Group financial review continued
355
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Delhaize America on a pro forma basis
(24)
(5.0)%
(2)
3.7%
6
7
6
9
On a pro forma basis, net sales in 2016 were
€15,501 million, up by 2.3%, or €355 million,
compared to 2015. At constant exchange
rates, sales were up by 1.9%. The increase was
mainly driven by comparable sales growth of
2.1%. Both Food Lion and Hannaford continued
to experience positive comparable sales and
volume growth. Sales growth versus last year
was adversely impacted by overall market
deflation in main product categories. This was
most noticeable in the second half of the
year and in the Meat and Dairy categories.
In addition, price pressure at Food Lion resulted
from a more intense competitive environment.
Food Lion continued with its “Easy, Fresh
Affordable... You Can Count on Food Lion
Every Day” strategy, relaunching 142 stores
in the Charlotte, North Carolina market
after extensive remodeling during the year.
Previously launched “Easy, Fresh Affordable”
markets in North Carolina, Wilmington,
Greenville and Raleigh, continue to perform
according to plan both in terms of sales
and costs.
On a pro forma basis, underlying operating
income in 2016 was €538 million, up by
€19 million compared to last year. At constant
rates, underlying operating income increased
by 3.3%. Delhaize America’s underlying
operating income margin in 2016 was 3.5%,
up 0.1 percentage points compared to 2015.
The increase reflects positive gross profit
results driven by volume growth and higher
vendor allowances following a decision to add
more local products to our assortment.
Pro forma operating income was €459 million.
Underlying operating income is adjusted
for the following items, which impacted
operating income:
Impairments: Impairments amounted
to €6 million. No individually significant
impairments were recorded in 2016 or 2015.
(Gains) Losses on the sale of assets:
No individually significant gains or losses
were recorded in 2016 or 2015.
Restructuring and related charges and
other items: 2016 charges of €66 million,
were mostly related to integration costs
of €37 million due to merger. In addition,
it includes the settlement of share-based
payments plan prior to the merger
(€15 million) and costs due to Hurricane
Matthew in Q4 (€11 million).
21
519
3.4%
6.6%
45
19
million
Net sales
Comparable sales growth
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
Underlying EBITDA margin
2015
15,146
2.1%
483
change
23%
Change versus
prior year
66
538
3.5%
6.6%
2016
15,501
2.1%
459
57
