AMSTERDAM (Thomson Financial) - Royal Ahold NV reported first-quarter sales
at the upper end of analysts expectations and a stronger-than-expected rise in
sales at constant exchange rates, with performance helped by favourable market
conditions in Europe.
In a trading statement the company said sales fell 1.3 percent to 7.538
billion euros, despite a 13.5 percent rise to 2.683 billion euros at Albert
Heijn where same-store sales in local currency were up 11.3 percent.
At constant exchange rates, group sales were up rose 6.8 percent, Ahold
said, while the average U.S. dollar exchange rate was 12.8 percent lower
year-on-year.
Analysts had forecast first quarter sales in the range of 7.255 billion to
7.600 billion euros, with same-store sales at constant currencies seen up
between 3.8 and 5.9 percent.
"In Europe, market conditions remained favorable. In the United States, the
Value Improvement Program at Stop & Shop and Giant-Landover is on track. Price
investments related to the roll-out of the program continue to impact margins
and sales, with improvements expected later in the year," the company said in a
statement.
"We remain vigilant about the economic environment and rising food prices,"
Ahold said.
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