Ahold announces share buy-back

Thursday 04 March 2010

Supermarket group Ahold on Thursday announced a €500m share buy-back and a 28% increase in dividend to €0.23 per share.

The buy-back and dividend rise are contained in a written summary of the company's fourth quarter and full year results for 2009.

In the fourth quarter Ahold booked a net profit of €267m, a drop of 8% on the same period in 2008 but 10% higher than expected by analysists.

Full year results were down 17% at €894m, with an underlying retail operating margin of 5.1%, the same as 2008 and consistent with Ahold's mid-term 5% target.

In a written statement, CEO John Rishton said the buy-back and dividend rise 'reflect the confidence in our strategy, our ability to generate cash and our strong balance sheet.'

Ahold operates the Albert Heijn supermarket chain and earns over 50% of sales in the US.

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