Jeff Carr - Solid results in a challenging environment
Chief Financial Officer
Hello, my name is Jeff Carr, CFO at Ahold, and I'd like to spend a few moments to talk to you about our results in 2011.
For the full year net sales were €30.3 billion – up 2.5 percent compared to 2010, and at constant currency that's the equivalent of a 5.5 percent sales increase.
Compared to 2010
During the year we continued to work hard to deliver improvements in operating efficiency and I'm pleased that we achieved our cost reduction targets a year ahead of time.
Cost reduction targets [graphic of checkmark]
Total operating profit for the year was €1.3 billion, and we achieved an operating profit margin of 4.4 percent.
4.4% operating profit margin
Net income – and that's after interest, tax, and income from our joint venture partners – was just over €1 billion, up 20 percent from last year.
Up 20% from last year
- International experience
- Strong online businesses
- Support our local brands
During the year we achieved identical sales growth in all of our operations.
In the Netherlands, for example, Albert Heijn, Etos, Gall & Gall, and our online business albert.nl, all grew sales despite tough competition in a competitive marketplace.
[Albert Heijn, Etos, Gall & Gall and albert.nl logos]
Additionally, Ahold continues to generate strong cash flows, and for 2011 our free cash flow was €965 million.
€965 million cash flow
This strong cash flow means we will continue to invest in our growth strategy, reduce our debt and improve our returns to shareholders.
In 2012, we believe that the economic environment will remain challenging. But we will stay focused on simplifying our business so we can continue to improve efficiency and provide our customers with even better value.
- Simplifying our business
- Improving efficiency
- Providing even better value