Group financial review continued
83
Overview
Business review Governance
Financials
Investors
Ahold Delhaize Annual Report 2016
Belgium on a pro forma basis
96
17
40.7%
(3)
(4)
On a pro forma basis, net sales in 2016
were €4,942 million, up by 1.7% or €83 million
compared to 2015. This was mainly driven
by comparable sales growth of 1.7%. This was
a result of inflation and continued good
performance in the affiliated network, while
volume growth was negative in the company-
operated stores. For the year, Belgium’s
market share was stable compared to last
year at 24.1%.
During the fourth quarter of 2016, 10 Red
Market stores were converted and added
to the Delhaize affiliate store network.
The remaining three Red Market stores will
be converted in 2017.
Pro forma operating income increased by
€96 million, to €97 million compared to 2015.
Underlying operating income is adjusted
for the following items, which impacted
operating income:
In 2016, Delhaize Belgium reached an
important milestone in the implementation of
its Transformation Plan, completing the rollout
of the new store organization to simplify the
organizational structure and processes in
its supermarkets.
Impairments: No individually significant
gains or losses were recorded in 2016.
(Gains) Losses on the sale of assets: No
individually significant gains or losses were
recorded in 2016.
Restructuring and related charges and
other items: The charges in 2016 related
to integration costs of €7 million and
restructuring costs of €7 million. In 2015,
charges mainly included €32 million
in Transformation Plan charges and a
€25 million competition fine.
On a pro forma basis, underlying operating
income in 2016 was €121 million, up by
40.7%, or €35 million compared to last year.
Underlying operating income margin in 2016
was 2.4, up 0.6 percentage points compared
to 2015. Better underlying operating income
was mainly a result of lower operational labor
costs in the stores as a result of Transformation
Plan savings.
Our net sales in Belgium consist of sales
to consumers and to affiliate stores.
Affiliates receive goods at a wholesale
price which comprises a mark-up on our
purchase price.
14
(4)
(54)
35
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
68
86
1.8%
4.8%
2015
4,859
0.2%
1
change
L7§"
Change versus
prior year
14
121
2.4%
5.4%
2016
4,942
1.7%
97
59
