Ahold has released its second quarter (Q1) and first half (H1) 2014 results for the 12 week period ending 13 July 2014.

Key Highlights
•    Ahold completed the acquisition of Spar stores in the Czech Republic.
•    Rolled-out am improvement of the bakery department and in-store presentation in the Netherlands; expanded the organic and natural food merchandise assortment.
•    Expanded in Belgium and opened 23 stores.
•    Reorganized European operations to focus on Albert Heijn, resulting in EUR 29 million restructuring charge.
•    Ahold rolled out an improvement customer proposition program in the USA that focuses on improved fresh offering, enhanced customer experience and targeted price reductions.
•    Opened a new warehouse in New Jersey.

Sales Performance
Ahold Group
Q2 2014 sales decreased 4.1% year-over-year (y-o-y) to EUR 7,420 million, down 1.1% at constant exchange rates.
•    Online sales identical sales increased 16.2% to EUR 273 million, up 18.2% at constant rates.
•    Store sales decreased 4.7% y-o-y to EUR 7,147 million, down 1.7% at constant exchange rates.
H1 2014 sales decreased 3.2% y-o-y to EUR 17,241 million, down 0.3% at constant exchange rates.
•    Online sales identical sales increased 22.1% to EUR 635 million, up 24.3% at constant rates.
•    Store sales decreased 4% y-o-y to EUR 17,241 million, down 1.1% at constant exchange rates.

Ahold USA
Q2 2014 sales decreased 6.2% y-o-y to EUR 4,408 million (USD 6,029 million), down 1.7% at constant exchange rates.
Q2 2014 comparable sales (COMPS) excluding gasoline were decreased 1.7% y-o-y, while identical sales (ID sales) excluding gasoline decreased 1.8%.
Results in the USA include negative impact of the post-Easter week included in the quarter.
H1 2014 sales decreased 5.2% y-o-y to EUR 10,267 million (USD 14,069 million), down 0.9% at constant exchange rates.
H1 2014 COMPS excluding gasoline decreased 0.6%, while ID sales excluding gasoline decreased 0.6%.

Ahold Netherlands
The reported values for Netherlands include Belgium operations sales.
Q2 2014 sales increased 0.1% y-o-y to EUR 2,706 million
•    COMPS excluding VAT and tobacco sales decreased 1.5%.
•    ID sales excluding VAT and tobacco sales decreased 1.7%
•    Bol.com sales in Belgium increased 110%.
H1 2014 sales increased 0.7% y-o-y to EUR 6,253 million
•    COMPS excluding VAT and tobacco sales decreased 1.4%.
•    ID sales excluding VAT and tobacco sales decreased 1.5%
Sales in the Netherlands were negatively impacted by VAT change on tobacco that took effect in the middle of 2013 and inclusion of the post-Easter week in the quarter reporting.

Czech Republic
Q2 2014 sales decreased 8.9% y-o-y to EUR 306 million (CZK 8,395 million), down 3.3% at constant exchange rates.
•    COMPS excluding gasoline decreased 2.9%.
•    ID sales excluding gasoline decreased 2.8%
H1 2014 sales decreased 7% y-o-y to EUR 721 million (CZK 19,781 million), down 0.8% at constant exchange rates.
•    COMPS excluding gasoline decreased 0.8%.
•    ID sales excluding gasoline decreased 1%

Profits and Margins
Ahold Group
Q2 2014 operating income decreased 21.2% y-o-y to EUR 260 million. Underlying operating margin stood at 3.9%.
•    Net income decreased 28.6% y-o-y to EUR 147 million, down 26.7% at constant exchange rates.
•    The decrease in net income is mainly a result of discontinued operations.
H1 2014 operating income decreased 5.5% y-o-y to EUR 640 million. Underlying operating margin stood at 3.9%.
•    Net income decreased 90.9% y-o-y to EUR 197 million, down 90.8% at constant exchange rates.
Ahold USA
Q2 2014 operating income decreased 15.8% y-o-y to EUR 160 million; in USD operating income decreased 11.4% to USD 218 million.
•    Underlying operating margin stood at 3.7%.
H1 2014 operating income increased 5.8% y-o-y to EUR 384 million; in USD operating income decreased 10.1% to USD 525 million.
•    Underlying operating margin stood at 3.8%.

Ahold Netherlands
Q2 2014 operating income decreased 17.4% y-o-y to EUR 119 million; underlying operating margin stood at 5%.
H1 2014 operating income decreased 11.2% y-o-y to EUR 294  million; underlying operating margin stood at 5%.

Czech Republic
Q2 2014 operating flat  y-o-y to EUR 6 million; in CZK operating income increased 11.1% to CZK 170 million.
•    Underlying operating margin stood at 2%.
H1 2014 operating income increased 15.4% y-o-y to EUR 15 million; in CZK operating income increased 15.4 to CZK 408 million.
•    Underlying operating margin stood at 2.1%.

Stores
At the end of the period the retailer operated 3,121 stores out of which 766 in the USA 2,072 in the Netherlands and 283 in the Czech Republic.
On August 1st the retailer completed the acquisition of the SPAR stores in the Czech Republic, reaching 330 stores in the country.

Guidance
Ahold expects to save EUR 300 million throughput it’s the improvement program ‘Simplicity’.
The retailer expects improved results as it invests in its customer proposition and product range development.
Improved quality of its assortment in the USA will be active in 320 stores by the end of the year.