Ahold 3Q Results Rise 34.1% To NLG 209.7 Million.ZAANDAM, The Netherlands--(BUSINESS WIRE)--Nov. 25, 1997-- Third Quarter Highlights - Net earnings rise 34.1% to NLG NLG The ISO 4217 currency code for the Dutch Guilder. 209.7 million - Operating results increase 31.7% to NLG 405.1 million - Sales rise 32.5% to NLG 12.3 billion - Earnings per share rise 30.2% to NLG 0.40 - Corporate Executive Board confirms favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. 1997 earnings outlook 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), a leading international food retailer, today announced that it achieved net earnings in the 1997 third quarter (12 weeks ending October 5, 1997) of NLG 209.7 million (1996: NLG 156.4 million), a 34.1% rise. After deduction 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 205.5 million (1996: 152.2 million). Earnings per common share amounted to NLG 0.40 (1996: NLG 0.30), a rise of 30.2%. The average number of common shares outstanding increased to 520.2 million. The results in guilders were positively influenced by the higher exchange rate of the US dollar (NLG 2.04 vs. NLG 1.68). Currency fluctuations, especially the higher dollar exchange rate, increased sales by NLG 1.2 billion and net earnings by NLG 21.1 million. Excluding the influence of the higher dollar exchange rate, the growth in earnings per share amounted to 15.3%. Ahold 3rd quarter sales increase 32.5% to NLG 12.3 billion Consolidated sales in guilders amounted to NLG 12.3 billion (1996: NLG 9.3 billion), a 32.5% rise. In 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. , sales increased by 6.8% to USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 3.3 billion (1996: USD 3.1 billion). Excluding the stores sold at year-end 1996, sales increased by 9.1%. In particular, Stop & Shop and BI-LO generated significantly higher sales. In The Netherlands, sales amounted to NLG 3.7 billion (1996: NLG 3.4 billion), an increase of 9.2%. Third quarter sales and market share of both 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. and Schuitema continued to increase compared to the same 1996 period. Etos and Gall & Gall, two Ahold 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" , also increased both sales and market share. Sales were also up at Ahold Institutional Food Supply (GVA GVA general visceral afferent system of nerves. ). In other European countries (Poland, Portugal, Spain and 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. ), sales increased 23.5% to NLG 832.1 million (1996: NLG 673.5 million). Consolidated sales of Latin American activities, Brazil, amounted to NLG 785.3 million. In Asia Pacific, sales totaled NLG 220.5 million. Ahold 3rd quarter operating results increase 31.7% to NLG 405.1 million Operating results for the 1997 third quarter amounted to NLG 405.1 million (1996: NLG 307.6 million), an increase of 31.7%. In the United States, operating results amounted to USD 123.5 million (1996: USD 97.8 million), up 26.3% compared to the 1996 third quarter. This increase is largely due to Stop & Shop and BI-LO's significantly improved operating results. Operating results for Giant Food Stores (including Edwards) also improved. As a consequence of disappointing sales, Tops (including Finast) achieved lower operating results compared to the same period last year. In The Netherlands, operating results amounted to NLG 139.1 million (1996: NLG 122.9 million), a 13.8% increase. Both Albert Heijn and Schuitema achieved considerably higher operating results. Etos and Gall & Gall generated considerably higher operating results while those of Jamin decreased. Ahold Institutional Food Supply (GVA) also achieved significantly higher operating results in comparison to the corresponding 1996 period. In other European countries, operating results amounted to NLG 44.0 million (1996: NLG 40.2 million), an increase of 9.5% compared to last year's third quarter. Portugal generated considerably higher operating results through tight control of margin and costs. The Czech Republic's operating results, affected by flooding, stayed at about the same level as last year. Start-up costs in Poland and Spain were charged to the operating results. Operating results 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. , Brazil, amounted to NLG 9.8 million. This result was influenced negatively by the consolidation of the SuperMar chain in Bahia, as from July 1, 1997. In 1998, this chain will be contributing to operating results. Asia Pacific showed 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. of NLG 25.6 million (1996: NLG 6.8 million loss), largely attributable to regional start-up costs. The unfavorable economic climate also affected operating results negatively. Third quarter corporate costs amounted to NLG 14.4 million (1996: NLG 12.9 million). These higher costs can be attributed mainly to the development and start-up of new activities. Net financial expense Net financial expense amounted to NLG 116.0 million (1996: NLG 87.9 million). This increase reflects primarily the higher dollar exchange rate and the financing of new activities. Tax rate The tax rate, expressed as a percentage of pre-tax earnings, amounted to 25.6% (1996: 24.1%). This increase results from changes in the composition of earnings before taxes. Equity ratio strengthens Group equity, expressed as a percentage of the balance sheet total, amounted to 20.1% (at 1996 year-end: 18.5%). Capital accounts totaled 22.4% of the balance sheet total (at 1996 year-end: 21.2%). 