Financial Review
In 1995, Ahold achieved consolidated sales of NLG 29.6 billion, a 2.1% rise over
1994. Consolidated net earnings for 1995 were NLG 456.6 million, up 11.5%.
Earnings per share rose 8.7% to NLG 3.74 (1994: NLG 3.44). The average
number of shares outstanding in 1995 grew by 3.2% to a total of 122,083,282.
Reported gains in 1995 sales and operating results were significantly
reduced by the markedly lower average exchange rate of the dollar
(NLG 1.61 vs. NLG 1.82). At unchanged exchange rates, sales in
creases would have been 8.3% and net earnings would have been
17.1% higher as compared to 1994.
In 1995, Ahold Real Estate-Netherlands was treated as a
fully consolidated subsidiary and has been included in the consolida
tion. To allow comparison, figures from previous years have been
adjusted accordingly.
The supermarket companies acquired in 1995 - Mayfair
SuperMarkets (United States), Ceska General Food and ZIOS
(both in the Czech Republic) - have been included in the con
solidation from the date of their acquisition. Albro Bakeries and
the Pragmacare retail pharmacies were sold to third parties
in 1995.
Ahold's operating results were NLG 915.5 million, an 11.8%
increase over 1994 (NLG 818.9 million).
Consolidated sales amounted to NLG 29.6 billion, an in
crease of 2.1% over 1994. In The Netherlands, sales were NLG 14.3
billion (1994: NLG 14.0 billion), a 2.3% increase. Albert Heijn
achieved further sales increase, while wholesaler Schuitema posted
sales at approximately the same level as in the prior year. Sales in
other European countries rose 25.9% to NLG 1.9 billion (1994:
NLG 1.5 billion). Sales in the United States amounted to $8.3 bil
lion, up 12.2% from $7.4 billion in 1994. Excluding Mayfair, US
sales increased 8.9%.
Operating results in The Netherlands reached NLG 437.0
million, a 12.4% increase (1994: NLG 388.7 million). Both Albert
Heijn and Ahold Specialty Stores posted significantly higher
results. Operating results in 1995 included start-up costs associated
with wide-reaching changes in Albert Heijn's distribution and store
organization.
As a of sales
Operating results in other European countries amounted to
NLG 122.5 million (1994: NLG 89.8 million). This considerable
increase was mainly due to the uptrend in operating results at the
Portuguese chains Pingo Doce and Feira Nova. As expected, a
positive operating result was achieved for the first time in the
Czech Republic in 1995.
The American subsidiaries had total operating results of
$222 million, up 18.1% from 1994 ($187.9 million). Giant, Edwards
and Finast had measurably higher results in 1995. Because of signifi
cant efforts to improve its market position, Tops' operating results
lagged slightly behind 1994. In BI-LO's operating area, competition
rose sharply, placing pressure on operating results. The development
at newly acquired Mayfair was in line with expectations.
Income from unconsolidated subsidiaries and affiliates
amounted to NLG 7.6 million (1994: NLG 9.9 million). This slight
decline primarily reflects inclusion of start-up costs related to the
joint venture begun in Poland in 1995.
Net interest expense came to NLG 251.5 million, a limited
increase compared to 1994 (NLG 241.3 million). The interest
coverage ratio improved from 3.07 in 1994 to 3.28 in 1995.
Net earnings x 1 millii
Operating results/Net earnings
2
1.5-
0.5-
0
1991 1992 1993 1994 1995
1991 1992 1993 1994 1995
Operating results
Net earnings
Annual Report 1995 Royal Ahold 23
