Ahead of targets
Repositioning and restructuring meant Ahold could embark on acquisitions in central Europe and return to a period of investment in improving its store base while continuing to streamline its U.S. store portfolio.
The divestment program neared completion in 2005, gross proceeds of EUR 2.7 - ahead of target. That strengthened the balance sheet and supported a business focus to improve the performance of Ahold’s core assets.
The aim remained to operate businesses where Ahold had obtained - or could obtain - a position of market leadership. Despite a sustained difficult trading environment, results showed significant improvement according to President and CEO Anders Moberg.
High cash balances resulting from the divestment of assets meant Ahold was able to terminate the back-up credit facility it had required in 2003.
During 2005, Ahold acquired 56 stores in the Czech Republic from Julius Meinl a.s.
In central Europe, Ahold sold three shopping centers and its larger Polish hypermarkets in order to concentrate on supermarkets and the smaller hypermarket format. It completed the sale of Tops convenience stores, BI-LO and Bruno’s in the United States, Deli XL in Benelux and further South American interests.
After the difficulties of 2003, the year ended optimistic about the fortunes of its U.S. Foodservice business. It had put in place stronger, more transparent, corporate governance and more robust organizational structures.