Ahold 2002 sales rise 9.2% to Euro 72.7 billion

Zaandam, The Netherlands, January 7, 2003 - Ahold, the international food retailer and foodservice operator, today reported 2002 sales of Euro 72.7 billion, a rise of 9.2% over the Euro 66.6 billion generated in 2001. Organic sales growth amounted to 3.2% for the year (2001: 6.1%).

 

In the fourth quarter, sales amounted to Euro 16.9 billion, a 0.3% increase over the Euro 16.8 billion generated in 2001. Organic sales growth in the fourth quarter was 2.5% (2001: 4.0%).

 

Consolidated sales in Euro were negatively impacted by the lower exchange rate of the U.S. Dollar and to a lesser extent by the devaluation of the Argentine Peso and the Brazilian Real.

 

Ahold reconfirms that earnings per common share for 2002, excluding goodwill amortization, exceptional items and currency impact, are expected to decline 6-8%.

'2002 was a year of increasingly challenging trading conditions,' said Cees van der Hoeven, Ahold President & CEO. 'Sales slowed in the course of the year as a consequence of further deteriorating economic circumstances. However, we are encouraged by the fact that we strengthened our position in most markets. Compared to the third quarter, all regions showed slightly better organic sales growth. As announced on November 19, 2002, Ahold launched a three-year company-wide initiative focused on portfolio rationalization and debt reduction. This initiative is on track and we will comment periodically during the course of this year.'

Sales rose both organically and as a result of the consolidation of Bruno's that took effect in December 2001. Organic U.S. retail sales growth amounted to 4.8% (2001: 6.2%). Identical U.S. retail sales growth totaled 0.9% (2001: 2.6%). Comparable U.S. retail sales growth was 1.6% (2001: 3.1%).

 

Organic sales growth in the fourth quarter was 4.1% (2001: 3.7%). Identical sales growth in the same period totaled 1.0% (2001: decline of 0.4%) and comparable sales growth was 1.6% (2001: 0.1%).

Foodservice sales grew mainly due to the consolidation of Alliant with effect from December 2001. Organic sales declined by 1.9% (2001: increase of 10.4%). The company shed unprofitable business that was part of the Alliant portfolio, closed unprofitable facilities and rationalized distribution.

 

Organic sales declined by 5.2% in the fourth quarter (2001: increase of 8.5%).

Organic sales growth amounted to 5.0% (2001: 6.7%). Organic sales growth in the fourth quarter was 5.2% (2001: 4.4%).

Sales in Euro were significantly lower as a result of the devaluation of mainly the Argentine Peso and the Brazilian Real, as well as the deconsolidation of La Fragua. Organic sales growth was 5.6% (2001: 1.2%).

 

Organic sales growth in the fourth quarter was 9.8% (2001: decline of 0.5%).

The non-consolidated sales of CARHCO amounted to Euro 1.6 billion (2001: Euro 0.7 billion).

Organic sales growth amounted to 17.2% (2001: 4.8%).

Ahold implements a multi-format strategy focused on meeting the needs of 40 million customers every week in currently 27 countries on four continents. A close network of food retail and foodservice companies provide a superior shopping and service experience in the local market place. Under their own local brand names, Ahold companies operate approximately 9,000 supermarkets, hypermarkets and convenience stores in the U.S., Europe, Latin America and Asia. Ahold also has significant foodservice activities in the U.S. and in three European countries.