1 million) EUR 814.9 523.4
Operating results
before depreciation
as % of sales 6.55 6.63
Earnings after income
taxes as
% of sales 2.23 2.28

Interest coverage 3.09 3.78

Average exchange
rate of the dollar EUR 1.07 0.96

1st half year
2000 1999
(28 weeks) (28 weeks)

Average number of common
shares outstanding (x 1,000)(a) 685,996 646,025
Earnings per common share(b) EUR 0.70 0.53
Earnings per common share
as if the convertible
subordinated bonds were
fully converted(a) EUR 0.69 0.53

Operating results
as % of sales 4.24 3.89
Depreciation (x 1 million) EUR 566.4 440.3
Operating results
before depreciation (x 1 million) EUR 1,558.7 1,107.6
Operating results
before depreciation
as % of sales 6.66 6.45
Earnings after income
taxes as
% of sales 2.20 2.04

Interest coverage 3.22 3.63

Average exchange
rate of the dollar EUR 1.04 0.93

(a) Number of shares has been adjusted for stock dividends.
(b) Earnings per share are calculated on the basis of the average
number of common shares outstanding and after deduction of preferr
dividend.


Consolidated balance sheet of Royal Ahold

x 1 million euro July 16, 2000(c) January 2, 2000(c)

Cash and cash equivalents 1,268 888
Receivables 2,977 1,697
Inventories 3,485 2,552

Tangible and intangible fixed assets 11,660 8,685
Financial fixed assets 1,172 464

20,562 14,286

Current liabilities 8,406 5,854
Long-term debt 7,190 3,797
Provisions 1,610 1,087
Subordinated loans 1,780 860

Minority interests 714 336
Stockholders' equity 862 2,352

Group equity 1,576 2,688

20,562 14,286

Net interest-bearing debt 9,454 4,874

Capital accounts 3,356 3,548


Ratios
July 16, 2000 January 2, 2000
Number of common
shares outstanding (x 1,000)(d) 770,772 651,238
Group equity/Total assets % 7.7 18.8
Capital accounts/Total assets % 16.3 24.8
Exchange rate of the dollar
for balance sheet items EUR 1,07 EUR 0.99
Group equity/Total assets
in % as if the convertible
subordinated bonds
were fully converted 15.5 23.7

(c) Excluding dividend proposal on common shares.
(d) Number of shares has been adjusted for stock dividends.

Consolidated statement of cash flows of Royal Ahold

1st half year
(28 weeks)
x1 million euro 2000 1999

Cash flows from
operating activities
Net earnings 486.4 348.0
Minority interest
in earnings 33.5 3.5
Depreciation and
amortization 566.4 440.3
Unremitted earnings of
unconsolidated associates (2.3) (0.1)
Changes in working
capital and provisions (164.8) (129.8)
Changes in deferred
income taxes 152.1 4.4

1,071.3 666.3

Cash flows from
investing activities
Net investments in
tangible and intangible
fixed assets (816.9) (627.5)
Acquisition of
subsidiaries (5,731.0) (352.6)

(6,547.9) (980.1)


Cash flows from
financing activities
Net change in loans
receivable/payable 2,732.8 418.4
Net proceeds from
issuance of shares 2,833.5 14.6
Dividends paid (30.6) (27.9)
Changes in minority interests (1.3) 40.0

5,534.4 445.1

Exchange rate differences 5.5 49.6

Net change in
cash and cash equivalents 63.3 180.9
Cash and cash equivalents
at beginning of year 887.6 519.4
Cash brought in through
acquisitions and
new consolidations 317.1 10.8

Cash and cash equivalents
at end of 1st half year 1,268.0 711.1