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. rose to NLG 3.1 billion (at 1996 year-end: NLG 2.4 billion). Added to stockholders' equity were the net results of the first three quarters of the year, after deduction of the interim dividend on common shares and preferred dividend for the first three quarters. Also added to stockholders' equity was the paid-in equity capital attributable to optional stock dividends and employee option rights. Goodwill paid for acquisitions, amounting to NLG 374.5 million (primarily Thailand and SuperMar in Brazil), were fully charged to stockholders' equity. Ahold net earnings in first three quarters: 56.6% rise to NLG 651.5 million For the first three quarters (40 weeks) ending October 5, 1997 net earnings amounted to NLG 651.5 million (1996: NLG 416.1 million), an increase of 56.6 %. After deduction of the dividend on preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. , net earnings over the first three quarters totaled NLG 637.4 million. This considerable increase can be attributed for the most part to the consolidation of Stop & Shop. In addition, reported results in guilders were favorably influenced by the higher exchange rate of the dollar (NLG 1.94 vs. NLG 1.68). Earnings per share over the first three quarters rose by NLG 0.25 to NLG 1.23, an increase of 26.1%. The average number of common shares outstanding amounted to 517.4 million. Sales for first three quarters Consolidated sales for the first three quarters totaled NLG 38.0 billion (1996: NLG 26.6 billion), an increase of 42.8%. In the United States, sales rose by 36.1% to USD 10.9 billion (1996: USD 8.0 billion). In The Netherlands, sales increased by 6.2% to NLG 12.0 billion (1996: NLG 11.3 billion). In other European countries, sales rose by 27.0% to NLG 2.3 billion (1996: NLG 1.8 billion). In Latin America, sales totaled NLG 1.7 billion. In Asia Pacific, sales amounted to NLG 723.3 million. Operating results for first three quarters Consolidated operating results for the first three quarters amounted to NLG 1,298.7 million (1996: NLG 825.2 million), an increase of 57.8%. In the United States, operating results totaled USD 425.0 million (1996: USD 242.2 million), up 89.6%. In The Netherlands, operating results amounted to NLG 433.3 million (1996: NLG 390.5 million), an increase of 11.0%. In other countries in Europe, operating results were almost identical to last year, amounting to NLG 109.9 million (1996: NLG 110.5 million). These results were influenced by start-up costs of the Polish and Spanish activities and the flooding in the Czech Republic. Portugal achieved significantly higher operating results. Operating results in Latin America, Brazil, totaled NLG 46.0 million, while Asia Pacific showed operating losses of NLG 63.7 million. Corporate costs totaled NLG 52.2 million (1996: NLG 40.0 million), the higher figure being attributable to the development and start-up of new activities. Net financial expense amounted to NLG 362.7 million (1996: NLG 224.1 million). The increase largely reflects the consolidation of Stop & Shop's interest expenses and, to a lesser degree, the higher dollar exchange rate. The increase in tax rate to 28.3% (1996: 25.9%) reflects a change in the composition of earnings before tax. Outlook for 1997 Based on the course of events in the first three quarters of this year, the Corporate Executive Board of Royal Ahold confirms its previously-expressed expectation that 1997 net earnings will increase considerably. Earnings per share will also be significantly higher in 1997. Corporate Profile Royal Ahold (Koninklijke Ahold nv) is a leading international food retailer with annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. sales of $24 billion, 3,000 stores and over 200,000 employees worldwide. Ahold is the leading food retailer in The Netherlands, one of the top 5 in the US, and has major operations in several countries in Southern and Central Europe Central Europe is the region lying between the variously and vaguely defined areas of Eastern and Western Europe. In addition, Northern, Southern and Southeastern Europe may variously delimit or overlap into Central Europe. , Latin America and Southeast Asia Southeast Asia, region of Asia (1990 est. pop. 442,500,000), c.1,740,000 sq mi (4,506,600 sq km), bounded roughly by the Indian subcontinent on the west, China on the north, and the Pacific Ocean on the east. . Ahold USA is a leader on the East Coast, operating the BI-LO, Giant Food Stores, Tops Markets, and Stop & Shop companies encompassing over 800 stores with annualized sales of $14 billion. In addition to its listing on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. (NYSE: AHO), Ahold's shares are trading on the Amsterdam Stock Exchange
The Amsterdam Stock Exchange is the former name for the stock exchange based in Amsterdam. , on the Zurich Stock Exchange, and on the Brussels Stock Exchange Brussels Stock Exchange (BSE) Stock exchange that handles the majority of securities transactions in Belgium. . Ahold common shares may be accessed on the Reuter Equities 2000 Service under the symbol AHLN.AS and on Quotron under the symbol AHOLN.EU. Additional information is available on Ahold's home page: http://www.ahold.nl. FOR TABULAR tab·u·lar adj. 1. Having a plane surface; flat. 2. Organized as a table or list. 3. Calculated by means of a table. tabular resembling a table. INFORMATION PLEASE CALL TAYLOR RAFFERTY ASSOCIATES AT 212-889-4350 CONTACT: Royal Ahold Hans Gobes, +31-75-659-5665 After office hours office hours, n.pl See business hours. : +31-23-527-0456 - or - Royal Ahold Stuart Brown, +31-75-659-5648 e-mail: stuart.brown@corp.ahold.nl - or - Taylor Rafferty Associates Jeff Zelkowitz, 212-889-4350 |
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