Dutch retail giant Ahold has reported net income of €130m (US$161.6m) for the second quarter of 2005, compared to a net loss of €28m in the year-ago period.

The company said the results showed a stable performance in a competitive environment, with results also reflecting the company’s restructuring.

Net sales for the second quarter were €10.4bn, a decrease of 0.9% compared to the second quarter of 2004. Net sales increased by 0.5% excluding currency impact.

Ahold said its retail execution and value repositioning strategy contributed to top line in Europe. In the US, the streamlining of its store portfolio is continuing and it recorded solid progress at US Foodservice, for which a strategic plan is to be announced in November 2005.

The company also said its divestment programme is nearing completion, having generated €2.7bn gross proceeds to date

Ahold reiterated its key priorities for 2005: the successful execution of its Road to Recovery strategy, including completion of the divestment programme; implementation of its retail business model to drive sales volume throughout Ahold; further improvement of operational performance at US Foodservice; and completion of its 2006+ strategy following the Road to Recovery.