Weak Dollar Lowers Ahold's Q4 Net Sales
ZAANDAM, Netherlands -- Ahold yesterday reported consolidated net sales (excluding value-added tax) of EUR 12.3 billion for the fourth quarter of 2004, a decrease of 3.1 percent vs. the year-ago period.
Net sales were significantly affected by lower currency exchange rates, especially that of the U.S. dollar. Excluding the currency impact, net sales went up 3.2 percent. Additionally, net sales were affected by divestments, so that net sales growth excluding the impact of currency and divestments was 7.9 percent.
Consolidated net sales in 2004 came to 52.0 billion euros, a decline of 7.3 percent compared with 2003. Net sales excluding currency the impact went down 0.7 percent in 2004. Net sales growth excluding currency impact and the impact of divestments was 3.1 percent.
Consolidated net sales in the fourth quarter of 2004 and the full-year 2004 were positively affected by the inclusion of the additional week period compared with the comparable periods of 2003. Ahold posted comparisons of the 13-week fourth quarter of 2004 to a 13-week period consisting of the 12-week fourth quarter of 2003 plus the first week of 2004 (referred to as the adjusted 2003 fourth quarter), and also reported comparisons of the 53 weeks of 2004 with a 53-week period consisting of the 52 weeks of 2003, plus the first week of 2004 (referred to as adjusted 2003).
Net sales at Ahold's U.S. retail operations in the fourth quarter of 2004 rose 10.2 percent to 6.9 billion dollars. Net sales in the fourth quarter of 2004 would have increased by 1.7 percent, compared with the adjusted 2003 fourth quarter. Identical sales in U.S. dollars would have declined by 1.2 percent, and comparable sales in U.S. dollars would have decreased by 0.7 percent, in each case comparing the fourth quarter of 2004 to the adjusted 2003 fourth quarter. Food price inflation dipped slightly in the fourth quarter of 2004 as opposed to the third quarter of 2004.
Stop & Shop/Giant-Landover 2004 fourth-quarter net sales went up 10.8 percent to 4.1 billion dollars. Net sales in the fourth quarter of 2004 would have increased by 2.2 percent compared with the adjusted 2003 fourth quarter. Although continued competitive pressure led to a decline in identical sales, the fourth quarter of 2004 improved vs. the third quarter of 2004. This was mainly due to strong holiday net sales. During the fourth quarter the Stop & Shop/Giant Landover resolved most of the supply chain integration and transitional difficulties that had affected net sales. Peapod continued to report strong net sales growth.
At Giant-Carlisle/Tops, fourth-quarter 2004 net sales rose 15.4 percent to 1.7 billion dollars. Net sales in the 2004 fourth quarter would have increased by 6.5 percent compared with the adjusted 2003 fourth quarter. The positive net sales growth in the 2004 fourth quarter reflected higher net sales per customer, driven by the impact of promotional activities, particularly during the holidays.
At Bi-Lo/Bruno's, fourth-quarter 2004 net sales went up 1.5 percent to 1.2 billion dollars. Net sales in the 2004 fourth quarter would have decreased by 6.3 percent vs. the adjusted 2003 fourth quarter. This decrease was mainly the result of the increase in competitive square meters and the effect of store closings earlier in the year. On Dec. 23, Ahold announced a definitive agreement to sell Bi-Lo/Bruno's, a transaction that is expected to close in the first quarter of 2005.
Full-year 2004 net sales at Ahold's U.S. retail operations amounted to 27.4 billion dollars, a rise of 1.6 percent compared with last year. Net sales in U.S. dollars in 2004 would have decreased by 0.4 percent compared with adjusted 2003. Net sales growth in U.S. dollars, excluding the impact of the divestment of Golden Gallon in 2003, came to approximately 2.8 percent. Identical sales in U.S. dollars for 2004 decreased by 1.1 percent as opposed to adjusted 2003. Comparable sales in U.S. dollars for 2004 decreased 0.5 percent compared with adjusted 2003.
In the fourth quarter of 2004 U.S. Foodservice net sales increased by 7.8 percent to 4.5 billion dollars. Net sales in the 2004 fourth quarter would have increased by 0.6 percent vs. the adjusted 2003 fourth quarter. Furthermore, net sales in the fourth quarter of 2004 were negatively affected by about 3 percent, due to Ahold's national account customer rationalization program. Food inflation in the fourth quarter of 2004 was lower than in the previous quarter.
Net sales in 2004 at U.S. Foodservice increased in U.S. dollars by 5.6 percent to 18.8 billion dollars. This rise was primarily attributable to the effect of the 53rd week in 2004 and food price inflation. Net sales in U.S. dollars in 2004 would have increased by 3.9 percent compared with adjusted 2003.
In Europe, net sales in the fourth quarter of 2004 were 3.3 billion euros, with net sales growth excluding currency impact 1.2 percent compared with the fourth quarter of last year. Fourth-quarter net sales were negatively affected by the sale of Ahold's Spanish retail activities, which was completed in early december. Net sales growth for Europe retail excluding the impact from currency and divestments was 7.7 percent. Net sales in the 2004 fourth quarter would have decreased by 4.2 percent compared with the adjusted 2003 fourth quarter.
South American net sales in the fourth quarter of 2004 were 122 million euros, a plunge of 76.4 percent vs. the year-ago period, same period last year, primarily because of the divestment of Bompreço in Brazil in the first quarter of 2004; Santa Isabel in Chile, Paraguay, and Peru in the second half of 2003 and the deconsolidation of Disco as of Nov. 1, 2004. Net sales in 2004 sank 59.8 percent to 893 million euros, mostly due to those divestments.
