Dutch grocer Ahold's sales dipped 0.9 per cent in the second quarter because of the weak dollar and increased price competitiveness in some of its markets.
Its performance was largely in line with expectations, according to many analysts, who have been impressed with its progress following two years of transition after the accounting scandal at its US Foodservice division.
In the past 18 months, Ahold has divested six businesses as it stripped back its operations following the scandal. Its move to acquire Czech grocery chain Julius Meinl, revealed last week, is its first acquisition since the probe and suggests renewed confidence at the business.
In a note, Dresdner Kleinwort Wasserstein analyst James Grzinic said: 'Stop & Shop momentum has improved and both Albert Heijn and Carlisle remain very strong.' However, he continued: 'Central Europe operations, while holding on to transaction numbers, have clearly suffered from a very competitive industry environment, with discounters forcing significant deflation in the mix.'
Ahold's total net sales were EUR10.4 billion (£7.19 billion) for the 12 weeks to April 25. Net sales, excluding the impact of currency, rose 0.6 per cent for the period.
Ahold had a mixed performance in the US, with like-for-likes at the Stop & Shop supermarket business up 0.8 per cent and average basket spend also rising.
However, like-for-likes at its Giant-Landover business fell 4.1 per cent. Online shopping service Peapod 'continued to show strong net sales growth'. Ahold's US Foodservice business's net sales decreased by 2.7 per cent.
In its domestic market, Albert Heijn's net sales rose 4.9 per cent to EUR1.5 billion (£1.04 billion), while net sales in central Europe were up 2 per cent to EUR412 billion (£285.1 billion).
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