Alexa

Ahold 2Q profit soars to euro2.23 billion on divestments; will delist in U.S.

Ahold 2Q profit soars to euro2.23 billion on divestments; will delist in U.S.

Royal Ahold NV, the operator of grocery chains in the Netherlands and U.S., said Thursday second-quarter net profit soared due to asset sales and that the company planned to delist from U.S. markets.
Net profit was euro2.23 billion (US$3.04 billion), up from euro219 million, as the company booked a gain of euro2 billion (US$2.73) from selling operations, primarily its bulk food distribution arm, U.S. Foodservice, to private equity investors in July, the company said in a statement. Sales rose 2 percent to euro6.6 billion (US$9 billion).
Operating profit fell 3.6 percent to euro291 million, which the company blamed on the weak dollar.
John Rishton, the company's Chief Financial Officer and top executive since the resignation of Chief Executive Anders Moberg in July, said a restructuring at its Stop & Shop business was going well, "with customer perception of price reductions continuing to improve."
Separately, the company announced a euro1 billion (US$1.36 billion) share buyback program, adding to a euro3 billion (US$4.09) extraordinary dividend issued earlier this month.
Shares rose 5.1 percent to euro9.70 (US$13.23) in Amsterdam.
The decision to delist its depository receipts from the New York Stock Exchange and de-register from supervision of the U.S. Securities and Exchange Commission is "part of Ahold's strategy to improve cost-effectiveness by reducing complexity," the company said in a statement, adding that "the benefits of maintaining a U.S. registration and a NYSE listing have declined over time."


Updated : 2020-11-30 04:39 GMT+08:00