Supermarket operator Koninklijke Ahold N.V. (AHO, AHODF.PK,AHONY.PK) reported Thursday a 25% decline in first-quarter profit, hurt by higher taxes and a provision for lease guarantees.
The Amsterdam, Netherlands-based company's net income for the first quarter declined 24.9% to EUR 196 million from EUR 261 million in the corresponding quarter last year.
Net income attributable to common shareholders was EUR 196 million or EUR 0.16 per share, compared to net income of EUR 258 million or EUR 0.22 per share in the prior year.
Income from continuing operations for the quarter rose 14.5% to EUR 253 million from EUR 221 million a year earlier. Earnings per share from continuing operations for the quarter were EUR 0.21, compared to EUR 0.19 in the prior year.
Results for the quarter were impacted by higher taxes and a EUR 66 million net provision for lease guarantees for BI-LO and Bruno's, the company noted.
Net sales for the quarter grew 15% to EUR 8.65 billion from EUR 7.51 billion in the comparable period last year. According to the company, identical sales growth at Stop & Shop and Giant-Landover were the strongest in many years, which helped market share growth and margin. At constant exchange rates, net sales increased by 6.2%.
Quarterly operating income was EUR 396 million, up 17.9% from EUR 336 million in the previous year quarter. Retail operating income was EUR 414 million, and posted a retail operating margin of 4.8%, compared to 4.9% last year.
Further, the company said its activities are to some extent subject to seasonal influences and retail business generally experiences an increase in net sales in the fourth quarter of each year, resulting mainly from holiday sales.
AHONY.PK closed Wednesday's regular trading at $12.2, while AHODF.PK last traded at $11.95.
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