BsimEiHHta
4.6%
35.7%
59.7%
46%
54%
1.4%
43.1%
55.5%
29
Group financial review (continued)
Czech Republic
Corporate Center
Ahold at a glance
Business review
Governance
Net sales amounted to €1.5 billion in 2014, an
increase of 5.3%, or an increase of 11.7% at constant
exchange rates. The main driver impacting sales
growth was the successful integration of 49 acquired
SPAR stores, of which all 14 supermarkets were
remodeled to the Albert banner. With the acquisition
of the SPAR business we made a step increase in
our market share in the Czech Republic. After the
conversion of all the remaining SPAR stores at the end
of the first quarter of 2015, Albert will be a leading
brand in the Czech food retail market.
Identical sales excluding gasoline decreased by 1.2%
as the market continued to be significantly impacted
by competitive pressure and an increasing share of
promotional sales.
The Czech Republic reported an underlying operating
income of €19 million, down €11 million from last
year. The SPAR acquisition had a negative impact of
€12 million on underlying operating income.
Underlying operating profit margin, at 1.2%,
was 0.9 percentage points lower than last year.
Excluding SPAR, underlying operating profit margin
was 2.3%, or up 0.2 percentage points from 2013.
The acquisition of SPAR will remain slightly dilutive in
2015, but margin-enhancing from 2016 onwards.
We expect an additional one-off cost of €40 million
in 2015, related to this transaction.
During the first quarter of 2014, we successfully
completed the divestment of our Slovakian
operations, where we had a limited market position.
Underlying Corporate Center costs were €64 million,
down €7 million compared to 2013. Excluding the
impact of our self-insurance activities, underlying
Corporate Center costs were €82 million, €2 million
lower than last year.
Net sales
contribution by segment
Czech Republic
The Netherlands
Ahold USA
Online net sales
contribution by category
General
merchandis
Food
Underlying operating income
contribution by segment
Czech Republic
The Netherlands
Ahold USA
Ahold
Annual Report 2014
Net sales in 2014 and 2013 were as
follows:
million
2014
2013
Sales growth
Identical sales
growth1
Identical sales
growth ex gas1
Comparable sales
growth ex gas1
Ahold USA
25,976
26,118
(0.5)%
(0.4)%
(0.1)%
0.1%
Czech Republic (CZK)
41,908
37,522
11.7%
(1.8)%
(1.2)%
(1.1)%
million
Ahold USA
19,557
19,676
(0.6)%
(0.4)%
(0.1)%
0.1%
The Netherlands2
11,696
11,494
1.8%
(0.5)%
(0.5)%
(0.3)%
Czech Republic
1,521
1,445
5.3%
(1.8)%
(1.2)%
(1.1)%
Total
32,774
32,615
0.5%
(0.5)%
(0.5)%
(0.3)%
1 For the definition of identical and comparable sales excluding gas see non-GAAP measures at the end of this section.
2 Identical sales growth in the Netherlands excludes the VAT on tobacco sales. For the definition see non-GAAP measures at the end of
this section.
Underlying operating
income and
underlying operating
income
margin for 2014
and 2013 were as
follows:
Underlying operating income
Underlying operating margin
million
2014
2013
Change
2014
2013
pt Change
Ahold USA
980
1,064
(7.9)%
3.8%
4.1%
(0.3)% pt
million
Ahold USA
738
801
(7.9)%
3.8%
4.1%
(0.3)% pt
The Netherlands
574
619
(7.3)%
4.9%
5.4%
(0.5)% pt
Czech Republic
19
30
(36.7)%
1.2%
2.1%
(0.9)% pt
Corporate Center
(64)
(71)
9.9%
Total
1,267
1,379
(8.1)%
3.9%
4.2%
(0.3)% pt
