Highlights - third quarter 2013
- Sales €7.4 billion, up 0.6% at constant exchange rates
- Underlying operating margin 4.0% (Q3 2012: 4.1%)
- Operating income €248 million, down €40 million mainly due to restructuring
- Net income €165 million, up €24 million
- Free cash flow €181 million, up €22 million
- Additional capital repayment of €1 billion & reverse stock split in first quarter 2014
Zaandam, the Netherlands, November 14 - Ahold today published its interim report for the third quarter of 2013.
CEO Dick Boer said: "In the United States we continue to operate in a very competitive environment with low inflation. With limited sales growth we gained market share in the supermarket segment and maintained our share in the all-outlet market. We were able to maintain a solid underlying operating margin, supported by continuous cost savings.
"In the Netherlands, weak consumer sentiment was reflected in a further slowdown of market growth. We saw transactions remaining stable, albeit with a lower basket size and with consumers increasingly looking for value, impacting our market share performance this quarter. The underlying operating margin remained stable versus last year.
"We remain committed to our Reshaping Retail strategy and will continue to invest in growth, in both existing and new markets. Our online activities continue to show strong sales growth, both in food and non-food and we continue to rapidly expand our network of pick-up points, especially in the United States. Albert Heijn expects to have around half of the 82 acquired C1000 / Jumbo stores converted to its banner by the end of 2013 and is well on track expanding into Belgium.
"We expect similar conditions to continue in the current quarter with consumer spending under pressure, especially in the Netherlands. Cost savings from our Simplicity program allow us to continue to invest in our competitiveness in both the United States and the Netherlands.
"Our cash generation remains strong and we are committed to an efficient capital structure. We have completed around 30% of our €2 billion share buyback program, which is to be finalized by the end of 2014. In addition, subject to shareholder approval, we will distribute a further capital repayment of €1 billion to our shareholders, followed by a reverse stock split. Shareholder approval will be requested at an extraordinary general meeting of shareholders in January 2014 and we plan to complete this transaction in the first quarter of 2014. We remain committed to maintaining a balance between investing in profitable growth and returning cash to our shareholders and we will continue to move toward our capital structure targets."
More info and a video interview with CEO Dick Boer visit www.ahold.com
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