La prima trimestrale 2006...
UPDATE 2-Ahold Q1 profit up 76 pct, ops review continues
Wed Jun 21, 2006 05:09 AM ET
(Adds statement from conference call, margins US retail)
By Harro ten Wolde
AMSTERDAM, June 21 (Reuters) - Dutch retailer Ahold NV (AHLN.AS: Quote, Profile, Research) said on Wednesday its first-quarter net profit rose 76 percent on higher sales, improved operating income and reduced financial costs.
The first-quarter net profit of 236 million euros ($297 million) topped the mean of analysts' expectations at 197 million euros, according a Reuters poll of 13 analysts.
Review of underperforming assets has started and will be completed in the fall, the company said.
"The competitive environment continued to be challenging for Stop & Shop / Giant-Landover and conditions remained difficult in Central Europe and at Tops, especially in North East Ohio," it said in a statement.
The world's fourth-biggest food retail and food service group in sales, had already reported in May that its total sales in the first quarter rose 8.6 percent to 14.1 billion euros.
First-quarter earnings before interest and taxes rose to 455 million euros, which included gains on the sale of property, plant and equipment of 66 million euros and impairments of non-current assets of 17 million euros.
Analysts polled by Reuters were expecting an operating profit of 395 million euros.
Shares in Ahold were down 0.6 percent at 6.54 euros at 0830 GMT, valuing the retailer at 15 times 2006 earnings, compared with a price-earnings ratio of 16 times for Carrefour (CARR.PA: Quote, Profile, Research) and 15 times for Tesco (TSCO.L: Quote, Profile, Research) .
OUTLOOK MAINTAINED
"We basically keep our guidance for our retail activities," Chief Executive Officer Anders Moberg told journalists in a conference call.
In March, Ahold cut its 2006 retail operating margin target range to 4 percent to 4.5 percent from 5 percent and lowered its forecast net retail sales growth to 2.5 percent to 3 percent also from 5 percent due to competition and cost pressures.
Ahold's foodservice business is targeting a 2006 operating margin of 1.7 percent.
Ahold owns the Netherlands' biggest supermarket chain, but generates more than 70 percent of its turnover in the United States.
At its main U.S. retail chains, Stop & Shop/Giant Landover and Tops/Giant Carlisle, first-quarter earnings in dollars were down on a-year-on basis. Operational margins at Stop & Shop/Giant were 5.7 percent down from 6.1 percent, while mean analysts' expectations were also 5.7 percent.
Tops/Giant Carlisle's first-quarter margin was flat at 2.7 percent. Analysts were expecting operational margin of 2.4 percent. Fourth-quarter margins were 4.9 percent at Stop & Shop/Giant and 0.4 percent at Tops/Giant.
"Basically, it's Albert Heijn and Giant Carlisle beating expectations, but this is not very important. Stop & Shop and Central Europe are still underperforming and U.S. foodservice is beating expectations, but with question marks over the quality of that," said a London dealer.
(Additional reporting by Louise Heavens in London)
© Reuters 2006. All Rights Reserved.