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Retail

Ahold Shares Jump As Fourth-Quarter Sales Beat Estimates

By Publications Checkout
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Ahold Shares Jump As Fourth-Quarter Sales Beat Estimates

Royal Ahold NV shares jumped the most in a month after the Dutch retailer’s quarterly sales beat estimates on the back of growth in the US and the Netherlands.

The stock advanced as much as 3.8 per cent to €19.06 in Amsterdam, the steepest intraday gain since December 15.

Fourth-quarter sales rose 21 per cent to €9.79 billion ($10.7 billion), compared with the €9.40 billion average estimate compiled by Bloomberg. The performance provides a boost for the Zaandam, Netherlands-based company as it seeks to complete the takeover of Belgium’s Delhaize Group, a deal it announced in June.

The Delhaize deal will give the company more than 4 per cent of grocery spending in the US, where Ahold’s chains include Stop & Shop. Cheaper prices and a better produce selection in the US are helping attract customers in the face of increased competition from retailers including Wal-Mart Stores Inc. Ahold in July agreed to acquire 25 A&P stores in New York for $146 million.

“It’s purely autonomous growth, though adding the A&P stores did also help,” Alan Vandenberghe, an analyst at KBC Securities, said by phone, adding that the figures support the business case for the acquisition of Delhaize.

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Online retail, which represents about 5 per cent of revenue, rose 38 per cent to €484 million.

Ahold is scheduled to report fourth-quarter earnings on March 3.

News by Bloomberg, edited by ESM. To subscribe to ESM: The European Supermarket Magazine, click here.

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