Significantly higher results
earnings per share up
at least 15%
Outlook 2000
About 7% autonomous
sales growth in the US
Over 170 new European stores
In 2000, sales and operating results are
expected to rise in all Ahold trade areas,
reflecting robust autonomous growth and
the impact of acquisitions. Net earnings will
also increase considerably. We expect that
earnings per share, excluding the impact
of currency fluctuations, will be at least
15% higher than in 1999.
The proposed acquisition of U.S. Foodservice""
will boost earnings per share growth to
between 17 and 20%. /Is in previous years,
we expect operating results to grow faster
than sales as a result of efficiency improve
ments and economies of scale.
Growth potential substantially enhanced
As well as its brisk autonomous growth,
Ahold recently announced new acquisi
tions and joint ventures which will also
substantially enhance our growth potential.
These transactions will be consolidated in
the course of this year. Their contribution
and synergy impact is not taken into
account in the outlook for each of our
trade areas. Strategically, the acquisition
of U.S. Foodservice is a very important
step in the United States, where Ahold is
Gross national product in the United States is
expected to rise by 2.5% in 2000. Private con
sumption will increase by about 2.7%. Growth
of 4.3% is anticipated in the food retail sector.
Ahold USA expects identical sales growth of
more than 2% in 2000 while autonomous
growth will amount to about 7%. Our current
operating companies will open over 50 new
supermarkets this year and remodel a further
200 existing stores. This will boost the number
of our US supermarkets to about 1,100 (at
1999 year-end: 1,063). Investment in our
current US business in 2000 will total approxi
mately USD 1.1 billion (1999: USD 0.9 billion).
Operating margin is expected to rise again,
reflecting considerable synergy benefits and
strict cost control.
developing from prominent food retailer
into a nationwide distributor of food and
related products and services, including
e-commerce and home delivery. U.S.
Foodservice and our five retail companies
will generate considerable synergy benefits.
The acquisition of U.S. Foodservice opens
an attractive growth market for Ahold that
is still in the first stages of consolidation.
In Europe, sales will double to approxi
mately Euro 20 billion through our new
joint venture with Scandinavian market
In our European trade areas, gross national
product is expected to increase further in 2000,
varying per country from about 2.5% to 4%.
Private consumption will increase by more than
2.5%. The food retail market sector is expected
to grow by about 3%. Ahold expects its
European activities to show average
autonomous sales growth of approximately 11%.
Current Ahold and Ahold-associated companies
will open about 170 new stores and remodel
a further 400 this year. By year-end, Ahold will
operate about 2,600 stores (at 1999 year-end:
2,442). This figure excludes the ICA Group
(3,100 stores), the possible expansion of the
joint venture with Jerónimo Martins (800 stores)
and the over 450 supermarkets affiliated to
Schuitema. Total investment in our current
European business will amount to approximately
Euro 710 million (1999: Euro 533 million).
Operating margin is expected to rise in all
trade areas.
Royal Ahold Annual Report 1999
