Ahold 2004 second quarter sales

7/29/2004, 8:02 AM (Source: GlobeNewswire)
- Consolidated second quarter 2004 net sales amounted to EUR 12.3 billion, a decline of 4.8% compared to the same period last year - Net sales significantly impacted by lower currency exchange rates and divestments; second quarter 2004 net sales growth excluding currency impact and impact of divestments was approximately 3.1% - Consolidated first half year 2004 net sales amounted to EUR 27.7 billion, a decline of 8.5% compared to the same period last year - First half year 2004 net sales growth excluding currency impact and impact of divestments was approximately 2.1%

Zaandam, The Netherlands, July 29, 2004 - Ahold today announced
consolidated net sales (excluding VAT) for the second quarter of the
year (12 weeks: April 19, 2004 - July 11, 2004) of EUR 12.3 billion,
a decline of 4.8% compared to the same period last year (2003: EUR
13.0 billion). Net sales were significantly impacted by lower
currency exchange rates, in particular that of the U.S. dollar. Net
sales excluding currency impact decreased by 1.4%. Additionally, net
sales were impacted by divestments. Net sales growth excluding
currency impact and impact of divestments was approximately 3.1% in
the second quarter.

Consolidated net sales in the first half year of 2004 amounted to EUR
27.7 billion, a decline of 8.5% compared to the same period last year
(2003: EUR 30.3 billion). Net sales excluding currency impact
declined by 1.4%. Net sales growth excluding currency impact and
impact of divestments was approximately 2.1% in the first half year.

The net sales numbers are preliminary and unaudited.

USA - retail
In the United States, net sales in the second quarter of 2004
increased in U.S. dollars by 0.5% to USD 6.3 billion (2003: USD 6.2
billion). Net sales growth excluding the impact of the divestment of
Golden Gallon in 2003 was approximately 2.0%. Identical sales growth
was 0.3% and comparable sales growth was 0.9%, in U.S. dollars.
Identical sales in the second quarter were positively impacted by the
Easter calendar effect by approximately 1.0%. Food price inflation
remained stable in the second quarter of 2004 compared to the first
quarter of 2004. At Stop & Shop and Giant Landover, increased
competitive promotional activity and selling square footage, as well
as the ongoing integration initiatives, have had an impact on sales
during the second quarter of 2004.

In the first half year of 2004, net sales amounted to USD 14.4
billion, a decline of 0.5% compared to the same period last year
(2003: USD 14.5 billion). Net sales excluding the impact of the
divestment of Golden Gallon in 2003 showed a growth of approximately
1.0%. Identical sales decline was 0.8%. Comparable sales decline was
0.2%.

Europe - retail
In Europe, net sales in the second quarter of 2004 amounted to EUR
3.1 billion (2003: EUR 3.1 billion). Net sales growth excluding
currency impact amounted to 0.8%. Identical sales growth at Albert
Heijn was 1.4%; the increase in transactions was partly offset by a
lower average basket size, which was partly caused by modest food
price deflation. Net sales growth in Central Europe from store
openings was largely offset by lower currency exchange rates. Net
sales in Spain decreased as a consequence of a lower store count,
declining tourism in the Canary Islands and increased competition.

In the first half year of 2004, net sales amounted to EUR 6.8 billion
(2003: EUR 6.8 billion). Net sales growth excluding currency impact
amounted to 0.1%. Identical sales growth at Albert Heijn was 0.4%.

Foodservice
Net sales in the second quarter of 2004 at U.S. Foodservice increased
in U.S. dollars by 7.5% to USD 4.4 billion (2003: USD 4.1 billion).
The increase was primarily attributable to higher pricing and
improved volumes.

In the first half year of 2004, net sales in U.S. dollars increased
by 5.9% to USD 10.0 billion (2003: USD 9.4 billion).

South America
In South America, net sales in the second quarter of 2004 amounted to
EUR 215 million (2003: EUR 609 million), down 64.7% from the same
period last year, mainly due to the divestment of Bompreço in Brazil
in the first quarter of 2004 and Santa Isabel in the second half of
2003.

Net sales in the first half year of 2004 decreased by 53.7% to EUR
551 million (2003: EUR 1.2 billion).

Unconsolidated joint ventures
The net sales of unconsolidated joint ventures decreased by 2.5% to
EUR 2.7 billion in the second quarter of 2004 (2003: EUR 2.8
billion). Net sales at ICA were impacted primarily by the
transportation strike in Norway. Net sales at Jerónimo Martins Retail
remained flat compared to the same period last year. In Central
America, net sales were significantly impacted by lower currency
exchange rates. Net sales growth excluding currency impact in Central
America was 12.1% in the second quarter.

In the first half year of 2004, net sales of unconsolidated joint
ventures amounted to EUR 5.3 billion (2003: EUR 5.4 billion).

Segment Reporting Changes
During the second quarter of 2004, Ahold changed the organizational
and managerial responsibilities of the companies reported in the
Other Business Segment (including the separately managed Real Estate
companies and Ahold Coffee Company). Beginning in the second quarter
of 2004, the managerial responsibilities of these companies have been
transferred to the management of the relevant retail companies.
The reported net sales figures for the first half year of 2003
therefore have been adjusted as follows: a total of EUR 27 million of
net sales from the Other Business Segment have been included in Other
Europe Retail (EUR 26 million) and Other USA Retail (EUR 1 million).
The reported net sales figures for the first quarter of 2004 have
been adjusted as follows: a total of EUR 16 million net sales from
the Other Business Segment have been included in Other Europe Retail
(EUR 15 million) and Other USA Retail (EUR 1 million).

Definitions
* Identical sales compare sales from exactly the same stores.
* Comparable sales are identical sales plus sales from
replacement stores.
* Currency impact: the impact of using different exchange
rates to translate the financial figures of our subsidiaries to
Euros. The financial figures of the previous year are restated
using the actual exchange rates in order to eliminate this currency
impact.
* Impact of divestments: the impact on net sales of divested
operations. Net sales of the divested operations are excluded from
prior year net sales.

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