Ahold Q3 Profit Climbs As Sales Rise; Sees Full-Year Results In Line With View

(RTTNews) - Dutch supermarket chain Koninklijke Ahold NV (AHONY.PK, AHODF.PK), which has agreed to merge with Delhaize Group, Wednesday said its third-quarter profit increased from last year amid a growth in sales with good performances in the U.S. and the Netherlands. Looking ahead, the company said it is on track to deliver a full-year performance in line with expectations.

The company's attributable net income rose to 189 million euros from 178 million euros. Earnings per share grew to 0.23 euro from 0.20 euro.

Operating income improved to 284 million euros from 274 million euros. Underlying operating income was 319 million euros while it totaled 285 million euros last year.

Net sales increased to 8.44 billion euros from last year's 7.472 billion euros. While group sales growth was 13 percent, the increase was 1.7 percent at constant exchange rates.

Net sales climbed 16.6 percent in Ahold USA to 5.248 billion euros, but slid 1.4 percent in constant currency due to lower gas sales.

According to the company, underlying sales trends in the U.S. continued to improve, with identical sales growth of 1.8 percent excluding gas and adjusted for last year's sales uplift as a result of a business disruption at one of the Stop & Shop New England division's main competitors.

Ahold said its business in the Netherlands continued its positive sales trend. Net sales were 2.796 billion euros, up 7.4 percent from last year or an increase of 4 percent on an identical sales basis.

Higher volumes at Albert Heijn were driven by an increased number of transactions, which led to a higher market share than last year. Volume growth was particularly strong for the Fresh assortment.

CEO Dick Boer said, "Looking ahead, we are on track to deliver a full year performance in line with expectations and to complete the proposed merger with Delhaize by mid-2016. This combination will create a stronger international food retailer for the benefit of our customers, associates and shareholders."

The stock fell 0.7 percent on Tuesday in Amsterdam to close at 18.92 euros.