Ahold 2003 third quarter sales

Zaandam, The Netherlands, October 28, 2003 - Ahold today announced consolidated net sales for the third quarter of the year (12 weeks through October 5, 2003) of Euro 13.0 billion, a decline of 7.1% compared to Euro 14.0 billion generated in the 2002 third quarter. Sales are significantly impacted by the lower currency exchange rates of in particular the U.S. Dollar; sales excluding currency impact increased by 2.7%. The overall impact of acquisitions and divestments on net sales growth in the third quarter was not material. The sales numbers presented in this press release are preliminary and unaudited.

 

In the United States, net sales of USA retail in USD increased by 3.3% to USD 6.2 billion (2002: USD 6.0 billion). Comparable sales increased by 1.1% and identical sales increased by 0.3%.

 

In Europe sales rose 0.3% to Euro 3.0 billion (2002: Euro 3.0 billion). Lower sales at Albert Heijn were offset by sales growth at Schuitema, Central Europe and Spain.

Net sales at U.S. Foodservice increased by 5.9% to USD 4.3 billion (2002: USD 4.0 billion), partially achieved by low margin business. The acquisition of Allen Foods and Lady Baltimore in December and September of 2002, respectively, contributed approximately 2% to the sales growth.

In South America sales amounted to Euro 511 million (2002: Euro 586 million), down 12.8% compared to last year caused by the disposal of Santa Isabel Chile in July of 2003.

In Asia sales declined 28% to Euro 78 million (2002: Euro 109 million) due to the sale of most of the assets of Ahold Malaysia and Ahold Indonesia in the course of the third quarter of 2003.

Ahold expects operating income for full-year 2003 to be impacted by continued pressure on margins, primarily at U.S. Foodservice. Ahold also expects professional fees of lawyers, accountants and other advisors to be in excess of Euro 100 million in 2003.