Dutch retailer Koninklijke Ahold NV (AHONY.PK,AHODF.PK) Thursday reported increased sales for the fourth quarter, with a strong performance in the U.S.
Quarterly sales grew 7.9 percent to 8.06 billion euros from 7.47 billion euros, and were up 2.6 percent at constant exchange rates.
For 2014, consolidated net sales edged up 0.5 percent to 32.8 billion euros, and grew 0.8 percent in constant currency.
In the U.S., net sales increased 8.4 percent to 4.789 billion euros, and were down 0.5 percent in constant currency reflecting lower gas sales due to significant price deflation. Identical sales excluding gasoline grew 0.3 percent, compared to a negative 2 percent last year.
Market share for the fourth quarter and for the full year was down slightly, and the firm expects underlying operating margin for the fourth quarter to be broadly in line with the previous quarter.
In the Netherlands, net sales climbed 4.5 percent to 2.839 billion euros in the fourth quarter, driven by identical sales growth of 2.2 percent and by further extension of Albert Heijn's network in the Netherlands and Belgium. Sales reflected a strong holiday performance from Albert Heijn stores and online businesses Albert Heijn Online and bol.com.
Partially due to increased promotional activity, Ahold expects the underlying operating margin in the Netherlands for the fourth quarter to be slightly lower than the previous quarter.
In the Czech Republic, the integration of the SPAR stores is well underway, and led to net sales growth of 32.6 percent in constant currency at 433 million euros. The underlying operating margin will be impacted by the consolidation of the SPAR stores, as previously mentioned.
Ahold expects its free cash flow for the year to be higher than guided previously.
In a separate statement, Ahold said the company and Executive Committee member Sander van der Laan have mutually agreed that Sander would step down as of February 1.
Wouter Kolk, currently Executive Vice President Specialty Stores and New Markets at Albert Heijn, is the intended successor of Sander van der Laan as CEO of Albert Heijn, and as Executive Committee member at Ahold.
The stock is little changed in Amsterdam at 15.43 euros.
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