Koninklijke Ahold Delhaize N.v. · EURONEXT:AD
Koninklijke Ahold Delhaize — Koninklijke Ahold — Q1 2014 Earnings Presentation
13 slides from Koninklijke Ahold Delhaize's earnings presentation, May 28, 2014
Slide 1: First quarter 2014 results
First quarter 2014 results May 28, 2014
Slide 2: Group highlights Q1 2014
Group highlights Q1 2014 Business and strategic highlights • Decision to roll out program in the United States to improve customer proposition • Stabilized market share trend in the Netherlands in a slowing market • Acquisition of Czech SPAR stores announced, sale of Slovakian business completed • O
Slide 3: Group performance
Group performance (in millions of euros) Quarter 1 Change at 2014 2013 Change constant rates Sales 9,821 10,074 (2.5%) 0.3% Underlying operating income 392 418 (6.2%) (4.1%) Underlying operating margin 4.0% 4.1% Operating income 380 347 9.5% 11.2% Net income from continuing operations 235 211 11.4%
Slide 4: Performance by segment
Performance by segment (in millions of euros) Ahold USA The Netherlands Czech Republic Q1 2014 Change* Q1 2014 Change Q1 2014 Change* Sales 5,859 (0.3%) 3,547 1.2% 415 1.2% Underlying operating income 227 (4.9%) 178 (4.3%) 9 37.6% Underlying operating margin 3.9% (0.2%) 5.0% (0.3%) 2.2% 0.6% Identic
Slide 5: Capital structure
Capital structure Continue to move towards a more efficient balance sheet • Net debt of €280 million, compared to net cash of Common shares outstanding (in millions) €942 million at end of Q4 2013 owing to: • Completion of €1.0 billion capital repayment and 1,145 -23% reverse stock split in the quar
Slide 6: Business highlights: Ahold USA (1/2)
Business highlights: Ahold USA (1/2) Decision to roll out program to improve customer proposition Piloted across all our divisions 2nd half 2013, resulting in encouraging volume uplifts Program focuses on improving our Fresh offering, enhancing customer experience and targeted price reductions Activ
Slide 7: Business highlights: Ahold USA (2/2)
Business highlights: Ahold USA (2/2) Decision to roll out program to improve customer proposition Improving our Fresh Enhancing customer Targeted price offering experience reductions • 100 SKU additions in Fresh • Improved in-store merchandising, • Over 1,000 item price reductions • Changes to Produ
Slide 8: Business highlights: the Netherlands (1/2)
Business highlights: the Netherlands (1/2) Albert Heijn market share trend stabilized in slowing market Further slowdown of market growth in the Netherlands Low inflation and pressure on volumes in the market Market share performance stabilized and was in line with the performance of the previous qu
Slide 9: Business highlights: The Netherlands (2/2)
Business highlights: The Netherlands (2/2) Further strengthening commercial position and focusing on future growth Assortment improvements Invest in quality and value Continue to invest in future and additions growth • Promotional campaigns • New product lines in coffee, focused on quality and value
Slide 10: Business highlights: Czech Republic
Business highlights: Czech Republic Focus on growing our Czech business Strategic acquisition of SPAR stores announced: will make Albert #1 food retailing brand* Sale of Slovakian business completed Our new compact hyper format achieved higher identical sales growth than our other existing formats.
Slide 11: Online offering – extending our leadership
Online offering – extending our leadership Online sales €362 million, up 20% on an identical basis • Opened new facilities, adding $65 • Increased geographical • 53,000 sellers* on Plaza platform; million in capacity coverage to 75% of households now 16% of consumer sales • Opened 47 new pick-up poi
Slide 12: Outlook
Outlook • Our outlook for the next quarter reflects similar trading conditions to the first quarter as well as investments in our customer proposition and future growth. • We expect the underlying operating margin in the Netherlands to be broadly in line with current levels. • We anticipate margins
Slide 13: Cautionary notice
Cautionary notice • This presentation includes forward-looking statements, which do not refer to historical facts but refer to expectations based on management's current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events