Ahold Posts Drop In Q2 Profit
Royal Ahold NV (OTC: AHONY) reported a 29% drop in its second-quarter profit.
Ahold's quarterly net profit declined to EUR147 million ($196.1 million), from a year-ago profit of EUR206 million. Its basic earnings per share declined 15% to $0.17 from $0.20.
Underlying operating income tumbled 15.5% to EUR288 million.
Its sales dropped 4.1% to EUR7.42 billion versus EUR7.74 billion. Sales dropped 1.1% at constant current rates. Sales in the US fell 6.2%.
Net sales from Ahold USA segment dropped 6.2% to €4,408 million, while sales from The Netherlands segment gained 0.1% to €2,706 million. Sales from Czech Republic segment tumbled 8.9% to €306 million.
Ahold's online sales climbed 18.6% to €273 million in the quarter.
Its operating margins narrowed to 3.9% compared to 4.4%.
CEO Dick Boer said, "In a challenging competitive environment, we remain focused on executing our Reshaping Retail strategy and continue to make investments in our customer and value offering, making our stores a better place to shop.”
Ahold shares declined 1.57% to close at $17.45 yesterday.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.