19
Results from operations
Ahold
Annual Report 2011
Groupata glance
Performance
Governance
Financials
Investors
Group performance continued
Net sales million)
30,271 5.5%
29,530 4.4%
25,648 6.9%
24,824 6.6%
1 At constant exchange rates and adjusted for
the impact of week 53 in 2009.
Net sales
Contribution by segment
million) Growth2
Ahold USA 18,026 6.6%
The Netherlands 10,506 4.2%
Other Europe 1,739 2.4%
Total 30,271 5.5%
2 At constant exchange rates.
Ahold's 2011 and 2010 consolidated income statements are summarized as follows:
2011 (52 weeks)
2010 (52 weeks)
million
of
net sales
of
million net sales
better
(worse)
Net sales
30,271
100.0
29,530
100.0
2.5%
Gross profit
7,921
26.2
7,920
26.8
0.0%
Retail operating expenses
(6,466)
(21.4)
(6,471)
(21.9)
0.1%
Underlying retail operating income
1,455
4.8
1,449
4.9
0.4%
Items excluded from underlying retail
operating income:
Impairments and impairment
reversals - net
(25)
(27)
Gains (losses) on the sale of
assets - net
12
14
Restructuring and related charges
(15)
(24)
Retail operating income
1,427
4.7
1,412
4.8
1.1%
Corporate Center costs
(80)
(0.3)
(76)
(0.3)
(5.3)%
Operating income
1,347
4.4
1,336
4.5
0.8%
Net financial expense
(316)
(259)
(22.0)%
Income taxes
(140)
(271)
48.3%
Share in income of joint ventures
141
57
147.4%
Income from continuing operations
1,032
3.4
863
2.9
19.6%
Loss from discontinued operations
(15)
(10)
(50.0)%
Net income
1,017
3.4
853
2.9
19.2%
Net sales
Net sales in 2011 were €30.3 billion, up 2.5 percent compared to 2010. At constant exchange
rates, net sales growth in 2011 was 5.5 percent. We delivered strong sales performance in our
major markets despite market conditions that remained challenging. Net sales growth was
positively impacted by identical sales growth, store remodeling and expansion, new stores, and
smaller fill-in acquisitions in the United States. 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.
