Ahold 1998 Net Earnings Surge 29% to NLG 1.2 Billion.ZAANDAM Zaandam (zändäm`), municipality (1991 est. pop. 130,000), North Holland prov., W Netherlands, near Amsterdam. Manufactures include food products, chemicals, lumber, and machinery. , The Netherlands--(BUSINESS WIRE)--March 9, 1999-- Highlights -- Net earnings rise strongly by 29% to NLG NLG The ISO 4217 currency code for the Dutch Guilder. 1.2 billion -- Earnings per common share increase 19% to NLG 2.06 -- Operating results rise 22% to NLG 2.2 billion -- 1998 dividend proposal: NLG 0.86 (1997: NLG 0.72) per common share -- 1999 outlook: 15-20% higher earnings per share 1998 Results Royal Ahold a·hold n. Hold; grip: "I knew I could make it all right if I got . . . back to the hotel and got ahold of that bottle of brandy" Jimmy Breslin. (NYSE NYSE See: New York Stock Exchange : AHO), the international food retailer, achieved net earnings in 1998 (53 weeks) of NLG 1206 million (1997: NLG 934 million), an increase of 29%. After deduction deduction, in logic, form of inference such that the conclusion must be true if the premises are true. For example, if we know that all men have two legs and that John is a man, it is then logical to deduce that John has two legs. of the preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) , net earnings totaled NLG 1184 million (1997: NLG 915 million). Earnings per common share rose 19% to NLG 2.06 (1997: NLG 1.74). The average number of common shares outstanding increased by 9% to 575.7 million, largely reflecting the global offerings of new equity to finance acquisitions in Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , and the placement of shares by issuing optional stock dividends. The significant increase in net earnings was mainly attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to further growth in the United States. The acquisition of US supermarket supermarket Large retail store operated on a self-service basis, selling groceries, produce, meat, bakery and dairy products, and sometimes nonfood goods. Supermarkets were first established in the U.S. during the 1930s as no-frills retail stores offering low prices. company Giant Food Inc. (`Giant-Landover') on October October: see month. 28, 1998, contributed to the increase in net earnings. The Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. , Portugal Portugal (pôr`chəgəl), officially Portuguese Republic, republic (2005 est. pop. 10,566,000), 35,553 sq mi (92,082 sq km), SW Europe, on the western side of the Iberian Peninsula and including the Madeira Islands and the Azores in the , Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. and Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. all made healthy contributions. The results in guilders were marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. influenced by the higher US dollar (NLG 1.98 in 1998 vs NLG 1.95 in 1997). At a constant exchange rate, the growth in earnings per share amounted to 17%. 1998 Sales Rise 15% to NLG 58.4 Billion Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: sales in guilders rose 15% to NLG 58.4 billion (1997: NLG 50.6 billion). Sales in the United States rose 13% to $16.2 billion (1997: $14.3 billion), all operating companies operating company A business that engages in transactions with outsiders. contributing to the increase. In particular, Stop & Shop and Giant-Carlisle generated markedly higher sales. The consolidation of Giant-Landover For other uses, see Giant Food. Giant Food LLC is a supermarket chain with 186 locations throughout Washington D.C., Virginia, Delaware, and Maryland.[1] Giant is often referred to as Giant-Landover so not to be confused with sister company Giant-Carlisle. in the 1998 fourth quarter also impacted positively. In The Netherlands, sales rose 7% to NLG 17.0 billion (1997: NLG 15.9 billion), reflecting growth at Albert Heijn Albert Heijn B.V. is a supermarket chain founded in 1887 in Oostzaan, the Netherlands. It is named after Albert Heijn senior, the founder of the first store which was a small grocery store in Oostzaan. (6%), the Schuitema wholesale organization (10%), the Institutional Food Supply company and at specialty stores Noun 1. specialty store - a store that sells only one kind of merchandise shop, store - a mercantile establishment for the retail sale of goods or services; "he bought it at a shop on Cape Cod" Etos and Gall & Gall. As in previous years, Albert Heijn, Schuitema, Etos and Gall & Gall boosted market share, slightly