Highlights
- Record 2001 sales confirm Ahold's top position in food retail/foodservice
- Organic sales up 6.4% in 2001, excluding currency impact
- Ahold reconfirms full-year 2001 outlook of 15% earnings per share growth, excluding currency impact, goodwill amortization and exceptional charges
- Ahold announces 15% earnings per share growth target for 2002, excluding currency impact and goodwill amortization
- Operations benefit strongly from economies of scale
- December 2001 acquisitions of Alliant Foodservice and Bruno´s Supermarkets will contribute to full-year 2002 results
- Provision of Euro 100 million pre-tax in 4th Quarter 2001 for Argentine Peso devaluation
Zaandam, The Netherlands, January 8, 2002: Ahold, the Netherlands-based international food retail and foodservice company with major operations in the United States and Europe, today reported full-year 2001 consolidated sales of Euro 66.6 billion, a 27% increase over the Euro 52.5 billion sales generated in 2000. Organic sales growth at constant currency rates was 6.4% higher for the year.
Ahold reconfirmed its full-year 2001 outlook of 15% earnings per share growth, excluding currency impact, goodwill amortization and exceptional one-time charges related to the acquisition of Alliant Foodservice and the Argentine Peso devaluation.
For full-year 2002, Ahold expects to again deliver 15% earnings per share growth, excluding currency impact and goodwill amortization.
In a statement, President and CEO Cees van der Hoeven said 'the company is in excellent shape and eager to deliver again on its promises.'
Ahold is set to report detailed 2001 results and 2002 outlook on March 7.
United States
In the United States, Ahold owns and operates 6 prominent supermarket chains along the eastern seaboard and a rapidly-expanding nationwide foodservice operation. Full-year 2001 consolidated sales in the U.S. jumped to USD 35.3 billion, a 27% increase over 2000. Organic U.S. sales increased by 6.8% (2000: 5.3%). U.S. operations represent 59% of worldwide sales.
U.S. retail sales of the Ahold regional supermarket chains Stop & Shop, Tops, Giant (Landover), Giant (Carlisle) and BI-LO increased by 6.5% to USD 23.2 billion. The total includes sales at Bruno's Supermarkets as of December 12, 2001. Organic U.S. retail sales for the year, excluding currency impact, increased by 6.2%. Identical U.S. retail sales rose 2.6% and comparable U.S. retail sales grew by 3.1%.
(* For definition of terms see end of release).
U.S. foodservice sales increased by 103.8% to USD 12.1 billion. The total includes a full year of U.S. Foodservice (USF) sales, the acquisition of PYA/Monarch at year-end 2000 and, to a lesser extent, the Mutual and Parkway acquisitions in 2001. Sales at Alliant Foodservice, acquired in December, were only included as of December 1, 2001. Organic sales of the Ahold foodservice operations in the U.S., excluding currency impact, increased for the year by 10.8%. After the September 11 tragedy, organic foodservice sales growth was 7.0%.
Europe
In Europe, Ahold´s 2001 sales increased by 31.4% to Euro 21.8 billion. The total includes the year-end 2000 acquisition of Superdiplo in Spain and a full year of ICA sales in Scandinavia. Ahold now has operations in 13 European countries with overall sales representing 33% of total worldwide sales. All Ahold operating units in Europe achieved considerable sales increases. Organic sales growth, excluding currency impact, increased by 6.8%. All operations (The Netherlands, Scandinavia, Spain, Portugal, Poland and the Czech Republic) contributed strongly to the overall sales increase for the region.
Latin America
In Latin America, sales totaled Euro 4.9 billion, a 3.7% decrease over 2000. Organic sales, excluding currency impact, increased by 1.4%. Latin America represents 7% of worldwide Ahold sales. In local currencies, Bompreco in Brazil, Santa Isabel in Chile and La Fragua in Guatemala generated higher sales, despite difficult economic conditions. Sales at Disco in Argentina (joint venture with Velox Retail) were lower than last year, reflecting the impact of the financial and economic crisis. Market share at Disco increased. A provision of Euro 100 million pre-tax will be taken in the 4th Quarter 2001 in relation to the devaluation of the Argentine Peso.
Asia
Sales in Asia amounted to Euro 395 million, slightly lower than last year reflecting the closure of a few stores in Malaysia and Thailand. Organic sales growth, excluding currency impact, amounted to 3.4%. Asia represents 0.6% of Ahold worldwide sales.
Ahold reconfirms full-year 2001 earnings outlook
Ahold reconfirms its earnings outlook for full-year 2001. The Corporate Executive Board expects operating earnings to improve and net earnings to be sharply higher, reflecting organic growth and contributions from acquisitions. Earnings per common share for full-year 2001 are reconfirmed to rise by 15%, excluding currency impact and goodwill amortization and before an exceptional one-time charge for the restructuring of Alliant, announced last November, and the provision related to the devaluation of the Argentine Peso. Ahold will report its full-year and 4th quarter 2001 results on Thursday March 7, 2002.
Comments by Cees van der Hoeven, Ahold President and CEO
Cees van der Hoeven, President and CEO, said in a statement that 2001 has been 'most successful for Ahold, notwithstanding difficult economic conditions in various regions. Our customers clearly showed their appreciation for the value proposition Ahold provides throughout the world. Their support enabled us to implement our dual strategy of food retail and foodservice, using economies of scale to boost sales to record levels. Our worldwide organic sales growth of 6.4%, excluding currency impact, reflects the quality of operations. Several outstanding acquisitions in 2001 will contribute to earnings growth in a major way, specifically during the second half of 2002 and beyond. We're proud of last year's overall performance.'
