hr: Money

Photo Credit: aloxe
Royal Ahold NV, which is based in Amsterdam, realized an unexpected profit during the first quarter as it raised operating margin target for the full year following a Dutch chain’s sale, according to owner of Albert Heijn.

The company realized an 8.9 percent in net income that translates to 258 million euros or approximately US$402 million, which further translates to 22 cents per share, from the previous year’s 237 million euros, or 15 cents, the company said, as it exceeds the 224 million-euro median expert estimates.

The company during the past has spent as much as $19 billion on takeovers. However, this activity came to an abrupt stop when Ahold, in 2003, got involved in an accounting scandal. Currently the company has sold assets in order lift company earnings, as it puts more effort on retailing.

The profit realized by the company soared as this giant grocery chain enticed its customers its prepared meals, helping counteract declining US earnings, where the company busied itself with its price-cutting spree in order to compete with another entity called Supervalu Inc.’s Shaw’s chain despite the turbulent economic conditions.

Petercam analyst Fernand de Boer, in Amsterdam, who gave Ahold a “buy” rating on company stock said “[i]t’s positive that Ahold raised its margin target even though the situation in the U.S. is getting tougher.”