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U.S. division Stop & Shop/Giant Landover was a solid performer in Ahold’s interim report for the second quarter and half year 2009, which showed net sales of 6.4 billion euros, an 11.5 percent increase. Operating income was 295 million euros, up 25.5 percent, while retail operating income was 306 million euros, a retail operating margin of 4.8 percent, vs. last year’s 4.3 percent. For the half year 2009, net sales were 15.1 billion euros, a rise of 13.6 percent. Operating income was 691 million euros, up 21.0 percent, and retail operating income came to 720 million euros, a retail operating margin of 4.8 percent, compared to 4.6 percent last year.
CEO John Rishton said: “We had a strong second quarter, with operating income up 26 percent despite the challenging economic environment,” said John Rishton, CEO of the Amsterdam-based retail conglomerate. Stop & Shop/Giant-Landover operating income was up 60 percent to $200 million and Albert Heijn operating income was up 9 percent to 150 euros million from last year. We remain well positioned in an increasingly competitive environment to deliver our strategy for profitable growth and manage the balance between sales and margins.”
For the second quarter, net sales at Stop & Shop/Giant-Landover were $ 4.1 billion, an increase of 2.8 percent. Identical sales rose 1.7 percent at Stop & Shop (3.4 percent excluding gasoline) and 3.7 percent at Giant-Landover (3.5 percent excluding gas). Operating income was $ 200 million, or 4.9 percent of net sales, an increase of $ 75 million. Operating income included impairments of $ 7 million, mainly in connection with the closing of several in-store Starbucks locations.
For the first half, Stop & Shop/Giant-Landover’s net sales were $9.4 billion, up 3.2 percent. Identical sales grew 2.5 percent at Stop & Shop (4.2 percent excluding gas) and 3.7 percent at Giant-Landover (3.5 percent excluding gas). Operating income was $442 million, or 4.7% of net sales, a rise of $115 million, and included a nonrecurring rent charge of $15 million and impairments of $7 million. In the first half of last year, restructuring, severance and related charges came to $43 million, impairments were $10 million and gains on the sale of assets were $29 million.
Meanwhile, second-quarter Giant-Carlisle net sales dipped 0.4 percent to $ 1.1 billion. Identical sales fell 1.8 percent (increased 2.0 percent excluding gas, and operating income was $ 48 million, or 4.3 percent of net sales, a $ 3million decline from last year. Operating income in the quarter included restructuring, severance and related charges of $8 million.
For the first half at Giant-Carlisle, net sales were $ 2.6 billion, a rise of 1.7 percent. Identical sales declined 0.2 percent (increased 3.3 percent excluding gas). Operating income was $ 119 million, or 4.6, of net sales, a decrease of $4 million compared with the year-ago period.