Ahold did not benefit from WK: revenue and profit fell – Volkskrant

Ahold did not benefit from WK: revenue and profit fell – Volkskrant

Edited by: Staff – 08/21/14, 09:24 – Source: Reuters

© anp . Ahold

Supermarket Company Ahold in the second quarter is not able to benefit from the World Cup. The parent company of Albert Heijn had unchanged burden of stiff competition and the economy among consumers, who along with unfavorable exchange rates, earnings and revenue showed decline.

Ahold today reported sales of 7.4 billion euros in the second quarter. That was 4 percent lower than a year earlier, or 1 percent are left. As adverse foreign exchange translation Underlying operating profit increased by 15.5 percent to 288 million euros. Net income was 147 million euros, almost 29 percent lower than in the second quarter of 2013.

In the Netherlands, revenue at stores open more than a year by almost 2 percent. According to Ahold gave customers a visit to Albert Heijn previous quarter less than before. The World Cup brought no change in it. The market share of Albert Heijn in the Netherlands remained stable, the underlying profit margin was 5 percent, however, half a percentage point lower than a year earlier.

The low consumer confidence remain the conditions on the Dutch market difficult, said CEO Dick Farmer in a statement. In time, the efforts of Albert Heijn need to attract more customers to bear fruit, but for now it is too early to announce the return. Growing sales according to the CEO

USA
In the United States, the largest market in terms of revenue Ahold, the comparable sales were 0.5 percent ahead. However, total sales fell partly due to the strong euro, 6 percent to 4.4 billion euros. In the United States market share was lost, especially in New England in the chain Giant Landover.

The competition in the United States is growing, and gave Boer. Other chains open new stores at a rapid pace, while the overall market is not growing. Ahold is trying to win the fight by making. Its American stores more attractive and cheaper dollars of consumers In that area “encouraging results” are achieved. According to the company

Reorganization
Ahold seeks to combat. Difficult market conditions with cuts In that context, this quarter was a reorganization at headquarters and the commercial department was streamlined. The company held to the expectation that the program almost 300 million in cost savings this year.