Friday, January 08, 1999
Royal Ahold, the food retailer, today reported 1998 consolidated sales (53 weeks) of NLG 58.4 billion ($ 26.5 billion), a 15.5% increase over 1997 (52 weeks).
In the United States, sales amounted to USD 16.2 billion, a 13.1% increase. This increase was positively impacted by the acquisition of Giant Food Inc. in October 1998. All operating companies contributed to the sales rise.
In The Netherlands, sales increased by 6.7% to NLG 17.0 billion ($ 7.7 billion). Sales rose at Albert Heijn by 5.7% and at Schuitema by 10.0%. Sales at Ahold Specialty Stores and Ahold Institutional Food Supply also increased.
In Other Europe, sales amounted to NLG 3.8 billion ($ 1.7 billion), a rise of 19.8%. Portugal, the Czech Republic and Poland all contributed to the increase.
In the Latin American region, sales totaled NLG 4.7 billion ($ 2.2 billion), an increase of 80.9%. This considerable increase reflects the full year consolidation of Bompreço-Bahia in Brazil and, as of the fourth quarter of 1998, the supermarket operations of Disco in Argentina and Santa Isabel in Chile.
Sales in Asia Pacific amounted to NLG 906.6 million ($ 411.4 million), in line with last year. However, in local currencies each country reported a significant improvement.
All sales figures are as usual exclusive of sales tax.
Comments Ahold President & CEO Cees van der Hoeven Ahold President & CEO Cees van der Hoeven expressed his satisfaction with the 1998 sales results: "We are delighted with the acquisition of Giant Food in the United States last year which again enables us to boost synergy among our now five US operating companies. Our position in Latin America has been strengthened considerably through our investment in Bompreço-Bahia in Brazil, Disco in Argentina and Santa Isabel in Chile. These operations now rank us among the leading food retailers on the Latin American continent. We are also proud of the performance in The Netherlands, particularly at Albert Heijn and Schuitema, and of our Pingo Doce and Feira Nova operations in Portugal. We remain positive about Asia once the economies there have turned around. Ahold is right on track and we expect strong profitable growth for the future."
Ahold will release its fourth quarter and full year 1998 results on March 9, 1999.