Results of operations
00 Ahold ANNUAL REPORT 2002 39
BOARD GOVERNANCE HIGHLIGHTS OPERATING REVIEW FINANCIAL INVESTOR REL AT IONS
Summary of our consolidated financial data
Presented below is a summary of our consolidated financial data for fiscal 2002, fiscal 2001 and fiscal 2000:
Fiscal 2002 Fiscal 2001 Fiscal 2000
Euro of sales Euro of sales Euro of sales
(in EUR millionsexcept percentages) (restated) (restated)
Net sales
62,683
100.0
54,213
100.0
40,833
100.0
Gross profit
13,461
21.5
11,986
22 1
9,554
23 4
Operating expenses
(13,222)
21.1
(10,075)
18.6
(7,919)
19 4
Operating income
239
0.4
1,911
3.5
1,635
4 0
Net financial expense
(1,008)
1.6
(707)
1 3
(568)
1 4
Income taxes
(390)
0.6
(270)
0 5
(235)
0 6
Share in income (loss) of joint ventures
and equity investees
(38)
(192)
(0 4)
78
0 2
Minority interest
(11)
8
10
Net income (loss)
(1,208)
(1.9)
750
1 4
920
2 3
Net income (loss) after preferred dividends
per common share - basic
(1.34)
N/A
0.83
N/A
1.22
N/A
Net income (loss) after preferred dividends
per common share - diluted
(1.34)
N/A
0.82
N/A
1.19
N/A
Overall results of operations
The following discussion summarizes our results of operations for fiscal 2002 compared to fiscal 2001 and fiscal 2001
compared to fiscal 2000. In certain instances, we present our results of operations excluding the impact of currency
exchange rates in order to provide insight into the operating performance of our foreign subsidiaries without distortion due
to currency exchange rates.
Net sales
- Fiscal 2002
Our consolidated net sales were EUR 62.7 billion in fiscal 2002 compared to EUR 54.2 billion in fiscal 2001. Our
consolidated net sales increased by EUR 8.5 billion, or 15.6%, in fiscal 2002 compared to fiscal 2001. Currency exchange
rates negatively affected our net sales in fiscal 2002. Excluding the impact of currency exchange rates, net sales would
have increased by EUR 10.8 billion, or 20.8%, in fiscal 2002 compared to net sales in fiscal 2001. The increase in net
sales was largely attributable to acquisitions, primarily including the full-year consolidation of Bruno's, in the U.S. retail
trade segment, and Alliant, in the U.S. food service segment. Increases in net sales from the Alliant acquisition were
partly offset by the divestiture of a non-strategic line of business that was acquired as a part of that acquisition. We began
consolidating Disco in our financial statements in the second quarter of fiscal 2002 as discussed under "Retail Trade:
Latin America". Additionally, we consolidated the results of DAIH, including Santa Isabel, in our financial statements
beginning in the third quarter of fiscal 2002, in conjunction with our purchase of additional shares of DAIH from VRH.
For additional information about our acquisition of the DAIH shares, please see our consolidated financial statements.
Excluding these acquisitions, net sales in fiscal 2002 increased primarily as a result of net sales growth in retail trade
at Stop Shop, Giant-Carlisle and Albert Heijn, which was caused by a variety of factors, including, in particular, the
opening of new stores, an increase in customer promotions and, in the case of Albert Heijn, inflation within Europe.
- Fiscal 2001
Consolidated net sales in fiscal 2001 were EUR 54.2 billion compared to EUR 40.8 billion in fiscal 2000. Net sales
increased by EUR 13.4 billion, or 32.8%, in fiscal 2001 compared to fiscal 2000. Currency exchange rates positively
affected our net sales in fiscal 2001. Excluding the impact of currency exchange rates, net sales would have increased by
EUR 12.9 billion, or 31.2%, in fiscal 2001 compared to net sales in fiscal 2000. Net sales in fiscal 2001 were also
significantly affected by our acquisitions, primarily the full-year consolidation of Superdiplo in Spain and the full-year
consolidation of USF and of PYA/Monarch in the United States. Additionally, the full-year consolidation of Bomprego in
Latin America and the acquisition of the Grand Union stores in the United States and the A&P stores by Schuitema in
The Netherlands contributed to net sales growth. Excluding these acquisitions, net sales increased mainly due to strong
