Other Europe
(2.2)%
1.3%
albert hypernova
Performance by segment (continued)
Operating
profit margin
continues
to improve
11
10
Operating income
Ahold Annual Report 2012 44
Ahold at a glance
Our strategy
Our performance
Governance
Financials
Investors
Our brands
Highlights of the year
Albert rolled out new and improved deli departments in all of its
226 supermarkets in the Czech Republic
Albert maintained market share in a highly competitive market where
other retailers continued to open new stores throughout the year
Albert continued its rollout of a new compact hyper format, adding
another eight stores, with positive results
The Albert Charity Foundation - set up by Albert in the Czech
Republic to support families, promote health and help individuals
in need - ran a number of initiatives during the reporting year that
contributed to community well-being.
Identical sales growth
(excluding gasoline sales)
Underlying
operating margin
Financial results
2012
2011
Net sales millions)
Net sales growth
Identical sales growth
Identical sales growth
(excluding gasoline sales)
Operating income millions)
Underlying operating income millions)
Underlying operating margin
Number of employees headcount
(at year end in thousands)
Number of employees FTEs
(at year end in thousands)
Contribution to Ahold sales
Contribution to Ahold underlying
operating income1
1,675
(3.7)%
(2.3)%
(2.2)%
3
21
1.3%
1,739
4.8%
2.2%
1.8%
18
20
1.2%
12
10
5.1% 5.7%
1.4% 1.4%
1 Before Corporate Center costs
Net sales
Net sales amounted to €1.7 billion in 2012, a decrease of 3.7%,
or 1.8% at constant exchange rates. Albert again ran successful
consumer campaigns, for example, one promotion tied to the Ice Age
3 movie and another offering collectible animal cards. Identical sales
excluding gasoline decreased 2.2% as the market was under pressure,
significantly impacted by an increase in the main value-added tax
(VAT) rate from 10% to 14%, which decreased consumer buying
power. Albert performed well compared with its competitors and
succeeded in maintaining market share, despite its share of stores
declining. In Slovakia, sales growth decreased significantly as a result
of the closing of two stores and the negative impact of competitive
store openings on identical store sales.
Albert Hypernova reported an operating profit of €3 million, a
decrease of €15 million over last year. The operating profit included
€18 million of impairment charges mainly related to stores in Slovakia.
Underlying operating margin improved and the company was able to
offset pressure on gross margins from product cost inflation and a
competitive, promotion-driven market through a focus on operational
improvements and simplification.
Capital allocation
Store portfolio development
2012
2011
Stores at the beginning of the year
306
305
New and acquired stores
2
1
Closed and divested stores
(2)
-
Number of stores at year end
306
306
Stores remodeled expanded
relocated reconstructed
17
27
Number of stores
2012
2011
Czech Republic
282
280
Slovakia
24
26
Total Other Europe
306
306
Sales area of own-operated stores
(in thousands of square meters)
453
453
In 2012, Albert's main focus areas were the project started in 2011 to
remodel all its hypermarkets to a new compact hyper format and the
opening of new and improved delis in all its supermarkets. Albert
continued the rollout of the new compact hyper format in 2012,
bringing the total new compact hypers to nine stores at year end. At
the end of 2012, Albert Hypernova operated 282 stores in the Czech
Republic, 13 of which were hypermarkets, 42 compact hypers, and
227 supermarkets. The company also operated 24 stores in Slovakia,
four of which were supermarkets and 20 hypermarkets.