to significantly. In other European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. countries (Portugal, Spain Spain, Span. España (āspä`nyä), officially Kingdom of Spain, constitutional monarchy (2005 est. pop. 40,341,000), 194,884 sq mi (504,750 sq km), including the Balearic and Canary islands, SW Europe. , the Czech Republic Czech Republic, Czech Česká Republika (2005 est. pop. 10,241,000), republic, 29,677 sq mi (78,864 sq km), central Europe. It is bordered by Slovakia on the east, Austria on the south, Germany on the west, and Poland on the north. and Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, ), sales rose 20% to NLG 3.8 billion (1997: NLG 3.2 billion). Sales at Feira Nova Feira Nova is a municipality located in the Brazilian state of Sergipe. Its population was 5,476 (2005) and its area is 188 km².[1] References 1. ^ IBGE - [1] and Pingo Doce Pingo Doce is the largest supermarket chain in Portugal, owned by Jerónimo Martins. In the 1990s, Jerónimo Martins acquired Brazilian supermarket chain Sé Supermercados, which became the Brazilian equivalent to Pingo Doce. in Portugal were significantly higher. The newly opened Polish Polish (when pronounced /ˈpoʊːlɪʃ/ or /ˈpəʊːlɪʃ/) may refer to:
In Latin America, sales rose 78% to NLG 4.7 billion (1997: NLG 2.6 billion). This sharp rise reflects the full-year consolidation of Bompreco Bahia Bahia, state, Brazil Bahia (bäē`yə), state (1991 pop. 11,867,991), 216,612 sq mi (559,921 sq km), E Brazil, on the Atlantic Ocean. Salvador (also called Bahia) is the capital. in Brazil. The consolidation of Disco in Argentina and Santa Isabel Santa Isabel: see Malabo, Equatorial Guinea. Santa Isabel or Ysabel Island, central Solomon Islands, western South Pacific Ocean. based in Chile Chile (chĭl`ē, Span. chē`lā), officially Republic of Chile, republic (2005 est. pop. 15,981,000), 292,256 sq mi (756,945 sq km), S South America, west of the continental divide of the Andes Mts. , both as of the 1998 fourth quarter, also boosted sales. In Asia, sales amounted to NLG 0.9 billion, almost identical to last year. In local currency, sales rose considerably in each country. 1998 Operating Results Rise 22% to NLG 2.2 Billion Consolidated operating results rose 22% to NLG 2.2 billion (1997: NLG 1.8 billion). Operating results in the United States rose 24% to $713.5 million (1997: $574.2 million), with all operating companies, particularly Stop & Shop and Tops, contributing. The consolidation of Giant-Landover as of October 28, 1998, also impacted positively on operating results. Its integration is on schedule and operating results were above expectations. In The Netherlands, operating results rose 11% to NLG 671.3 million (1997: NLG 606.8 million). Albert Heijn and Schuitema achieved markedly higher operating results. The specialty stores improved strongly and considerably higher operating results at Ahold Institutional Food Supply contributed to the gains. In other European countries, operating results rose 20% to NLG 215.2 million (1997: NLG 179.0 million). In Portugal, Feira Nova and Pingo Doce achieved significantly higher operating results. Operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in Poland and the Czech Republic reflected the high cost of opening a large number of new stores. In Latin America, operating results rose 72% to NLG 138.5 million (1997: NLG 80.5 million). This sharp rise reflects the strongly improved results at Bompreco Bahia in Brazil and the consolidation of Disco in Argentina as of the 1998 fourth quarter. Santa Isabel based in Chile recorded a slight operating loss. In Asia, operating losses amounted to NLG 103.3 million (1997: NLG 78.6 million), reflecting costs incurred for the expansion of existing activities and the unfavorable economic climate. Corporate costs amounted to NLG 88.1 million (1997: NLG 71.3 million). The higher costs are primarily attributable to the start-up Start-up The earliest stage of a new business venture. and development of new activities. Net Financial Expense Net financial expense rose to NLG 515.4 million (1997: NLG 473.8 million), mainly caused by the consolidation of the interest expenses of Disco and Santa Isabel and the interest on the funding of the Giant-Landover acquisition including the newly issued convertible subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes. Tax Rate The tax rate, expressed as a percentage of pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta earnings, was reduced to 25% (1997: 28%). The