Mar 4, 2010
Amsterdam, the Netherlands – Ahold today published its summary report for the fourth quarter and full year 2009. CEO John Rishton said: “In the fourth quarter, we delivered a solid performance in a challenging environment. Sales and margins continued to be impacted by deflation, trading down and increased promotions. We successfully managed, however, the balance between sales and margins, and we improved market share and increased volumes in the Netherlands and the United States.
“For the full year 2009, our underlying retail operating margin was 5.1%, the same as 2008 and consistent with our mid-term target of 5%.
“The economic environment remains challenging, but we have a proven ability to adapt and respond quickly and effectively to changes. We will continue to reduce costs so that we can invest in our offering to improve value for our customers. We will manage the balance between sales, margin and market share and use the strength of our balance sheet to seize opportunities as they arise.
“Reflecting the confidence in our strategy, our ability to generate cash and our strong balance sheet we announced a € 500 million share buyback program to be completed over the next 12 months and propose a 28% increase in our dividend to € 0.23 per common share.
“We reiterate our mid-term targets to achieve a net sales growth of 5% (mainly from identical sales growth) and a retail operating margin of 5%, while maintaining an investment grade credit rating”.
At current exchange rates, Ahold expects its net interest expense for 2010 to be in the range of € 260 million to € 280 million and its capital expenditure to be around € 1.1 billion.
Cautionary notice
This summary report includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those included in such statements. These forward-looking statements include, but are not limited to, statements as to Ahold’s response to changes in the economic environment and opportunities in the market, Ahold’s instruments to improve value for customers, the balance between sales, margins and market share, Ahold’s considerations to initiate the share buyback program, the completion of the share buyback program, the payment of dividend to shareholders in 2010, Ahold’s targets on sales growth, retail operating margin and credit rating, Ahold’s plans to publish its 2009 Annual Report (including financial statements) and the expected contents thereof, the expected net interest expense and capital expenditures in 2010, Ahold’s contingent liability related to BI-LO and Bruno´s leases, estimates in relation to pension liabilities in the U.S., the (finalization of the) settlement with the Department of Justice in the U.S and Ahold’s liability in relation thereto, the course and outcome of the ICA tax claims proceedings, the start of the operation of the Ukrop’s stores and the vesting of shares granted to Ahold employees and CEB. These forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by the forward-looking statements. Many of these risks and uncertainties relate to factors that are beyond Ahold’s ability to control or estimate precisely, such as the effect of general economic or political conditions, fluctuations in exchange rates or interest rates, increases or changes in competition, Ahold’s ability to implement and complete successfully its plans and strategies, the benefits from and resources generated by Ahold’s plans and strategies being less than or different from those anticipated, changes in Ahold’s liquidity needs, the actions of competitors and third parties and other factors discussed in Ahold’s public filings. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this summary report. Neither Koninklijke Ahold N.V. nor Ahold Finance U.S.A., LLC assumes any obligation to update any public information or forward-looking statements (referred to) in this report to reflect subsequent events or circumstances, except as may be required by securities laws. Outside the Netherlands, Koninklijke Ahold N.V., being its registered name, presents itself under the name of “Royal Ahold” or simply “Ahold”.
