Ahold Announces its Q2 2015 Financial Report
ZAANDAM, NETHERLANDS - Ahold has released its Q2 2015 financial report, the first since the official confirmation of its impending merge with Ahold. In the report, sales records indicated that the company saw a significant boost in sales, which CEO Dick Boer believes may be due to increased produce offerings.
“We launched many new initiatives for our customers especially in the area of healthy living, as we’ve improved our fresh and produce offerings across our businesses in the U.S., the Netherlands, and the Czech republic,” Boer said in the company’s Q2 2015 video presentation. “We are rolling out a new produce department format and during the quarter it was rolled out to another 92 stores, bringing the total to 167 stores.”
In total, Ahold rose sales by 17.1% to reach over $9.7 billion. The company grew in sales, operating income, and net income, and delivered strong free cash flow. As far as the company’s U.S. operations, sales grew by 22.5% to hit over $6 billion. Also, just last month, Ahold USA announced that Stop & Shop New York Metro has entered into a conditional agreement to acquire 25 stores from A&P in the Greater New York region.
As far as the much-anticipated merger with Delhaize, Boer had little to add that has not been previously reported, but did comment on the company’s excitement to get things moving.
“I understand that you probably have some questions related to the merger with Delhaize, today I can only say that we are on track and our pleased with the progress we are making,” Boer said during a call to investors. “As previously communicated, we expect to have an AGM in the first half of 2016 and transaction to be completed mid-2016. And we are look forward to an exciting future together.”
Other highlights from Ahold’s Q2 2015 financial report include:
- Sales excluding gas up 4.8% at constant exchange rates
- Underlying operating margin of 3.8%, down 0.1 percentage points
- Strong free cash flow of €367 million, up €297 million
- Sales in the Netherlands up 6.8%
- Sales in the United States excluding gas up 2.1%
- Consumer online sales up 22.8% (at constant exchange rates)
Keep checking in with AndNowUKnow as we continue to follow Ahold and its future merger plans.