decrease reflects changes in the composition of pre-tax earnings. Equity Ratio The capital accounts totaled 23.2% of the balance sheet total (1997: 21.4%.) Group equity, expressed as a percentage of the balance sheet total, amounted to 15.7% (1997: 19.3%). Assuming full conversion of the outstanding convertible subordinated notes (NLG 1495 million), group equity expressed as a percentage of the balance sheet total would amount to 21.7%. Stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. at 1998 year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. amounted to NLG 3.4 billion (1997: NLG 3.1 billion). Added to stockholders' equity were the proceeds of the global offerings (NLG 4.8 billion), the preferred financing shares issue (NLG 160.9 million), the paid-in capital Paid-in capital Capital received from investors in exchange for stock, but not stock from capital generated from earnings or donated. This account includes capital stock and contributions of stockholders credited to accounts other than capital stock. attributable to optional dividends (NLG 401.5 million), exercised option rights (NLG 80.4 million) and retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. (NLG 659.2 million). Goodwill paid on acquisition, primarily for Disco, Santa Isabel and Giant-Landover (in total NLG 5.2 billion) and the negative impact of exchange rate fluctuations (NLG 532.4 million) were charged to stockholders' equity. Fourth Quarter 1998 Results Fourth Quarter Net Earnings Rise 36% In the fourth quarter of 1998 (13 weeks), net earnings rose 36% to NLG 385.0 million (1997, 12 weeks: NLG 282.3 million). Earnings per common share rose 15% to NLG 0.60 (1997: NLG 0.52). Earnings in guilders in this quarter were negatively impacted by the lower average exchange rate of the US dollar (NLG 1.88 vs NLG 1.98). At a constant US dollar exchange rate, earnings per share rose 19%. The considerable growth in net earnings partly reflects the consolidation of Giant-Landover in the United States and Disco in Argentina, both as of the 1998 fourth quarter. Fourth Quarter Sales Rise 33% Consolidated sales in the 1998 fourth quarter rose 33% to NLG 16.8 billion (1997: NLG 12.6 billion) due partly to the impact of the extra week in the fiscal fourth quarter of 1998. In the United States, sales rose 41% to $4.8 billion (1997: $3.4 billion). This considerable increase reflects the consolidation of Giant-Landover in this quarter. Ahold's four other operating companies also generated higher sales. In The Netherlands, sales rose 12% to NLG 4.4 billion (1997: NLG 3.9 billion). In other European countries, sales rose 20% to NLG 1.1 billion (1997: NLG 0.9 billion). In Latin America, sales amounted to NLG 2.1 billion (1997: NLG 0.9 billion). This sharp increase reflects the consolidation in this quarter of Disco in Argentina and Santa Isabel in Chile. In Asia, sales rose 26% to NLG 252.6 million (1997: NLG 201.3 million). Fourth Quarter Operating Results Rise 31% Consolidated operating results in the 1998 fourth quarter rose 31% to NLG 703.1 million (1997: NLG 538.1 million). In the United States, operating results rose 48% to $221.3 million (1997: NLG 149.2 million). This sharp rise reflects operating results at Giant-Landover and the increased contribution of all other US operating companies. In The Netherlands, operating results rose 12% to NLG 194.1 million (1997: NLG 173.5 million), all companies contributing to the improvement. In other European countries, operating results rose 19% to NLG 82.4 million (1997: NLG 69.1 million), largely attributable to the performance at Feira Nova and Pingo Doce in Portugal. Operating losses in Poland and the Czech Republic reflect the high costs of opening a large number of new stores. In Latin America, fourth quarter operating results rose 86% to NLG 64.3 million (1997: NLG 34.5 million). This sharp increase reflects the consolidation of the results of Disco in Argentina and the significantly higher results of Bompreco in Brazil. In Asia, operating losses amounted to NLG 26.9 million (1997: NLG 14.9 million), as anticipated. Corporate costs amounted to NLG 26.1 million (1997: NLG 19.1 million). Net financial expense amounted to NLG 144.2 million (1997: NLG 111.1 million), reflecting the consolidation of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid debt of Disco and Santa Isabel as well as the interest on the funding of the Giant-Landover acquisition, including interest on the convertible subordinated notes. The tax rate was reduced to 25% (1997: 27%). 