o www.ahoid.com/reports2009
Group performance - continued
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Performance
Operating income
In 2009, operating income was €1.3 biiiion, up €95 million or 7.9 percent compared to
2008. Higher operating profits were primarily driven by significantly improved results at
Stop Shop/Giant-Landover following the completion of the Value Improvement Program
(including rebranding) during 2008 and lower Corporate Center costs. Underlying retail
operating income (which excludes impairments, gains and losses on the sale of assets and
restructuring and related charges) was €1.4 billion, or 5.1 percent of net sales, consistent
with our mid-term target of 5 percent. You can read more about our operating companies'
results under Performance by segment. Impairments, gains and losses on the sale of
assets and restructuring and related charges are listed below.
Corporate Center costs were €63 million, down almost 31 percent compared to 2008,
positively impacted by results from our self-insurance activities. A one-off loss related to
our takeover of certain insurance liabilities was more than offset by lower provisions to
cover future insurance claims as a result of improved loss development and higher interest
rates. The net positive impact of our self-insurance activities on Corporate Center costs was
€11 million (2008: negative impact of €8 million). Core Corporate Center costs (as defined
in Non-GAAP financial measures) were €76 million, down €10 million compared to 2008
as a result of lower costs related to management incentive plans and continued effective
cost control.
Impairment of assets
Ahold recorded the following impairments and reversals of impairments of assets in 2009
and 2008:
2009 2008
million million
Stop Shop/Giant-Landover
(16)
(10)
Giant-Carlisle
Albert Heijn
(6)
(4)
Albert/Hypernova
(17)
1
Total Retail
(39)
(13)
Corporate Center - -
Total
(39)
(13)
In 2009, impairments at Stop Shop/Giant-Landover were related to real estate and the
closing of a number of in-store Starbucks locations. At Albert/Hypernova, impairments
were due to store closures and underperforming stores. In 2008, the majority of
impairments related to store closures at Stop Shop/Giant-Landover, primarily as part
of the operating company's network rationalization program.
Operating income million)
09
1,297
4.9%*
08
1,202
5.0%*
07
1,071
4.9%*
06
992
4.8%*
05
81
4.7%*
*Retail operating margin.
Retail operating income
of group total)
million,
Albert Heijr
09
08
654
647
48.1%
50.0%
Albert/Hypernova
09
08
(76)
1
(5.6)%
0.1%
Stop Shop/Giant-Landover
09
08
625
485
46.0%
37.5%
Giant-Carlisle
09
08
157
16C
11.5%
12.4%
Ahold Annual Report 2009 13
