Ahold announces strategy for profitable growth

11/6/2006, 12:46 PM (Source: GlobeNewswire)


- Divest U.S. Foodservice
- Appoint European Chief Operating Officer and U.S. Chief
Operating Officer
- Reduce operating costs by EUR 500 million by end 2009
- Cut Group Support Office costs by 50% by end 2008
- Divest Tops and retail operations in Poland and Slovakia
- Sell holding in Jerónimo Martins Retail
- Implement brand improvement and value repositioning
- Reaffirm targets as retail net sales growth of 5% and retail
operating margin of 5%
- Return approximately EUR 2 billion to shareholders and reduce
debt by approximately EUR 2 billion, following divestments

Amsterdam, the Netherlands, November 6, 2006 - Ahold today announced
plans and financial targets resulting from its Retail Review, which
began in May of this year. The plans announced are designed to
accelerate identical sales growth, improve profit returns and
strengthen the company's foundation for future expansion, creating
additional value for its shareholders.

The new plans focus on Ahold's core retail businesses in the United
States and Europe, the continued roll-out of value repositioning
programs, and the reduction of operating costs by EUR 500 million by
end 2009. The company has also announced the appointment of new Chief
Operating Officers in the United States and Europe to lead its
restructured continental organizations.

"Since the crisis in 2003, we have completed a comprehensive
revitalization program." said Ahold President and CEO Anders Moberg.
"We have substantially reduced debt, divested non-core assets,
transformed business and financial controls, and resolved multiple
investigations and litigation issues. At the same time, we have
implemented a successful repositioning program at Albert Heijn and
ICA and recovered significant value in U.S. Foodservice."

"It is now time for us to focus our efforts on strengthening our
retail competitive position, particularly in the United States. We
will apply our consumer insight much more actively to improve our
product, service and price offering in order to increase customer

"At the heart of our new continental structure is our commitment to
remaining a strong global team." Moberg continued. "Our new structure
will enable us to execute our strategy more effectively as a combined
organization. We will be able to better drive operational synergies
and leverage our retail capabilities and talent across all of our
businesses. Our people have always been and will continue to be our
greatest asset."

Ahold Press Office: +31 (0)20 509 5343

Open the link below for the full press release:

View document
Copyright GlobeNewswire, Inc. 2016. All rights reserved.
You can register yourself on the website to receive press releases directly via e-mail to your own e-mail account.