1998 Dividend Proposal It is proposed that an increased dividend of NLG 0.86 (1997: NLG 0.72) per common share of NLG 0.50 par value be paid from the 1998 results; of this amount, NLG 0.26 has already been paid as interim dividend. Stockholders can choose to receive the 1998 final dividend of NLG 0.60 (1997: NLG 0.51) per common share in the form of a pay-out of 2%, charged to the tax-free tax-free adj. Not subject to taxation; tax-exempt. tax-free Adjective not needing to have tax paid on it: a tax-free lump sum Adj. 1. additional paid-in capital additional paid-in capital Stockholder contributions that are in excess of a stock's stated or par value. For example, if a firm issues stock with a par value of $1 per share but sells the stock to investors at $10 per share, the firm's financial statements . This dividend will be made payable on May 25, 1999. The General Meeting of Stockholders will be held at the Circus Theater in The Hague Hague , The or 's Gra·ven·ha·ge The de facto capital of the Netherlands, in the western part of the country near the North Sea. The Hague grew around a palace built c. on May 11, 1999 at 2:00 pm. The 1998 annual report will be available as of April 12, 1999. Outlook for 1999 Sales and earnings in 1999 are expected to improve in all regions. The Ahold Corporate Executive Board anticipates that 1999 earnings per share, excluding currency fluctuations, will rise by 15 to 20%. This press release contains "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " within the meaning of U.S. federal securities laws. The Company's performance is subject to risks, uncertainties and other factors that could cause actual results to differ materially from these statements. Such risks include, but are not limited to, general economic conditions and changes in interest rates in the countries in which the Company operates, increases in competition, and fluctuations in exchange rates between the Guilder and the other currencies in which the Company's assets, liabilities and results are denominated, in particular, the U.S. dollar. Many of these factors are beyond the Company's ability to control or predict. For a more detailed discussion of such risks and other factors, see Royal Ahold's Annual Report on Form 20-F for its fiscal year ended December December: see month. 29, 1997. -0-
Consolidated Statement of Earnings of Royal Ahold
-------------------------------------- ----- --------------------------
4th quarter
----- -------- ------- ---------
x 1 million 1998 increase 1997
(13 in % (12
weeks) weeks)
-------------------------------------- ----- -------- ------- ---------
Sales to third parties
- United States (in dollars) USD 4,756.8 40.7 3,380.3
- The Netherlands NLG 4,373.6 12.1 3,902.8
- Other Europe NLG 1,135.0 20.3 943.2
- Latin America NLG 2,073.6 135.7 879.6
- Asia Pacific NLG 252.6 25.5 201.3
--------- ----------
Total sales NLG 16,757.9 32.9 12,611.8
--------------------------------------
Operating results
- United States (in dollars) USD 221.3 48.3 149.2
- The Netherlands NLG 194.1 11.9 173.5
- Other Europe NLG 82.4 19.2 69.1
- Latin America NLG 64.3 86.4 34.5
- Asia Pacific NLG (26.9) 80.5 (14.9)
- Corporate costs NLG (26.1) 36.6 (19.1)
--------- ----------
Total operating results NLG 703.1 30.7 538.1
Income from unconsolidated
subsidiaries and NLG 0.6 0.3
affiliates
Net interest expenses NLG (144.8) (111.4)
--------- ----------
Net financial expense NLG (144.2) (111.1)
Earnings before income taxes NLG 558.9 30.9 427.0
Income taxes NLG (138.2) (117.2)
--------- ----------
Earnings after income taxes NLG 420.7 35.8 309.8
Minority interests NLG (35.7) (27.5)
========= ----------
Net earnings NLG 385.0 36.4 282.3
========= ----------
Dividend preferred shares NLG (6.7) (4.2)
--------------------------------------
Ratios
--------------------------------------
Average number of common shares
outstanding (x 1,000)(a) 626,953 531,187
Earnings per common share of NLG
0.50 par value(b) NLG 0.60 0.52
Earnings per common share of NLG
0.50 par value as if the convertible
bond has been fully converted(b) NLG 0.60 -
Operating results as % of sales 4.20 4.27
Earnings after income taxes as % of 2.51 2.46
sales
Average exchange rate of the dollar NLG 1.88 1.98
Depreciation (x 1 million) NLG 428.1 300.1
Operating results before depreciation
(x 1 million) NLG 1,131.2 838.2
-------------------------------------- ----- --------- ----- ----------
(a) Number of shares has been adjusted for stock dividends.