Net sales were significantly affected by lower currency exchange rates, especially that of the U.S. dollar. Excluding the currency impact, net sales went up 3.2 percent. Additionally, net sales were affected by divestments, so that net sales growth excluding the impact of currency and divestments was 7.9 percent.
Consolidated net sales in 2004 came to 52.0 billion euros, a decline of 7.3 percent compared with 2003. Net sales excluding currency the impact went down 0.7 percent in 2004. Net sales growth excluding currency impact and the impact of divestments was 3.1 percent.
Consolidated net sales in the fourth quarter of 2004 and the full-year 2004 were positively affected by the inclusion of the additional week period compared with the comparable periods of 2003. Ahold posted comparisons of the 13-week fourth quarter of 2004 to a 13-week period consisting of the 12-week fourth quarter of 2003 plus the first week of 2004 (referred to as the adjusted 2003 fourth quarter), and also reported comparisons of the 53 weeks of 2004 with a 53-week period consisting of the 52 weeks of 2003, plus the first week of 2004 (referred to as adjusted 2003).
Net sales at Ahold's U.S. retail operations in the fourth quarter of 2004 rose 10.2 percent to 6.9 billion dollars. Net sales in the fourth quarter of 2004 would have increased by 1.7 percent, compared with the adjusted 2003 fourth quarter. Identical sales in U.S. dollars would have declined by 1.2 percent, and comparable sales in U.S. dollars would have decreased by 0.7 percent, in each case comparing the fourth quarter of 2004 to the adjusted 2003 fourth quarter. Food price inflation dipped slightly in the fourth quarter of 2004 as opposed to the third quarter of 2004.
Stop & Shop/Giant-Landover 2004 fourth-quarter net sales went up 10.8 percent to 4.1 billion dollars. Net sales in the fourth quarter of 2004 would have increased by 2.2 percent compared with the adjusted 2003 fourth quarter. Although continued competitive pressure led to a decline in identical sales, the fourth quarter of 2004 improved vs. the third quarter of 2004. This was mainly due to strong holiday net sales. During the fourth quarter the Stop & Shop/Giant Landover resolved most of the supply chain integration and transitional difficulties that had affected net sales. Peapod continued to report strong net sales growth.
At Giant-Carlisle/Tops, fourth-quarter 2004 net sales rose 15.4 percent to 1.7 billion dollars. Net sales in the 2004 fourth quarter would have increased by 6.5 percent compared with the adjusted 2003 fourth quarter. The positive net sales growth in the 2004 fourth quarter reflected higher net sales per customer, driven by the impact of promotional activities, particularly during the holidays.
At Bi-Lo/Bruno's, fourth-quarter 2004 net sales went up 1.5 percent to 1.2 billion dollars. Net sales in the 2004 fourth quarter would have decreased by 6.3 percent vs. the adjusted 2003 fourth quarter. This decrease was mainly the result of the increase in competitive square meters and the effect of store closings earlier in the year. On Dec. 23, Ahold announced a definitive agreement to sell Bi-Lo/Bruno's, a transaction that is expected to close in the first quarter of 2005.
Full-year 2004 net sales at Ahold's U.S. retail operations amounted to 27.4 billion dollars, a rise of 1.6 percent compared with last year. Net sales in U.S. dollars in 2004 would have decreased by 0.4 percent compared with adjusted 2003. Net sales growth in U.S. dollars, excluding the impact of the divestment of Golden Gallon in 2003, came to approximately 2.8 percent. Identical sales in U.S. dollars for 2004 decreased by 1.1 percent as opposed to adjusted 2003. Comparable sales in U.S. dollars for 2004 decreased 0.5 percent compared with adjusted 2003.
In the fourth quarter of 2004 U.S. Foodservice net sales increased by 7.8 percent to 4.5 billion dollars. Net sales in the 2004 fourth quarter would have increased by 0.6 percent vs. the adjusted 2003 fourth quarter. Furthermore, net sales in the fourth quarter of 2004 were negatively affected by about 3 percent, due to Ahold's national account customer rationalization program. Food inflation in the fourth quarter of 2004 was lower than in the previous quarter.
Net sales in 2004 at U.S. Foodservice increased in U.S. dollars by 5.6 percent to 18.8 billion dollars. This rise was primarily attributable to the effect of the 53rd week in 2004 and food price inflation. Net sales in U.S. dollars in 2004 would have increased by 3.9 percent compared with adjusted 2003.
In Europe, net sales in the fourth quarter of 2004 were 3.3 billion euros, with net sales growth excluding currency impact 1.2 percent compared with the fourth quarter of last year. Fourth-quarter net sales were negatively affected by the sale of Ahold's Spanish retail activities, which was completed in early december. Net sales growth for Europe retail excluding the impact from currency and divestments was 7.7 percent. Net sales in the 2004 fourth quarter would have decreased by 4.2 percent compared with the adjusted 2003 fourth quarter.
South American net sales in the fourth quarter of 2004 were 122 million euros, a plunge of 76.4 percent vs. the year-ago period, same period last year, primarily because of the divestment of Bompreço in Brazil in the first quarter of 2004; Santa Isabel in Chile, Paraguay, and Peru in the second half of 2003 and the deconsolidation of Disco as of Nov. 1, 2004. Net sales in 2004 sank 59.8 percent to 893 million euros, mostly due to those divestments.