Ahold, the Netherlands-based retailer with operations in the US, Central Europe and Scandinavia, has announced an improved set of results for both the fourth quarter and full year of 2011.
Consolidated net sales hit €7.3bn during the final quarter of the year, an improvement of 4.5 per cent when compared with the same period of 2010, or growth of 4.3 per cent at constant exchange rates.
For the full 12-month period, Ahold's net sales came in at €30.3bn, up 2.5 per cent on 2010 or 5.5 per cent at constant exchange rates.
'We are pleased to have delivered another solid performance over the quarter, growing sales and market share in the US and the Netherlands,' the group noted. 'We continue to be well positioned in chellenging market conditions with customers remaining cautious in their spending.'
Commenting on the results, Planet Retail's associate analysist Denise Klug described the performance as 'solid', explaining that a focus on small-scale acquisitions in markets in the US and logical, risk-averse market entries in Europe had proved a winning strategy.
'Its plans to enter Germany may sound very courageous on the face of it, given the highly publicised failures of retail heavyweights like Walmart and Delhaize Group,' Klug noted. 'However, for Ahold, this is just a step across the Dutch border into North Rhine-Westphalia, with no need for setting up costly logistics and additional overheads. In times of crisis, this prudent strategy is the best way to go. Nevertheless, Ahold is still sitting on a pile of cash that is big enough for a larger acquisition should it find the ideal target.'
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