o www.ahold.com/reports2009
Group performance
In 2009, we delivered solid performance in a
challenging environment. In the course of the
year, we saw consumer and competitor behavior
changing rapidly, with an increased focus on
price and promotions.
Performance
In 2009, Ahold successfully managed the balance between sales and margins, improved
market share and increased volumes in the Netherlands and the United States. We have
taken aggressive restructuring actions in Central Europe, including the closure or
downsizing of underperforming stores.
We completed our three-year €500 million cost reduction program in 2009. To continue
to provide value to our customers, we have launched a new €350 million cost reduction
program for the three years ending 2012. Separately, we will deliver additional sourcing
cost savings over the same period.
We reported an underlying retail margin of 5.1 percent, consistent with our mid-term target
of 5 percent. Net interest expense was at the lower end and capital expenditures were
below our 2009 guidance.
Net sales in 2009 were €27.9 billion, up 8.9 percent compared to 2008. At constant
exchange rates, net sales growth was 6.0 percent. Our operating income was up
7.9 percent to €1.3 billion. Income from continuing operations was €972 million,
up 9.6 percent compared to last year.
The economic environment remains challenging and conditions impacting our industry
are unprecedented. We will continue to reduce costs, improve our offer and provide value
to our customers. We have a proven ability to adapt and respond quickly and effectively
to changes in consumer behavior. As in 2009, we will manage the balance between sales,
margin and market share and use the strength of our balance sheet to seize opportunities
for growth as they arise.
Reflecting the confidence in our strategy, our ability to generate cash and our strong
balance sheet, we will complete a €500 million share buyback program over the next
12 months and propose a 28 percent increase in dividend to €0.23 per common share.
Ahold Annual Report 2009 11
