BRUSSELS (dpa-AFX) - Koninklijke Ahold Delhaize N.V. (ADRND.PK, AHODF.PK), which was formed with the merger of Belgian food retailer Delhaize Group and Dutch supermarket chain Koninklijke Ahold NV, announced Thursday the separate second-quarter results of both companies on a standalone basis.
For the second quarter, Ahold's net income increased 7.2 percent to 209 million euros or 0.25 euro per share from last year's 195 million euros or 0.23 euro per share.
Underlying operating income of 355 million euros increased 7.3% from the prior year. Net sales went up 3 percent year-over-year to 8.95 billion euros. Sales grew 3.6% at constant exchange rates, and 4.4% excluding gas at constant exchange rates.
Delhaize Group's second-quarter net profit increased 11.7 percent to 118 million euros from 106 million euros last year. Underlying operating profit of 247 million euros grew 10.4 percent.
Revenues increased 2.8 percent on a reported basis and 4.3 percent at identical exchange rates to 6.29 billion euros. Comparable store sales growth was 2.9% in the U.S., 2.1% in Belgium and 8.7% in Southeastern Europe
Ahold Delhaize merger's effective date of July 24 fell after both companies' first-half end. Ahold Delhaize will publish its first combined results as of the third quarter of 2016 on November 17. Pro-forma historical quarterly segment information will be published on October 6.
As announced earlier, 86 stores will be divested in the United States, as part of the approval of the U.S. Federal Trade Commission. In addition, Ahold Delhaize expects to divest another 10 stores in the Richmond area. In Belgium, Ahold Delhaize will divest 13 stores, as part of the approval by the Belgian Competition Authority.
Looking ahead, the company said it is confident to meet synergy target of 500 million euros on an annual run-rate basis by mid-2019. In 2016, synergies are expected to positively impact operating income by 30 million euros in the second half of 2016.
The company plans to hold a Capital Markets Day on December 7 in London.
Copyright RTT News/dpa-AFX