Dutch retail group Ahold has this morning reiterated its mid-term targets to achieve a net sales growth of 5% this year, mainly from identical sales growth, and a retail operating margin of 5%.

Speaking about 2009, Ahold CEO John Rishton said: “For the full year, our underlying retail operating margin was 5.1%, the same as 2008 and consistent with our mid-term target of 5%." Operating income for 2009 was EUR1.30 billion (USD1.80 billion), up 7.9%, despite higher impairments and lower gains on sale of assets, the company disclosed.

Operating margin reached 4.9% at Stop & Shop/Giant-Landover and 4.4% for Giant-Carlisle in the USA, 6.6% for Albert Heijn in the Netherlands, and -4.5% at Albert/Hypernova in the Czech Republic and Slovakia. Ahold announced in January that consolidated 2009 net sales reached EUR27.9 billion (USD38.8 billion), up 8.9%, or 3.9% at constant exchange rates on an adjusted basis.

“The economic environment remains challenging, but we have a proven ability to adapt and respond quickly and effectively to changes. We will continue to reduce costs so that we can invest in our offering to improve value for our customers. We will manage the balance between sales, margin and market share and use the strength of our balance sheet to seize opportunities as they arise," Rishton said, announcing an EUR500 million (USD730 million) share buyback programme.

For the fourth quarter 2009, net sales were EUR6.8 billion (USD9.5 billion), up 3.4%. At constant exchange rates, net sales grew 11%, positively impacted by an additional week. Net sales increased by 2.1% at constant exchange rates on an adjusted basis.

Operating income was EUR341 million (USD474.16 million), down 7.6%. Despite volume growth in all markets, the margins were impacted by deflation, trading down by customers and increased promotional activity.