Group financial review continued
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
The Netherlands on a pro forma basis
27
4.9%
10.4%
The comparable sales growth in The
Netherlands of 4.1% was fueled by double
digit sales growth at our online operations.
Adjusted for the additional week in 2015,
net sales at bol.com increased by 25.0%
and at Albert Heijn Online by 29.7% because
On a pro forma basis, net sales in 2016 were
€13,015 million, up by 3.1% or €391 million
compared to 2015. Compared to sales adjusted
for week 53 in 2015, net sales increased in 2016
by €653 million, or 5.3%.
This increase was mainly driven by the 4.1%
growth in comparable sales; the full year
impact of the conversion of former C1000
stores in the Netherlands; the full year impact
of last year’s opening of new Albert Heijn stores
in Belgium; and further expansion of our store
network in the Netherlands. In 2016 Albert Heijn
started a pilot with Albert Heijn to go stores at
gas stations.
15
2
both brands were able to attract more sales
from existing customers, and attract new
customers in existing areas. Albert Heijn’s
comparable sales growth was driven by its
ability to attract customers through its newly
introduced own-brand products, own-brand
quality improvements, innovative products
and the expansion of its healthy food offering.
In December, Albert Heijn was named best
supermarket in the Netherlands by market
research company GfK.
For the full year, market share at Albert Heijn
increased to 35.2% (source: Nielsen), driven by
the growth of Albert Heijn Online and Albert
Heijn to go.
Bol.com delivered strong double-digit
growth in net consumer online sales of 32.5%.
Compared to sales adjusted for week 53 in 2015,
net consumer online sales increased by 35.5%,
as in previous years fueled by new categories
and accelerated growth in Belgium as well as
the success of the Plaza platform. This platform
offers a marketplace to merchant partners and
is an important driver in delivering on our 2020
ambition to double net consumer online sales.
Pro forma operating income increased by
€27 million, or 4.9%, to €578 million, affected by
the following items that Ahold Delhaize adjusts
for to arrive at its underlying operating income:
Impairments: During 2016, 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 2015 impairment charges included
€8 million related to the write-down of
prepaid consideration from the transfer of
stores from Jumbo. The remaining impairment
charges in 2016, as well as the impairment
charges incurred during 2015, mainly related
to underperforming stores.
(Gains) Losses on the sale of assets: In
2016, The Netherlands sold assets with an
aggregate loss of €2 million and in 2015
with an aggregate gain of €8 million.
No individually significant gains or losses were
recorded in 2016 or 2015.
Restructuring and related charges and other
items: The charges in 2016 related mainly to
costs related to a lump-sum compensation for
a reduction in benefits for employees in the
Netherlands (€28 million) and integration cost
(€4 million).
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 dilutive
affect was slightly higher at 0.1 percentage
points compared to last year as result of
the continuous strong sales growth of our
online businesses.
Our net sales in The Netherlands consist of
sales to consumers and to franchise stores.
Franchise stores operate under the same
format as Ahold Delhaize-operated stores.
Franchisees purchase merchandise primarily
from Ahold Delhaize, pay a franchise fee
and receive support services, including
management training, field support and
marketing and administrative assistance.
In 2016, pro forma underlying operating
income in The Netherlands was €629 million,
up by €59 million or 10.4% from €570 million
in 2015. The underlying operating margin
of The Netherlands was 4.8% in 2016, up
0.3 percentage points compared to 2015.
Excluding bol.com, the underlying operating
income margin was 5.4% in 2016, up by
0.4 percentage points compared to 2015.
Margins mainly improved as a result of a timing
difference between the realization of buy for
less simplicity savings and the reinvestments
in the customer proposition, as well as
improvements in the cost base.
19
(8)
(4)
10
26
59
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
8
570
4.5%
6.7%
Change versus
prior year
391
change
2015
(53 weeks)
12,624
3.7%
551
34
629
4.8%
7.0%
2016
(52 weeks)
13,015
4.1%
578
58
