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33
Group financial review (continued)
The Netherlands
Ahold at a glance I Business review I Governance I Financials I Investors
million
2015
(53 weeks)
2014
(52 weeks)
Change versus
prior year
change
Net sales
12,699
11,696
1,003
8.6%
Operating income
557
584
(27)
(4.6)%
Adjusted for:
Impairments
19
21
(2)
(Gains) Losses on the sale of assets
(7)
(14)
7
Restructuring and related charges and other items
9
(17)
26
Underlying operating income
578
574
4
0.7%
Underlying operating income margin
4.6%
4.9%
(0.3)% pt
In 2015, net sales in The Netherlands were
€12,699 million, up by 8.6%, or €1,003 million,
compared to 2014. Compared to the adjusted 2014
sales, net sales increased in 2015 by €747 million,
or 6.3%.
This increase was mainly driven by the 3.2%
growth in identical sales; the conversion of former
C1000 stores in the Netherlands (which contributed
approximately 1.0 percentage points to the sales
growth); the opening of new Albert Heijn stores
in Belgium (which contributed approximately 0.9
percentage points to the sales growth); and further
expansion of our store network in the Netherlands.
The identical sales growth in the Netherlands of 3.2%
was fueled by double-digit sales growth of our online
operations here. Adjusted for the additional week in
2015, net sales at bol.com increased by 26.2% and
at Albert Heijn Online net sales went up by 26.4%
as a result of the business expanding its geographic
reach through the opening of an additional 18
pick-up points in the Netherlands and Belgium and
attracting new customers in our existing market areas.
Albert Heijn's identical sales growth was driven by
attractive commercial programs and improvements to
its assortment that were well-received by its customers.
For the full year, market share at Albert Heijn
increased to 35.0% (source: Nielsen), positively
impacted by the conversion of 17 more former
C1000 supermarkets into our Albert Heijn format.
As of January 3, 2016, Ahold had reached
agreement with 75 franchisees, of which 71 stores
have been converted and opened under the Albert
Heijn banner and four stores have been divested
upon acquisition. For the remaining seven stores,
Ahold did not reach agreements with the franchisees
and these stores have been transferred back
to Jumbo.
Ahold
Annual Report 2015
Bol.com delivered strong double-digit growth in
net consumer online sales of 35.3%. Compared to
the adjusted 2014 sales, net consumer online sales
increased by 32.7% as in previous years fueled
by the launch of new categories and accelerated
growth in Belgium as well as the success of Plaza.
This platform offers a marketplace to merchant
partners and is an important driver in delivering
on our 2017 ambition of €2.5 billion in net
consumer online sales.
Operating income decreased by €27 million, or
4.6%, to €557 million, affected by the following
items that Ahold adjusts for to arrive at its underlying
operating income:
a Impairments: During 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 of stores 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.
a (Gains) Losses on the sale of assets: In 2015,
Ahold sold assets with an aggregate gain of
€7 million and in 2014 with an aggregate gain
of €14 million. No individually significant gains
or losses were recorded in 2015 or 2014.
a Restructuring and related charges and other
items: The charges in 2014 included gains from
the Dutch pension plan amendments totaling
€50 million. These were partly offset by the
€24 million restructuring charge related to the
European reorganization.
In 2015, underlying operating income in the
Netherlands was €578 million, up by €4 million
or 0.7% from €574 million in 2014. The underlying
operating margin of the Netherlands was 4.6%
in 2015, down 0.3 percentage points compared
to 2014. Excluding bol.com, the underlying operating
income margin was 5.0% in 2015, down by 0.2
percentage points compared to 2014.
Our online businesses in the Netherlands operate
at a lower margin and their accelerated growth has
a dilutive impact on the segment's overall margin.
This additional dilutive affect was in line with our
full-year expectations of 25 basis points.
In addition, the underlying operating income margin
in The Netherlands was negatively impacted by
higher pension costs as a result of lower interest rates
as well as one-off costs from the glassware collection
campaign in the first quarter of 2015.
Our net sales in the Netherlands consist of sales
to consumers and to franchise stores. Franchise stores
operate under the same format as Ahold-operated
stores. Franchisees purchase merchandise primarily
from Ahold, pay a franchise fee and receive support
services, including management training, field
support and marketing and administrative assistance.
