BsimEiHHta
30
Group financial review (continued)
million
million
million
Gross profit
Operating expenses
Operating income
Ahold at a glance I Business review
Governance
Net sales
30,098
5.5%
32,682
3.6%
201"
2012
2013
2014
2015
Net sales
Net sales growth at constant exchange rates*
Sales growth in 2015 is adjusted for the impact of week 53
Online sales
i Online sales*
Contribution to Ahold's net sales
r During 2012 Ahold acquired bol.com
Underlying operating income
1,377 I 1,412 I 1,379 I1 1,461
I I I 1,267 I
Ahold's gross profit increased by €1,682 million,
or 19.4% compared to 2014. At constant exchange
rates, gross profit increased by €568 million or 5.8%.
Gross profit margin (gross profit as a percentage of
net sales) for 2015 was 271%, an increase of 0.6%
compared to 26.5% in 2014, or 0.3% at constant
exchange rates. This increase was primarily driven by
lower gasoline sales in the United States as a result
of lower gasoline prices. Gasoline sales have a
lower gross profit margin compared to non-gasoline
sales, therefore the proportionately lower gasoline
sales have a positive effect on the overall gross
profit margin. Excluding the sale of gasoline, and at
constant exchange rates, gross profit margin was flat.
In 2015, operating expenses increased by
€1,614 million, or 21.7%, to €9,050 million,
compared to €7,436 million in 2014. At constant
exchange rates, operating expenses increased
by €641 million or 76%.
As a percentage of net sales, operating expenses
increased by 1.0% to 23.7%, or 0.7% to 23.0%
at constant exchange rates. Approximately 0.3% of
the increase at constant exchange rates is explained
by the relatively lower proportion of gasoline sales
as a part of net sales. Excluding gasoline sales and
at constant exchange rates, operating expenses as
a percentage of net sales increased by 0.4%.
This increase of 0.4% is mainly explained by higher
impairments and restructuring charges and, in line
with the guidance that was provided, increased
pension costs in the Netherlands, and the additional
dilutive impact of our online businesses on expenses
in The Netherlands.
201"
2012 2013 2014
2015
Underlying operating income
Underlying operating margir
Ahold
Annual Report 2015
Operating expenses include impairments, gains
losses on the sale of assets, restructuring and
related charges and other items that management
believes can distort an understanding of the
trend related to the development of its underlying
business. Impairments, gains (losses) on the sale
ofassets and restructuring and related charges
are summarized below:
Impairment of assets
Ahold recorded the following impairments and
reversals of impairments of assets in 2015 and 2014:
million
2015
2014
Ahold USA
(20)
(10)
The Netherlands
(19)
(21)
Total
(39)
(31)
Impairment charges in 2015 were €39 million,
up by €8 million compared to 2014. In 2015, an
impairment charge of €9 million was recorded for
a write-down of prepaid consideration for stores
transferred back to Jumbo (related to the transfer
ofstores from Jumbo in 2012). The 2014 impairment
charges included €8 million related to the write-down
of prepaid consideration related to the transfer
of stores from Jumbo. The remaining impairment
charges in 2015, as well as the impairment
charges incurred during 2014, mainly related
to underperforming stores.
Gains and losses on the sale of assets
Ahold recorded the following gains on the sale
of non-current assets in 2015 and 2014:
million
2015
2014
Ahold USA
11
6
The Netherlands
7
14
Total
18
20
Restructuring and related charges and other items
Restructuring and related charges and other items
in 2015 and 2014 were as follows:
million
2015
2014
Ahold USA
(53)
(7)
The Netherlands
(9)
17
Czech Republic
(16)
(6)
Corporate Center
(44)
(10)
Total
(122)
(6)
Restructuring and related charges and other items
in 2015 were €122 million, up by €116 million
compared to 2014. The increase is due to a
restructuring of Ahold USA's support office in
2015 (negatively affecting operating income by
€14 million), as well as an early retirement incentive
offered to Giant Landover store employees (an impact
of €17 million). Restructuring charges recognized
in the Czech Republic were mainly related to the
acquisition of SPAR in 2014. Corporate Center
restructuring charges for 2015 were mainly
transaction costs related to the intended merger
with Delhaize (€37 million).
In 2014, restructuring and related charges and
other items included gains from the Dutch pension
plan amendments totaling €59 million (of which
€50 million was in The Netherlands and €9 million
at Corporate Center). These were partly offset by
the €40 million restructuring charge related to the
European reorganization (of which €24 million
was in The Netherlands and €16 million at
Corporate Center).
Operating income in 2015 increased by
€68 million, or 5.4%, to €1,318 million compared
to €1,250 million in 2014. The increase of
€68 million is the difference between the higher
gross profit of €1,682 million and higher operating
expenses of €1,614 million. The changes in profit
and expenses are explained above.
