Dutch retail giant Ahold has seen quarterly sales and earnings dip due to restructuring charges and lower income from ventures.
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The company today (7 June) posted flat first-quarter profits on the back of a 0.7% fall in revenue for the three months to the end of March. Net sales reached EUR13.2bn (US$17.8bn) with operating profit also falling 0.7%, hitting EUR421m.
Restructuring charges linked to Ahold’s Stop & Shop and Giant-Landover banners weighed on the company’s earnings. Operating profit from these stores fell 21% to $228m.
Ahold’s share of income from its joint ventures slumped 24% to EUR22m due to weakness in its Scandinavian joint venture, ICA.
Sales from Ahold’s Albert Heijn stores rose almost 13%, buoyed by the company’s Konmar acquisition. Ahold’s sales in the Czech Republic and Slovakia rose almost 10% while losses from the business halved over the period, reaching EUR5m.
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By GlobalDataSales from the company’s US foodservice business, which it agreed to sell earlier this year, rose 4.4%.