(b) Earnings per common share are calculated on the basis of the
average number of common shares outstanding and after deduction
of preferred dividend.
Consolidated Statement of Earnings of Royal Ahold
------------------------------------- ---- ----------------------------
full year
---- --------- -------- ---------
x 1 million 1998 increase 1997
(53 in % (52
weeks) weeks)
------------------------------------- ---- --------- -------- ---------
Sales to third parties
- United States (in dollars) USD 16,181.6 13.2 14,298.7
- The Netherlands NLG 16,994.8 6.7 15,929.8
- Other Europe NLG 3,827.9 19.7 3,198.1
- Latin America NLG 4,664.0 77.9 2,622.1
- Asia Pacific NLG 902.6 (2.4) 924.6
--------- -----------
Total sales NLG 58,363.5 15.4 50,568.5
--------------------------------------
Operating results
- United States (in dollars) USD 713.5 24.3 574.2
- The Netherlands NLG 671.3 10.6 606.8
- Other Europe NLG 215.2 20.2 179.0
- Latin America NLG 138.5 72.0 80.5
- Asia Pacific NLG (103.3) 31.4 (78.6)
- Corporate costs NLG (88.1) 23.6 (71.3)
--------- -----------
Total operating results NLG 2,241.8 22.0 1,836.8
Income from unconsolidated
subsidiaries and NLG 24.5 6.3
affiliates
Net interest expenses NLG (539.9) (480.1)
--------- -----------
Net financial expense NLG (515.4) (473.8)
Earnings before income taxes NLG 1,726.4 26.7 1,363.0
Income taxes NLG (434.3) (382.4)
--------- -----------
Earnings after income taxes NLG 1,292.1 31.8 980.6
Minority interests NLG (86.2) (46.8)
========= -----------
Net earnings NLG 1,205.9 29.1 933.8
========= -----------
Dividend preferred shares NLG (21.9) (18.3)
--------------------------------------
Ratios
--------------------------------------
Average number of common shares
outstanding (x 1,000)(a) 575,702 527,536
Earnings per common share of NLG
0.50 par value(b) NLG 2.06 1.74
Earnings per common share of NLG
0.50 par value as if the convertible
bond has been fully converted(b) NLG 2.06 -
Operating results as % of sales 3.84 3.63
Earnings after income taxes as % of 2.21 1.94
sales
Average exchange rate of the dollar NLG 1.98 1.95
Depreciation (x 1 million) NLG 1,483.1 1,190.6
Operating results before depreciation
(x 1 million) NLG 3,724.9 3,027.4
------------------------------------- ---- --------- ------ -----------
(a) Number of shares has been adjusted for stock dividends.
(b) Earnings per common share are calculated on the basis of the
average number of common shares outstanding and after deduction
of preferred dividend.
