Group financial review
On July 23, 2016, the merger
between Ahold and Delhaize
Group was completed. Legally,
the merger was implemented
by Delhaize Group merging into
Ahold, with the entity renamed
Ahold Delhaize.
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Group performance on an IFRS basis
30.0%
Consequently, Delhaize Group’s financial
results are included in our consolidated
financial statements since the merger
date, affecting comparability of the 2016
financial results to the 2015 results. Due to
the significance of Delhaize Group’s results to
the Company, the Delhaize Group sales and
operating expense categories and the merger-
related integration and restructuring activities
in 2016 are the main drivers of the changes in
results of operations when compared to the
2015 results.
This review also provides numbers and
analysis on a pro forma basis. The pro forma
data is based on the assumption that the
merger became effective on the first day of
Ahold’s 2015 financial year. This provides a
comparative basis, for illustrative purposes,
to facilitate assessment of the current
performance of the combined company.
The following main adjustments to the
combined historical data were made to arrive
at the pro forma information:
Exclusion of the performance of remedy
stores and other divestments
Exclusion of merger transaction costs
Inclusion of purchase price allocation effects
on Delhaize assets and liabilities, impacting
depreciation and amortization, net interest
expense and rent
Alignment of Global Support Office
functions and related costs
Alignment of foreign exchange rates for
consolidation of foreign group entities
39
(18)
1 For the former Ahold segments, including the operating segment within Central and Southeastern Europe, the number
of weeks included for 2016 is 52 weeks (2015: 53 weeks). Net sales from former Delhaize segments are included as of
July 24, 2016.
Week 53
Our financial year consists of 52 or 53 weeks and ends on the Sunday nearest to December 31.
Financial year 2016 consisted of 52 weeks, while 2015 consisted of 53 weeks for the former Ahold
businesses. Net sales in 2015 were positively impacted by the additional week, while the impact
on operating margins for the Group was negligible. In some of the discussions below, we have
included comparisons of 2016 with 2015 excluding week 53 (referred to as “adjusted for week 53
in 2015”).
65
(4)
104
(22)
122
1,461
3.8%
2
851
1,318
million
Net sales
Cost of sales
Gross profit
Operating expenses
Operating income
Net financial expense
Income before income taxes
Income taxes
Share in income of joint ventures
Income from continuing operations
Income (loss) from discontinued
operations
Net income
Operating income
Adjusted for:
Impairments
(Gains) Losses on the sale of assets
Restructuring and related
charges and other items
Underlying operating income
Underlying operating income margin
111
438
-% pt
(2)
(21)
266
2016'
49,695
(36,317)
13,378
(11,794)
1,584
(541)
1,043
(247)
34
830
830
1,584
2015'
38,203
(27,760)
10,443
(9,125)
1,318
(265)
1,053
(224)
20
849
(100.0)%
(2.5)%
20.2%
change
30.1%
(30.8)%
28.1%
(29.2) %
20.2%
(104.2)%
(0.9)%
(10.3) %
70.0%
(2.2)%
Change
versus prior
year
11,492
(8,557)
2,935
(2,669)
266
(276)
(10)
(23)
14
(19)
233
1,899
3.8%
