Ahold maintains position despite losses
€1,208m loss for troubled retail giant
October 2 2003
Ahold has maintained its position as the world’s number three retailer, despite a year of crisis for the Dutch retail giant that has seen its report a €1,208m loss for 2002.
With the retailer having delayed publication of its accounts twice, Ahold pesident & CEO Anders Moberg said: “The publication of these results is a major milestone that draws a line under recent events and enables us to move forward.”
Net sales for 2002 of €62,683m were enough to keep Ahold as the world’s number three retailer, behind Wal-Mart and Carrefour of France.
Along with a net loss of €1,208m for 2002, Ahold has revised its 2000 and 2001 net profits downwards, mainly in the light of the €2.7bn accounting irregularities found in the US Foodservice business. The discovery of these plunged Ahold into crisis at the start of this year, and sparked offcial investigations by both the US and Dutch authorities.
Sales growth in the core Dutch Albert Heijn chain was 4.5 per cent, with store expansions in Central Europe and Spain boosting sales in those territories. Ahold has put many of its non-core operation, including its South American retail chains, up for sale. Wal-Mart is aming those interested in buying the South American operation.
Moberg said: “The underlying performance of our operating companies in the aggregate was good in a year of increased competition and a weak economy. We have some very solid operations and strong brands.
“However, in many ways, it’s been a lost year, difficult and negative. With 2002 now behind us, it’s time to move forward and rebuild value for our customers and our shareholders.”
