Dutch retailer Ahold has reported on a positive opening quarter of 2016, with growth in group sales and underlying operating income, while also confirming that its merger with Belgian retailer Delhaize is close to completion.
The company said that a 4.3 per cent increase in group sales to €11.8bn reflected a good performance across all of its markets.
Sales growth was driven by 'solid store operations and a continued strong increase in online sales, improved profitability and a strong free cash flow', the retailer noted, while there was also a 15.1 per cent increase in group underlying operating income.
'We continue to deliver on our strategic objectives, with a good operational and financial performance in the first quarter,' said chief executive Dick Boer. 'Our focus remains on serving our customers and delivering on our simplicity programme, in order to invest in our great local brands to ensure that we provide even more value and innovation.
'In the Netherlands, we were pleased to continue to deliver strong identical sales growth, as our customers respond positively to the ongoing improvements we are making to our stores, assortment and service,' he continued. 'Our online businesses, bol.com and ah.nl, delivered excellent growth of over 30 per cent in net consumer sales during the quarter.
'Finally, we continue to make good progress on our proposed merger with Delhaize, which we expect to complete in mid-2016,' Boer added. 'Working together towards this common goal reaffirms our view that the merger will create a better and more innovative retailer, capable of delivering enhanced value for our customers, associates and shareholders.'
