Embattled Dutch retailer Royal Ahold has finally reported its delayed 2002 results, posting a net loss of €1.2bn (US$1.4bn), compared with a year-earlier profit of €750m.
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Looking to the future, Ahold said that it would announce financing plans and strategy later this month and that it expects to name a new chief for its scandal-ridden US Foodservice unit within ten days, reported Reuters.
Ahold said 2002 net sales were €62.7bn, while operating profit before impairment charges, goodwill amortisation and one-off items was €2.15bn.
Ahold also announced that the audited 2002 financial statements were delivered to its syndicate of banks as required under its €2.65bn credit facility negotiated in March 2003. As a result, Ahold has access to the unsecured tranche of US$915m.
“Based on our current cashflow projections, we believe that we will not need access to the unsecured tranche,” Hannu Ryöppönen, chief financial officer said.
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By GlobalDataThe findings of forensic and other internal investigations initiated by the company in 2003 required Ahold to restate its consolidated financial statements for 2001 and 2000. These restatements of prior years arose primarily from overstatements of vendor allowance income at US Foodservice and the deconsolidation of joint ventures.
Net income for 2001 was revised down by €363m to €750m, while net income for 2000 was revised down by €196m to €920m.
“The publication of these results is a major milestone that draws a line under recent events and enables us to move forward,” Ahold president and CEO Anders Moberg said.
“The underlying performance of our operating companies in the aggregate was good in a year of increased competition and a weak economy. We have some very solid operations and strong brands. However, in many ways, it’s been a lost year, difficult and negative. With 2002 now behind us, it’s time to move forward and rebuild value for our customers and our shareholders,” Moberg said.
In February, Ahold’s CEO and CFO resigned after accounting irregularities were discovered at the company’s US Foodservice unit. The company carried out internal investigations of its various subsidiaries and uncovered earnings overstatements of almost US$1bn for 2001 and 2002.
