Group financial review continued
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
(0.4)%
(0.1)% pt
94o
4.0%
578
10.0%
4.6%
0.3% pt
1.5%
2.1% pt
3.8%
-% pt
Underlying operating income and underlying
operating income margin
Underlying operating income was €1,899 million
in 2016, up €438 million or 30.0%, versus
€1,461 million in 2015.
Underlying operating income margin in 2016
was 3.8%, compared to 3.8% in 2015. At constant
exchange rates, underlying operating income
was up by €432 million, or 29.5%, compared to
2015, which was €393 million higher as result of
the merger with Delhaize Group.
The changes in underlying operating income,
excluding the impact of the merger with
Delhaize Group, are mainly a reflection of
improved margins in The Netherlands.
Margins in The Netherlands segment mainly
improved as a result of higher vendor
allowances, lower operating expenses and
a timing difference between the realization
of buy for less simplicity savings and the
reinvestments in the customer proposition.
The improvement was partially offset by
additional investments in our online businesses,
as part of our future growth strategy. 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 effect, at
0.1 percentage points, was slightly higher
than last year as a result of the stronger
sales performance.
Tight cost management remains a core
part of our business model. This enables
us to continue to invest in our competitive
position and, at the same time, our businesses
benefit from optimized store processes and
improved sourcing.
Underlying operating income and underlying operating income margin for 2016 and 2015 were
as follows:
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).
3.9%
3.6%
4.9%
2.5%
127
(108)
1,899
936
252
636
56
20151
1,043
27
(84)
1,461
370.4%
(28.6)%
30.0%
Underlying operating income
2016' 20151 chan
1,034 1,043 (0.9)%
275
million
Ahold USA
Delhaize America
million
Ahold USA
Delhaize America
The Netherlands
Belgium
Central and
Southeastern Europe
Global Support Office
Total
3.6%
3.8%
Underlying operating margin
2016 2015 pt chan
3.9% 40% (0.1)% pt
3.6%
53
