Dutch retailer Ahold insisted that its pricing policy is winning market share in the Netherlands and US as it posted an increase in quarterly profits this morning (3 June).
The company, which operates Albert Heijn in the Netherlands as well as Stop & Shop, Giant Landover and Giant Carlisle in the US, said that operating profit rose 3.3% to EUR409m (US$500m) in the first quarter of the year.
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Ahold said that it was able to increase promotional activity while also growing profits thanks to a strong focus on cost control.
Net sales rose 1%, climbing to EUR8.74bn. Same-store sales were down 0.1% in the US but up 2.8% in the Netherlands.
“Our repositioning actions in recent years and our customer focus have enabled us to increase volumes and improve market share in the Netherlands and the United States and deliver another quarter of solid performance,” CEO John Rishton said.
However, he added: “The market continues to be challenging with customers focused on value and high levels of promotional activity.”
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By GlobalDataChanges to Ahold’s net provision for losses associated with former subsidies Brunos and Bi-Lo meant that the company was able to book a 45.7% jump in net income, which rose to EUR274m.
For the full release from Ahold click here.
