o www.ahold.com/reports2009
Message from our CEO
MM In 2009, Ahold delivered solid
results. Our achievements
demonstrate the benefits of a
consistent, customer-focused
strategy.
Dear shareholders,
Group at a glance
In 2009, Ahold delivered solid results despite the severity of the economic downturn.
Our achievements demonstrate the benefits of a consistent, customer-focused strategy.
We gained market share in the Netherlands and at each of our banners in the United
States and improved customer satisfaction, while successfully balancing sales and margin.
Our sales grew six percent and we achieved an underlying retail margin of 5.1 percent,
consistent with our mid-term target of five percent. Operating income from continuing
operations increased by 9.6 percent. 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 our dividend.
The economic environment remains challenging for our industry. The combination of
deflation, down-trading by customers and the resulting increase in competitor activity
will continue to affect us all. I continue to believe the weak will get weaker and the strong
stronger. As a consequence of the decisive actions we have taken in recent years and the
restructuring of our businesses, we are among the strong.
We successfully completed a €500 million cost reduction program at the end of 2009
and announced a new three-year €350 million program to be delivered by the end of
2012. It is essential that we continue to reduce costs and improve efficiency so that we
can invest in price, service and quality for our customers.
In Europe, Albert Heijn continued to delight customers and perform strongly. The company
yet again improved its price positioning and significantly increased its market share to
32.8 percent, primarily as a result of the successful integration of the 56 former Schuitema
stores acquired in 2008. The market in the Czech Republic remains challenging, reflecting
the economic and competitive environment. To improve our competitive position,
we completed a major repositioning program in 2009 that included streamlining and
rebranding our store portfolio, substantial cost-saving initiatives, and strengthening our
customer offering.
In Scandinavia, our joint venture, ICA, also performed well. ICA Sweden had a particularly
strong year, increasing market share, improving margin and delivering record profits.
In Norway, the turnaround program began to show results and the business returned
to profit in the fourth quarter. The extreme economic environment in the Baltic region
severely impacted revenues and, despite exceptional cost savings and increasing market
share, the operation lost money.
In the United States, our Stop Shop and Giant-Landover businesses performed well,
driving volume growth, market share, and winning new customers. This resulted in a
24 percent increase in operating income compared to 2008. As part of our ongoing
Ahold Annual Report 2009 5