Consolidated balance sheet of Royal Ahold
----------------------------------------------------------------------
x 1 million Jan. 3, 1999 Dec. 28, 1997
----------------------------------------------------------------------
Cash and cash equivalents NLG 1,145 NLG 655
Receivables 3,325 2,261
Inventories 4,399 3,439
Tangible and intangible fixed assets 15,299 11,494
Financial fixed assets 1,012 990
------- -------
NLG 25,180 NLG 18,839
======= =======
Current liabilities NLG 10,152 NLG 7,833
Long-term debt 6,751 5,010
Provisions 2,424 1,958
Subordinated loans 1,895 400
Minority interests 536 549
Stockholders' equity 3,422 3,089
------- -------
Group equity NLG 3,958 NLG 3,638
------- -------
NLG 25,180 NLG 18,839
======= =======
Interest-bearing debt NLG 10,584 NLG 6,985
======= =======
Capital accounts NLG 5,853 NLG 4,038
======= =======
------------------------------------------
Ratios
------------------------------------------
Number of common shares
outstanding (x 1,000)(a) 628,097 531,613
Group equity/Total assets % 15.7 19.3
Capital accounts/Total assets % 23.2 21.4
Net gearing in %(b) 238 174
Net gearing in %,
excl. capital leases 190 131
Exchange rate of the dollar
for balance sheet items NLG 1.89 NLG 2.00
------------------------------------------
Ratios as if the convertible bond
has been fully converted
------------------------------------------
Group equity/Total assets % 21.7 --
Net gearing in %(b) 145 --
Net gearing in %, excl. capital leases 110 --
------------------------------------------------------------ ----- ---
(a) Number of shares has been adjusted for stock dividends.
(b) Net gearing represents the balance of interest-bearing debt
including capital leases net of cash as a percentage of group
equity.
Consolidated Statement of Earnings of Royal Ahold
-------------------------------------- ----- --------------------------
4th quarter
----- -------- ------- ---------
x 1 million 1998 increase 1997
(13 in % (12
weeks) weeks)
-------------------------------------- ----- -------- ------- ---------
Sales to third parties
- United States (in dollars) USD 4,756.8 40.7 3,380.3
- The Netherlands EUR 1,984.6 12.1 1,771.0
- Other Europe EUR 515.0 20.3 428.0
- Latin America EUR 940.9 135.7 399.2
- Asia Pacific EUR 114.6 25.5 91.4
--------- ----------
Total sales EUR 7,604.4 32.9 5,723.0
--------------------------------------
Operating results
- United States (in dollars) USD 221.3 48.3 149.2
- The Netherlands EUR 88.1 11.9 78.8
- Other Europe EUR 37.4 19.2 31.3
- Latin America EUR 29.2 86.4 15.7
- Asia Pacific EUR (12.2) 80.5 (6.8)
- Corporate costs EUR (11.8) 36.6 (8.7)
--------- ----------
Total operating results EUR 319.0 30.7 244.2
Income from unconsolidated
subsidiaries and EUR 0.3 0.1
affiliates
Net interest expenses EUR (65.7) (50.5)
--------- ----------
Net financial expense EUR (65.4) (50.4)
Earnings before income taxes EUR 253.6 30.9 193.8
Income taxes EUR (62.7) (53.2)
--------- ----------
Earnings after income taxes EUR 190.9 35.8 140.6
Minority interests EUR (16.2) (12.5)
========= ==========
Net earnings EUR 174.7 36.4 128.1
========= ==========
Dividend preferred shares EUR (3.0) (1.9)
--------------------------------------
Ratios
--------------------------------------
Average number of common shares
outstanding (x 1.000)(a) 626,953 531,187
Earnings per common share of EUR
0.23 par value(b) EUR 0.27 0.24
Earnings per common share of EUR
0.23 par value as if the convertible
bond has been fully converted(b) EUR 0.27 -
Operating results as % of sales 4.20 4.27
Earnings after income taxes as % of 2.51 2.46
sales
Average exchange rate of the dollar EUR 0.85 0.90
Depreciation (x 1 million) EUR 194.3 136.2
Operating results before depreciation
(x 1 million) EUR 513.3 380.4
-------------------------------------- ----- --------- ----- ----------
(a) Number of shares has been adjusted for stock dividends.
(b) Earnings per common share are calculated on the basis of the
average number of common shares outstanding and after deduction
of preferred dividend.
