Ahold USA Q2 Sales Gain As It Converts Genuardi's To Giant
Tuesday August 28th, 2012 - 11:09AM
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In the second quarter, Ahold USA achieved 3.4% sales growth versus the year-earlier period, Royal Ahold, the parent company reported. Overall in the quarter, Royal Ahold net sales increased by 11.9% to €7.7 billion, or $9.68 billion, and net income increased to €248 million, or $311.7 million, a gain of €49 million, or $61.6 million, year over year.
“We saw ongoing high levels of promotional activity in both the United States and the Netherlands with retail price inflation coming down, particularly in the United States,” said CEO Dick Boer in commenting on results. “Our businesses in the United States achieved strong margins through stringent cost control.”
In reference to the market conditions in the U.S. and the company’s store purchase from Safeway, Boer added, “We expect market conditions to remain difficult and are cautious about the potential impact of rising food commodity costs, particularly in the United States for the balance of the year. We are confident that we are well on track to deliver on our strategy, and we will continue to invest in growth. We are pleased with the conversion of 15 Genuardi’s stores to Giant Food Stores in the United States.”
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