Royal Ahold NV, the Dutch owner of Stop & Shop and Giant supermarkets in the U.S., reported a fall in fourth-quarter earnings, blaming a mix of factors including an inability to pass rising commodity costs on to customers, The Associated Press reports.
Net profit was euro154 million ($218 million), down from euro267 million in the same period a year ago. Sales rose 2.6 percent to euro6.98 billion.
The company said customers especially in the U.S. were hunting good deals, forcing Ahold into “intense promotional activity.”
Ahold cited weaker margins, restructuring costs in the U.S., and a tax charge of euro70 million at its Scandinavian operations.
It said sales would have been up 5.5 percent if not for the weaker dollar and extra week in 2009.
Ahold will boost its dividend.
