AMSTERDAM—Dutch Food retailer Royal Ahold NV said
Wednesday that first-quarter net profit jumped, recovering from a
large settlement the company had to pay a year earlier and on
revenue gains driven by the stronger U.S. dollar.
The company didn't comment on its preliminary merger talks with
Belgian food retailer Delhaize, which could create the
third-largest grocer in the U.S. behind Wal-Mart Stores Inc. and
Kroger Co.
"We are encouraged by the positive momentum in our sales trend,"
said Chief Executive Dick Boer, "despite the adverse timing of
Easter." He said the roll-out of more stores in the U.S. increased
the company's volume market share.
First-quarter net profit was €213 million ($232
million), compared with €50 million a year earlier. Early
last year, Ahold set aside a large provision to settle a
class-action lawsuit related to improper accounting practices at
its former subsidiary, U.S. Foodservice.
Underlying operating income was 0.5% lower at €390
million, compared with €392 million a year earlier.
Revenue was up 15%, driven by a stronger U.S. dollar. Excluding
the large currency impact, opening of new stores and volatile
gasoline sales, identical sales remained subdued in the U.S. at
0.1%. Ahold earns two-thirds of its revenue in the U.S., through
its supermarket chains Stop & Shop and Giant. In its home
market in the Netherlands, identical sales growth was 2.5%.
Write to Archie Van Riemsdijk at archie.vanriemsdijk@wsj.com
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