Dutch retailer Ahold said it has delivered a “solid” set of financial results, with an increase in first-half profits.

In the six-month period, the company earned EUR476m (US$605m), a 24% increase on the prior year. The increase was a result of year-over-year changes in Ahold’s estimate of its net provision for losses under lease guarantees related to its former subsidiaries Bo-Lo and Bruno’s.
Operating income was EUR756m, up 9.4% on last year. Retail operating income amounted to EUR805m and retail operating margin was 5.1% compared to 4.8% last year.

Sales climbed 5.2% to EUR15.86bn. The figure was positively impacted by business acquisitions in the first quarter.

CEO John Rishton said: “We continued to grow sales, volumes and market share in the Netherlands and the US while delivering solid financial results. Market conditions remained challenging with high levels of competitive promotional activity.”

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