Consolidated Statement of Earnings of Royal Ahold
-------------------------------------- ---- ---------------------------
full year
---- --------- -------- --------
x 1 million 1998 increase 1997
(53 in % (52
weeks) weeks)
-------------------------------------- ---- --------- -------- --------
Sales to third parties
- United States (in dollars) USD 16,181.6 13.2 14,298.7
- The Netherlands EUR 7,711.9 6.7 7,228.6
- Other Europe EUR 1,737.0 19.7 1,451.2
- Latin America EUR 2,116.4 77.9 1,189.9
- Asia Pacific EUR 409.6 (2.4) 419.6
--------- ----------
Total sales EUR 26,484.2 15.4 22,947.0
--------------------------------------
Operating results
- United States (in dollars) USD 713.5 24.3 574.2
- The Netherlands EUR 304.6 10.6 275.4
- Other Europe EUR 97.6 20.2 81.2
- Latin America EUR 62.8 72.0 36.5
- Asia Pacific EUR (46.9) 31.4 (35.6)
- Corporate costs EUR (40.0) 23.6 (32.4)
--------- ----------
Total operating results EUR 1,017.3 22.0 833.5
Income from unconsolidated
subsidiaries and EUR 11.1 2.8
affiliates
Net interest expenses EUR (245.0) (217.8)
--------- ----------
Net financial expense EUR (233.9) (215.0)
Earnings before income taxes EUR 783.4 26.7 618.5
Income taxes EUR (197.1) (173.5)
--------- ----------
Earnings after income taxes EUR 586.3 31.8 445.0
Minority interests EUR (39.1) (21.2)
========= ==========
Net earnings EUR 547.2 29.1 423.8
========= ==========
Dividend preferred shares EUR (9.9) (8.3)
--------------------------------------
Ratios
--------------------------------------
Average number of common shares
outstanding (x 1.000)(a) 575,702 527,536
Earnings per common share of EUR
0.23 par value(b) EUR 0.93 0.79
Earnings per common share of EUR
0.23 par value as if the convertible
bond has been fully converted(b) EUR 0.93 -
Operating results as % of sales 3.84 3.63
Earnings after income taxes as % of 2.21 1.94
sales
Average exchange rate of the dollar EUR 0.90 0.88
Depreciation (x 1 million) EUR 673.0 540.3
Operating results before depreciation
(x 1 million) EUR 1,690.3 1,373.8
------------------------------------- ---- --------- ------ -----------
(a) Number of shares has been adjusted for stock dividends.
(b) Earnings per common share are calculated on the basis of the
average number of common shares outstanding and after deduction
of preferred dividend.
Consolidated Balance Sheet of Royal Ahold
------------------------------------------------------------ ---------
x 1 million Jan. 3, 1999 Dec. 28, 1997
------------------------------------------------------------ ---------
Cash and cash equivalents EUR 519 EUR 297
Receivables 1,509 1,026
Inventories 1,996 1,561
Tangible and intangible fixed assets 6,942 5,216
Financial fixed assets 460 449
------- -------
EUR 11,426 EUR 8,549
======= ========
Current liabilities EUR 4,607 EUR 3,555
Long-term debt 3,063 2,273
Provisions 1,100 888
Subordinated loans 860 182
Minority interests 243 249
Stockholders' equity 1,553 1,402
------- -------
Group equity EUR 1,796 EUR 1,651
------- -------
EUR 11,426 EUR 8,549
======= =======
Interest-bearing debt EUR 4,803 EUR 3,170
======= =======
Capital accounts EUR 2,656 EUR 1,833
======= =======
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Ratios
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Number of common shares
outstanding (x 1,000)(a) 628,097 531,613
Group equity/Total assets % 15.7 19.3
Capital accounts/Total assets % 23.2 21.4
Net gearing in %(b) 238 174
Net gearing in %, excl. capital leases 190 131
Exchange rate of the dollar
for balance sheet items EUR 0.86 EUR 0.91
------------------------------------------
Ratios as if the convertible bond
has been fully converted
------------------------------------------
Group equity/Total assets % 21.7 --
Net gearing in %(b) 145 --
Net gearing in %, excl. capital leases 110 --
------------------------------------------------------------ ----- ---
(a) Number of shares has been adjusted for stock dividends.
(b) Net gearing represents the balance of interest-bearing debt
including capital leases and net cash as a percentage of group
equity.
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