5T
In The Netherlands, the Meester and
Nistria meat processing companies were
divested in October and deconsolidated
effective the fourth quarter.
United States
Sales in the United States rose 26%
to USD 20.3 billion (1998: USD 16.2
billion). This substantial increase
mainly reflects the consolidation of
Giant-Landover. BI-LO and Giant-Carlisle
generated improved sales and at
Stop Shop in particular, sales were
markedly higher. Sales at Tops were
marginally lower due to divestment of
the Vix stores. US operating results rose
40% to USD 1.0 billion (1998: USD 0.7
billion). All operating companies contrib
uted to the improved results, reflecting
successful marketing campaigns, strict
cost control and the achievement of
synergy benefits. Results at BI-LO and
Tops were markedly improved. Results
at Giant-Carlisle, Stop Shop and
Giant-Landover were significantly higher.
Europe
Sales in Europe increased by 11% to
Euro 10.5 billion (1998: Euro 9.4 billion).
Operating results in Europe rose by 14%
to Euro 459.1 million (1998: Euro 402.2
million).
In The Netherlands, sales rose 5% to
Euro 8.1 billion (1998: Euro 7.7 billion).
At Albert Heijn, sales and results rose
and market share remained virtually
unchanged. Sales, results and market
share increased at Schuitema. Sales at
Deli XL grew considerably, mainly
reflecting the consolidation of Gastronoom.
In the other European countries
(Portugal, Spain, the Czech Republic
and Poland), sales rose 36% to Euro 2.4
billion (1998: Euro 1.7 billion). This
growth was primarily generated in Poland
and the Czech Republic. The Spanish
supermarket chains acquired in 1999
also contributed substantially to the
sharp sales increase. In Portugal, sales
also rose markedly. Pingo Doce and Feira
Nova achieved significantly higher oper
ating results. All store formats in the
Czech Republic generated increased
results, in particular Hypernova and
Prima, which achieved sharply improved
results. Operating losses in Poland were
reduced. The Spanish supermarket
companies acquired in 1999 generated
positive results, fully in line with expect
ations.
Latin America
In Latin America, sales rose 65% to Euro
3.5 billion (1998: Euro 2.1 billion). This
sharp increase reflects the full-year
consolidation of Disco in Argentina and
Chile-based Santa Isabel (in 1998, only
the fourth quarter was consolidated). In
local currency, sales at all chains grew
throughout the year. Operating results
rose 54% to Euro 96.7 million (1998:
Euro 62.8 million). The Euro increase
reflects the consolidation of Disco. Due
to the devaluation of the Brazilian Real,
results at Bompreqo in Euro were lower
than in 1998. Operating results in Latin
Operating results
Earnings after tax
1995 1996 1997 1998 1999
as a of sales
Operating results
Net earnings
America were also negatively impacted by
one-time charges at Santa Isabel,
amounting to Euro 9 million, largely
reflecting the depreciation of real estate
and a provision for receivables in Ecuador.
Asia
In Asia, sales rose 16% to Euro 475.8
million (1998: Euro 409.6 million).
Operating losses amounted to Euro 40.8
million (1998 loss: Euro 46.9 million).
Effective the fourth quarter, loss-making
activities in China and Singapore were
divested.
Corporate costs
Corporate costs amounted to Euro 44.1
million (1998: Euro 40.0 million).
Corporate costs increased primarily as
a result of the start-up and development
of new activities.
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Royal Ahold Annual Report 1999
