1
r
Financial review (continued)
Operating income
million
million
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Ahold Annual Report 2013 38
In 2013, operating income was €1,239 million,
down €97 million or 7.3% compared to 2012.
Underlying operating income (which excludes
impairments, gains on the sale of assets,
restructuring and related charges, and other
unusual items listed below) was €1,379 million in
2013, down €33 million or 2.3% (down 0.5% at
constant exchange rates). Underlying operating
margin, at 4.2% of net sales in 2013, was 0.1
percentage point lower compared to 2012. This was
due to higher pension expense in the Netherlands
as well as investments in both value and growth in
our main markets, which were partly compensated
by cost savings from our Simplicity program.
Ahold USA
Ahold USA achieved an underlying operating income
of $1,064 million, which was $32 million lower than
last year. Underlying operating profit margin at 4.1%
decreased by 0.1 percentage point. In a competitive
environment, operational improvements and
simplification were more than offset by challenged
volume growth, resulting in increased expenses as a
percentage of sales. 2013 operating income included
$181 million (€138 million) of unusual items (see
further below).
The Netherlands
The Netherlands reported an underlying operating
income of €619 million, an improvement of €4 million
over last year. The year-over-year underlying margin
was down 0.2 percentage points to 5.4%, primarily
impacted by higher non-cash pension charges.
Continued cost savings initiatives helped fund price
investments in an intensified promotional environment.
2013 operating income included €7 million of unusual
items (see further below).
Czech Republic
Albert reported an underlying operating income of
€30 million, an improvement of €3 million over last
year. Underlying operating profit margin, at 2.1%,
improved by 0.3 percentage points over last year.
Despite the competitive environment and lower
consumer spending, Albert was again able to improve
its performance through a continuous focus on
operational improvements and simplification.
Corporate Center
Underlying Corporate Center costs were €71 million,
down €11 million compared to 2012. Excluding the
impact of our self-insurance activities, underlying
Corporate Center costs were €84 million, €2 million
higher than last year.
Underlying operating income
Underlying operating income
1,367 11,376 1,377
4.7% 4.(
Ahold USA
The Netherlands
Czech Republic
Total (before
Corporate
Center costs)
2009
2010
2011
2012
2013
Underlying operating income 1
Underlying operating margin
1 Including restatement,, see Note 3 to the consolidated financial
statements for an explanation of the restatements.
Underlying operating income and underlying operating income margin for 2013 and 2012 (as restated)
were as follows:
million
Underlying operating income
Underlying operating margin
2013
20121
Change
2013
CN
O
CN
pt Change
Ahold USA
1,064
1,096
(2.9)%
4.1%
4.2%
(0.1)%
million
Ahold USA
801
852
(6.0)%
4.1%
4.2%
(0.1)%
The Netherlands
619
615
0.7%
5.4%
5.6%
(0.2)%
Czech Republic
30
27
11.1%
2.1%
1.8%
0.3%
Corporate Center
(71)
(82)
13.4%
Total
1,379
1,412
(2.3)%
4.2%
4.3%
(0.1)%
1 See Note 3 to the consolidated financial statements for an explanation of the restatements.
