ZAANDAM, the NETHERLANDS - Ahold has released its Q4 and Full Year 2015 trading statement today, with the report highlighting significant sales increases both globally and in the United States. One major contributing factor to those increases? A&P’s exit from the New York Metro area.
For the whole of the United States market, gas excluded sales increased 4.1% over Q4 2014 for a total of €6.06 billion ($6.56 billion). In the statement, Ahold cites sales were positively affected by “competitor store closures in the New York Metro market” and the conversion of 25 former A&P stores. Overall in the United States, an increased share of the market was a recipe for success for the financial health of the company.
Globally, the story was similar. Ahold’s consolidated net sales made a 21.4% climb over Q4 2014 for a total of €9.8 billion ($10.6 billion). This extra capital will undoubtedly provide Ahold with a boost right before the company’s impending merger with Delhaize.
According to Bloomberg, adding Delhaize to its mix will give Ahold an extra 4% in market share for U.S. grocery spending, potentially even furthering its sales increases in the country.
Following the announcement of the sales increases, Ahold's stock was up nearly 6%.
Other highlights from the trading statement include:
- Netherlands identical sales increased 3.2%, reflecting strong holiday performance
- Adjusted group online sales increased 29.1%
- Expected total underlying operating margin higher than previous quarter and last year
- FY 2015 free cash flow expected to be above last year
For more on Ahold continued growth in the U.S. and its soon to be implemented merger with Delhaize, keep reading AndNowUKnow.
