Ahold pares losses for 2003 :: Namibia Internet Gateway cc ::

Articles: Ahold pares losses for 2003

Posted by admin on Monday, April 19, 2004 - 02:36 AM

Ahold, the Dutch retail group, substantially reduced its losses in 2003, despite slumping sales and the shake-up that followed its accounting scandal last year.
The company on Monday said it had pared its losses to €1m ($1.2m) in 2003, compared to €1.2bn in 2002. "We called 2003 in many ways a lost year, but the results published today also show that we are on the right track with the Road to Recovery programme," said Anders Moberg, chief executive. Ahold reported operating income of €718m, an increase of €479 over 2002, despite sluggish consumer spending and currency effects, which saw sales for the year fall 10 per cent. In another sign of recovery, Ahold said that US Foodservice, the subsidiary at the centre of last year's €1.2 bn scandal, had returned to profit. The company said its net debt fell to €7.5bn compared to over €12bn a year ago, the result of balance sheet restructuring that is part of Ahold's three-year "road to recovery" plan. Looking ahead to 2004, Ahold said the planned divestment of its Spanish business could reduce European sales. But the company said it expected those losses to be offset in part by improving conditions in the US food service market. Ahold is expected to complete a series of divestments of its operations in Latin America, Spain and the US in 2004 as part of its restructuing plans. Ahold shares fell 1.4 per cent to €6.87 in early morning trading in Amsterdam.

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