Results from operations
Ahold
Annual Report 2010
Group performance continued
Group at a glance
Performance
Governance
Fi nancials
Investors
Ahold's 2010 and 2009 consolidated income statements are summarized as follows:
Net sales million)
Growth1
2010
H 29,530
4.4%
2009
27,925
3.9%
2008
25,648
6.9%
2007
24,824
6.6%
2006
24,584
4.2%
1 At constant exchange rates and adjusted for
the impact of week 53 in 2009.
Net sales
Contribution by segment
million) Growth2
I Ahold USA
The Netherlands
Other Europe
17,783 5.1%
10,087 4.7%
1,660 (3.5)%
Total
29,530
4.4%
2010 (52 weeks)
2009 (53 weeks)
million
of
net sales
million
of
net sales
better
(worse)
Net sales
29,530
100.0
27,925
100.0
5.7%
Gross profit
7,920
26.8
7,587
27.2
4.4%
Retail operating expenses
(6,471)
(21.9)
(6,172)
(22.1)
(4.8)%
Underlying retail operating income
1,449
4.9
1,415
5.1
2.4%
Items excluded from underlying retail
operating income:
Impairments and impairment
reversals - net
(27)
(39)
Gains (losses) on the sale of
assets - net
14
7
Restructuring and related charges
(24)
(23)
Retail operating income
1,412
4.8
1,360
4.9
3.8%
Corporate Center costs
(76)
(0.3)
(63)
(0.2)
(20.6)%
Operating income
1,336
4.5
1,297
4.6
3.0%
Net financial expense
(259)
(283)
8.5%
Income taxes
(271)
(148)
(83.1)%
Share in income of joint ventures
57
106
(46.2)%
Income from continuing operations
863
972
(11.2)%
Loss from discontinued operations
(10)
(78)
87.2%
Net income
853
894
(4.6)%
2 At constant exchange rates and adjusted for
the impact of week 53 in 2009.
Week 53
Our financial year consists of 52 or 53 weeks and ends on the Sunday nearest to December 31.
Financial year 2010 consisted of 52 weeks, while 2009 consisted of 53 weeks. Net sales in 2009
were positively impacted by the additional week, while the impact on operating margins for the
year was negligible. In some of the discussions below, we have included comparisons of 2010
with 2009 excluding week 53 (referred to as adjusted 2009).
Net sales
Net sales in 2010 were €29.5 billion, up 5.7 percent compared to 2009. Compared to adjusted
2009 and at constant exchange rates, net sales growth in 2010 was 4.4 percent. We delivered
strong sales performance in our major markets despite market conditions that remained
challenging, particularly in the United States. Net sales growth was positively impacted by
identical sales growth, store remodeling and expansion, new stores, and acquisitions, primarily
the acquisition of 25 Ukrop's stores by Giant Carlisle in February 2010. You can read more about
our operating companies' net sales in Performance by segment.
Our net sales consist of sales to consumers and sales to franchise stores. Franchise stores
typically operate under the same format as Ahold-operated stores. Franchisees generally
purchase merchandise from Ahold, pay a franchise fee, and receive support services, including
management training, field support, and marketing and administrative assistance.
