- Q2 sales* of €7.4 billion down 1.1%, affected by the timing of Easter
- Strong online Q2 sales, up 18.6% to €273 million on an identical basis
- Q2 underlying operating margin 3.9%, reflecting pressure on volumes and price investments
- Program to improve customer proposition in the U.S. rolled out to a total of 320 stores
- European reorganization implemented, resulting in a €29 million restructuring charge
- Acquisition of SPAR stores in the Czech Republic completed
* at constant exchange rates
Analyst conference call - webcast
Zaandam, The Netherlands – Ahold today published its interim report for the second quarter and first half of 2014.
CEO Dick Boer said: “In a challenging competitive environment, we remain focused on executing our Reshaping Retail strategy and continue to make investments in our customer and value offering, making our stores a better place to shop.
“In the United States, the roll-out of our program to improve our customer proposition is progressing well, bringing better quality, service and value to our customers. By the end of this quarter, the program was active in 320 stores and will be rolled out to more than half of our stores by the end of this year. The accelerated roll out of the program together with our decision to absorb commodity price increases resulted in an investment in margin that was partly offset by cost savings from our Simplicity program.
"In Europe, as part of our Simplicity program, we implemented a reorganization of our head office support roles to improve efficiency. In addition, we streamlined Albert Heijn's commercial organization to enable a greater focus on improving quality and value for our customers and successfully introduced new products, especially in fresh.
"We expect that ongoing investments in our customer proposition and further development of our product range across multiple categories will result in improving sales trends."
This interim report includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those included in such statements. These forward-looking statements include, but are not limited to statements as to the progress of Ahold’s Reshaping Retail strategy, customer proposition program, Simplicity program, share buyback program, Ahold’s response to commodity price increases, Ahold’s investments in customer proposition and value offering, the reorganization of Ahold's head office in the Netherlands and the streamlining of Albert Heijn's commercial organization, Ahold's growth strategies, sales performances, margins, Ahold’s enterprise risk management program, the conversion of franchise stores to the Albert Heijn banner and the court approval, size, funding and timing of the Waterbury settlement. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ahold’s ability to control or estimate precisely, such as the effect of general economic or political conditions, fluctuations in exchange rates or interest rates, increases or changes in competition, Ahold’s ability to implement and successfully complete its plans and strategies, the benefits from and resources generated by Ahold’s plans and strategies being less than or different from those anticipated, changes in Ahold’s liquidity needs, the actions of competitors and third parties and other factors discussed in Ahold’s public filings and other disclosures. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this interim report. Ahold does not assume any obligation to update any public information or forward-looking statements in this interim report to reflect subsequent events or circumstances, except as may be required by applicable laws. Outside the Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of “Royal Ahold” or simply “Ahold.”Back to index