ICE CREAM
A total of NLG 179.2 million was reserved for income tax. Ahold's
1995 tax burden, expressed as a percentage of earnings before
income tax, excluding income from unconsolidated subsidiaries,
amounted to 27.0%, a fractional increase over 1994 (26.9%).
Net earnings grew 11.5% to NLG 456.6 million, compared
to NLG 409.5 million in 1994. At constant currency exchange rates,
the increase would have been 17.1%.
A proposal will be made to the General Meeting of Stockholders to
declare a cash dividend of NLG 0.89 and $0.36 per common share
of NLG 1.25 par value (1994: NLG 0.77 and $0.30, adjusted for
stock splits and dividends). Of these amounts, NLG 0.24 and $0.11
have been made payable as interim dividends in 1995. The 1995
dividend reflects the target pay-out rate of 40% of net earnings.
Furthermore, it will be proposed that stockholders be given
the option of receiving the final dividend in cash or in stock, from
the tax-free additional paid-in capital. The size and composition
of the optional stock dividend will be announced on May 2,1996,
after the close of trading on the Amsterdam Stock Exchange.
was involved in this acquisition, including assumption of $152 mil
lion in interest-bearing debt. This chain will be integrated into
Edwards in 1996.
In the Czech Republic, Ahold acquired Ceska General Food
(CGF), a 52-store chain with annual sales of about NLG 120 million.
A total of NLG 82 million was involved in this takeover, as well as for
a smaller acquisition.
Together with the German retailer Allkauf, Ahold estab
lished a joint venture in Poland under the name Ahold Allkauf
Poland. The goal of the joint venture is to build a chain of super
markets and hypermarkets in Poland. Activities of this venture were
still limited in 1995.
No important acquisitions occurred in The Netherlands or
Portugal in 1995.
In 1995, the activities of Albro Bakeries and Pragmacare, the
pharmaceutical retail organization in The Netherlands were sold
off to third parties. The effect of this disinvestment on the balance
sheet and is negligible.
In 1995, Ahold invested NLG 1,285 million in tangible fixed assets,
including NLG 131 million in acquisitions. In addition, new capital
lease commitments totaled NLG 121 million. Excluding acquisitions,
Ahold invested NLG 411 million in The Netherlands, NLG 249
million in other European countries, and $308 million in the
United States, mainly for new stores and expansion and improve
ment of existing stores.
In July, Ahold acquired the Mayfair supermarket chain
in New Jersey. The chain comprises 28 supermarkets with annual
sales of approximately $600 million. An amount of $188 million
At year end 1995, the balance sheet totaled NLG 9,246 million, up
from the 1994 year end total of NLG 8,713 million. The effect of
investments and acquisitions (about NLG 1,400 million) was largely
offset by the significantly lower year end dollar exchange rate
(NLG 1.60 vs. NLG 1.74).
As of year end 1995, stockholders' equity remained at
NLG 2.2 billion, as in 1994. Together with minority interests,
this represents 25.0% of the balance-sheet total (1994: 26.1%).
Stockholders' equity benefited from retained earnings (NLG 274
million), shares issued as a result of optional stock dividends
r
Interest coverage ratio
t
1991 199! 1993 1994 1995
Capital expenditures/Cash flow
x 1 million
1991 1992 1993 1994 1995
Capital expenditures (excl. capital leases)
Capital leases
Cashflow
Giant's sales rose 17.2% to 1,476 million.
Dividend proposal
Disinvestment
Investments and acquisitions
Equity position
24 Annual Report 1995 Royal Ahold
