Group performance
6.9%
5.0%
O
€25.7 billion
€1.2 billion
€1.1 billion
In 2008, we delivered solid performance with
particularly strong results in the last quarter, and
achieved an underlying retail operating margin
of 5.0 percent for the full year. Net sales were
EUR 25.7 billion, up by 3.3 percent compared
to last year. At constant exchange rates, net sales
increased by 6.9 percent.
Results from operations
net sales
net sales increase at constant
exchange rates
operating income
underlying retail operating margin
net income
-
-
Operating and financial review
AHOLD ANNUAL REPORT 2008 10
During 2008, we completed the Value Improvement Program, including the
rebranding of Stop Shop and Giant-Landover. This strengthened our relative price
position and led to market share gains and improved financial results in the second
half of the year. Meanwhile, Giant-Carlisle continued its strong performance,
gaining significant market share.
In Europe, Albert Heijn had another excellent year, including the conversion
of 54 stores to the Albert Heijn banner following the divestment of our stake
in Schuitema. Albert/Hypernova was able to maintain its market position and
break even in very competitive markets in the Czech Republic and Slovakia.
Ahold's operating income was up EUR 130 million, or 12.2 percent to
EUR 1,198 million. Income from continuing operations was EUR 868 million,
up 15.3 percent compared to last year.
Last year, we reinstated an annual dividend and for 2008, we propose to increase
our dividend by 12.5 percent to 18 eurocents per common share.
2008
2007
million
of
net sales
million
of
net sales
Change
Net sales
25,722
100.0
24,893
100.0
3.3%
Gross profit
6,924
26.9
6,860
27.6
0.9%
Operating expenses
(5,627)
(21.9)
(5,621)
(22.6)
(0.1)%
Underlying retail operating income
1,297
5.0
1,239
5.0
4.7%
Unusual items excluded from underlying retail operating income:
Impairments and impairment reversals - net
(13)
(0.1)
(29)
(0.1)
n/m
Gains (losses) on the sale of assets - net
46
0.2
37
0.1
n/m
Restructuring and related charges
(36)
(0.1)
(32)
(0.1)
n/m
Retail operating income
1,294
5.0
1,215
4.9
6.5%
Corporate Center costs
(96)
(0.3)
(120)
(0.5)
20.0%
Unallocated costs
(27)
(0.1)
100.0%
Operating income
1,198
4.7
1,068
4.3
12.2%
Net financial expense
(214)
(300)
28.7%
Income taxes
(225)
(153)
(47.1)%
Share in income of joint ventures
109
138
(21.0)%
Income from continuing operations
868
753
15.3%
Income from discontinued operations
211
2,192
(90.4)%
Net income
1,079
2,945
(63.4)%
www.ahold.com/reports2008
