Ahold, the operator of supermarkets in the United States and the Netherlands, presented on Wednesday its quarterly results which beat analysts' expectations, the underlying operating profit of the company increasing by 15 % due to higher sales and improved margins.
The Ahold basic operating profit in the first quarter amounted to 449 million euro ($ 499 million). Analysts polled by Reuters had forecast the index at the level of 430 million euro. The previous year, there has been received 390 million euro.
Sales increased by 3.5 % at constant exchange rates, to 11.8 billion euro, while core profit margin increased by 3.8 % compared with 3.5 % for the same period of 2015.
"We continue to significantly advance in the implementation of the planned merger with Delhaize, which we expect to complete in mid-2016", - said the head of Ahold, Dick Boer.
In the United States, which accounts for about two-thirds of Ahold business, the sales at company stores increased by 0.8 %; excluding the impact of fuel prices, total sales increased by 3.0 % to 7.3 billion euro at constant exchange rate. This was greatly facilitated by the opening of 25 stores A&P in the vicinity of New York. Profit margin in the US has improved to 4.0 % from 3.7 %.
Comparable sales in the Netherlands rose 2.9 % and net sales increased by 4.9 % to 3.9 billion euro.
Ahold reiterated that for the year it expects to reach the underlying operating margin "in accordance" with the levels of 2015 - 3.8 %, excluding the costs associated with the Delhaize merger.
Ahold buys Belgian Delhaize for around 9.8 billion euro ($ 10.9 billion). The merger, which will result in the creation of one of the largest food retailers in the US East Coast, was announced last year. The deal still must be approved by US regulators.