Amsterdam, the Netherlands, November 2, 2006 - Ahold today announced consolidated net sales of €10.3 billion for the third quarter of 2006. Compared to the third quarter of 2005, net sales increased by 0.7% and by 3.7% at constant exchange rates. We stated when we announced our Q2 results that the outlook for the second half of the year would be more challenging. The third quarter has been even more challenging in the United States, reflecting increased competitor activity and weaker economic conditions, leading to margin pressure.
Sales performance
Stop & Shop / Giant-Landover
Net sales in the arena increased 2.1% to $3.7 billion.
Comparable sales decreased 0.8% at Stop & Shop and 0.2% at Giant-Landover.
Giant-Carlisle / Tops
Net sales in the arena increased 0.3% to $1.4 billion.
Identical sales increased 4.8% at Giant-Carlisle (3.0% excluding gasoline net sales), but decreased 6.2% at Tops (7.3% excluding gasoline net sales).
Comparable sales increased 7.2% at Giant-Carlisle, but decreased 5.7% at Tops.
Albert Heijn
Net sales in the arena increased 10.3% to €1.6 billion.
Net sales at Albert Heijn increased 10.6% to €1.5 billion.
Identical sales increased 9.2% at Albert Heijn.
Central Europe
Identical sales for the arena decreased 6.1%.
Schuitema
Net sales increased 1.1% to €716 million.
Identical sales increased 1.1%.
U.S. Foodservice
Net sales at U.S. Foodservice increased 5.0% to $4.5 billion. Quarterly sales comparisons were negatively impacted by approximately 0.7% as a result of exiting the Sofco business in the third quarter of 2005. Cost inflation was in the 1-2% range for the third quarter of 2006.
Net sales at U.S. Foodservice - Broadline increased 4.3% to $3.9 billion. The Sofco exit in the third quarter of 2005 negatively impacted Broadline sales by approximately 0.8%.
Net sales at North Star Foodservice increased 9.6% to $684 million.
Unconsolidated joint ventures and associates
Net sales of unconsolidated joint ventures and associates increased 6.4%. At constant exchange rates, net sales increased 6.0%.
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