Van der Hoeven said that Ahold further improved its organizational structure in the U.S. and Europe to maintain and accelerate the company's success in the future. 'We have stepped up our efforts to add more value to the company in the coming years, benefiting all stakeholders,' he added.
Outlook 2002: 15% earnings per share growth
'As a consequence of our value-added efforts and based on the current business status and our 2002 plans,' Van der Hoeven said, 'the Ahold Corporate Executive Board expects the company again to deliver 15% earnings per share growth for full-year 2002, excluding currency impact and goodwill amortization.'
He added that 'the integration of Alliant Foodservice into U.S. Foodservice is expected to slightly backload Alliant's results towards the second half of the year. Our shareholders will probably see higher earnings per share in the last two quarters than in the first two, as new shares issued in September 2001 to finance the acquisition are earnings eligible for full-year 2002.'
Van der Hoeven concluded his remarks by saying that 'our company considerably strengthened itself last year. We're in excellent shape to continue to meet our targets, step up organic sales growth and deliver on the promises we make to stakeholders.'
==============================================
Ahold reports full-year 2001 results March 7, 2002.
Ahold Stock Exchange listings: Ahold shares are traded on the New York Stock Exchange NYSE (symbol AHO), on the Euronext Exchanges of Amsterdam (AHLN), Paris and Brussels and on the Zurich Exchange (AHO).
The Ahold website is accessible under www.ahold.com
==============================================
* Explanation of terms:
Organic sales exclude sales from acquisitions.
Identical sales compare sales from exactly the same stores.
Comparable sales are identical sales plus sales from replacement stores.
==============================================
Invitation conference call
Today January 8, at 4:00 p.m. CET (10:00 a.m. EST).
The conference call can be accessed through www.ahold.com and will be posted on the Ahold website under Investor Relations.
==============================================
Backgrounders, profiles and photographs available on request or by downloading from Ahold website (www.ahold.com).
For your convenience, please find a concise Ahold backgrounder overpage.
Ahold backgrounder January 2002
Ahold is a leading international food retail and foodservice company with 2001 consolidated sales of Euro 67 billion. The company has major operations in the United States, Europe, Latin America and Asia. Ahold owns and operates worldwide approximately 9,000 supermarkets, hypermarkets and convenience stores in 28 countries, servicing 40 million customers every week.
Almost 60% of Ahold worldwide sales generated in the United States. In the U.S., Ahold owns and operates 6 regional supermarket companies under the brand names of Stop & Shop, Giant (Landover), Giant (Carlisle), Tops, BI-LO and Bruno`s. Their joint 1,600 stores generated combined 2001 consolidated sales of USD 23 billion. The stores are located along the eastern seaboard servicing customers in and around Boston and Greater New York-Long Island-Connecticut (Stop & Shop), Washington D.C. and Baltimore (Giant), Philadelphia (Giant), Buffalo and Cleveland (Tops), Greenville and Charleston (BI-LO) and Birmingham (Bruno's).
The Ahold supermarket companies are market leaders in their region and work closely together while maintaining their local identity and culture. They use economies of scale to boost local sales and company-wide earnings.
Ahold also owns five U.S. foodservice companies with annualized sales of approximately USD 19 billion. The foodservice operations provide Ahold with a rapidly growing nationwide presence in the still fragmented out of home markets. The Ahold foodservice companies are U.S. Foodservice, Alliant Foodservice, PYA/Monarch, Mutual and Parkway. They hold leading positions in various specialized foodservice fields, including the healthcare markets, hospitality sector, restaurant business, company cafetaria and government.
In Europe, Ahold has food retail and foodservice operations in 13 countries with combined 2001 consolidated sales of Euro 21.8 billion. Europe represents 33% of worldwide Ahold sales. Operations are in The Netherlands (market leader), Spain, Portugal (market leader), Belgium (foodservice), Sweden (market leader), Norway, Denmark, Poland, Czech Republic (market leader), Slovakia and the Baltic states Latvia, Estonia and Lithuania. While maintaining their own identity and culture, the European operations closely work together in know-how sharing, procurement, best practice transfer, IT, private label and other critical fields. The European Competence Center (ECC) provides Ahold operating units expertise in various disciplines.
In Latin America, Ahold has operations in 10 countries with combined 2001 consolidated sales of Euro 4.9 billion. This represents 7% of worldwide sales. Ahold has operations through partnerships in the Central American markets of Guatemala, Costa Rica, Honduras, Nicaragua and El Salvador. In Brazil, Argentina, Chile, Peru and Paraguay, Ahold companies cooperate by sharing best practices in store format development, central purchasing, private label development and IT, among others, benefiting from economies of scale and synergy.
In Asia, Ahold has operations in Thailand, Malaysia and Indonesia. Combined 2001 consolidated sales amounted to Euro 395 million. Asia represents 0.6% of overall Ahold sales.
Ahold is a public company headquartered in The Netherlands. Its shares are listed on the stock exchanges of New York City (AHO at the NYSE), Amsterdam, Paris and Brussels through Euronext (symbol AHLN) and Zurich, Switzerland (under AHO).
