Ahold achieved strong results, led by solid store performance and a substantial increase in online sales
- 21.4% increase in Q4 Group sales to €9.8 billion (up 11.8% at constant exchange rates)
- 4.3% increase in Q4 sales excluding gas (at constant exchange rates and adjusted for an additional week)
- Online sales growth continued to accelerate, with Q4 adjusted net consumer sales up 29.1% at constant rates
- Q4 underlying operating income up 39.4% to €421 million; underlying operating margin at 4.3%
- Strong Q4 free cash flow of €401 million, resulting in €1,184 million full year free cash flow
- Proposed dividend of €0.52, up 8.3% compared to last year
- Announced merger with Delhaize on track to close in mid-2016; EGM to be held on March 14
Zaandam, the Netherlands - Ahold today announced strong financial results for the fourth quarter and full year 2015, reflecting good performances across its key markets and multiple formats. This included net annual sales of €38 billion, driven by excellent store operations, especially during the holiday season, and a strong increase in consumer online sales.
Ahold CEO Dick Boer said: "With a sharp focus on supporting our great local brands and investing to serve the rapidly changing interests and needs of our customers, we have made very good progress and achieved strong operating and financial results for the fourth quarter and the year. We challenged ourselves to innovate faster, to bring our customers fresher products in new and different ways, and to deliver greater value. This progress was supported by reinvesting the substantial savings achieved through our company-wide Simplicity program. We are pleased with the response from our customers and appreciate the continued great work of our associates, which led to robust sales performance, market share gains and an increase in Group operating income for the year.
"In the Netherlands, sales momentum remains strong, with a 3.2% increase in identical sales. This reflects our successful omni-channel strategy, a strong holiday season and positive sales momentum at Albert Heijn. Albert Heijn's customers are benefiting from our broader and innovative product range and the expansion of healthy choices in our Fresh departments, resulting in increased market share for Q4 and the full year.
"In the United States, we grew sales excluding gas by 4.1%, adjusted for an additional week. We continue to make good progress with our investments in quality and price, highlighted by growth in identical sales and market share gains, primarily in the New York Metro market where we further strengthened our position with the successful conversion of 25 former A&P stores.
"Our online performance was also strong with a nearly 30% increase in consumer sales in the fourth quarter. Bol.com maintained its position as the number one online retail destination in the Netherlands and had a particularly strong December. In addition, Peapod and ah.nl remain leading online grocers in their respective markets.
"Finally, our proposed merger with Delhaize continues to progress on schedule. The combination of Ahold and Delhaize will create an even better retail leader for customers and associates and will enable us to further build on the position of our respected and popular local brands in the communities we serve."
Full Q4 / FY 2014 Report and Preseentation attached as PDF to this message.
Please follow this link to watch a video with Dick Boer, Ahold CEO.
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Source: Ahold via Globenewswire
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