Supermarket operator Ahold 3Q profit up 22 percent

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AMSTERDAM -Royal Ahold NV, the operator of the Stop & Shop and Giant chains in the U.S., reported a 22 increase in profit for the third quarter, mostly due to a tax windfall.

Net profit was euro238 million ($354 million), up from euro195 million in the same period a year ago, as the company was helped by a euro36 million discount on its U.S. taxes due to losses carried over from previous years. The company said operating income was up 1.5 percent.

Sales rose 4.3 percent to euro6.04 billion, while margins slid slightly from 4.9 percent to 4.8 percent.

Sales "volumes grew in all markets, with good sales performance in the U.S.," said Chief Executive John Rishton in a statement.

"We continue to adapt to the challenging environment, balancing sales and margins while seeking to grow market share."

Ahold's strategy in the U.S., where it generates two-thirds of its sales, has been to profile itself as offering "value," meaning relatively cheap prices for good — but not deluxe — quality groceries.

Operating profit rose about 8.4 percent at the company's U.S. stores and 6.6 percent at its stores in the Netherlands, where it operates the dominant Albert Heijn chain. However, the company's stores in the Czech republic operated at a euro21 million loss.

2009-11-18 02:23:30