Ahold deepens loss to record CZK 1.741bn in ČR last year

Prague, Dec 22 (CTK) – Ahold Czech Republic, which with around 280 supermarkets and hypermarkets Albert ranks among the largest retail chains in the Czech Republic, posted a record loss of Kc1.741bn last year, according to information CTK gained from the report of the company’s general meeting.

Last year’s loss was caused mainly by massive investments through which Ahold wants to firm its position on the Czech market, Ahold Czech Republic spokesman Lukas Hora told CTK.

“The investments included the renaming of Hypernova to Albert, the reconstruction of interiors of our supermarkets and hypermarkets, intensive price campaigns as well as a reduction of the selling area of the biggest hypermarkets and the closure of 23 unprofitable stores,” Hora said.

Ahold CR, which ranks among the most loss-making retail chains in the country, sank into a loss for the fourth time in a row last year.

In 2008, it deepened loss from 2007’s Kc433.8m to Kc463.6m. Share capital amounted to Kc6.2bn at end-2008.

Last year, Ahold decreased share capital by Kc4.8bn, which corresponds to the previously accumulated losses.

At its general meeting in November this year, Ahold decided to raise share capital by Kc896m.

Rival Tesco Stores CR saw its sales increase slightly to Kc39.92bn in the 2009/2010 economic year ending in February this year from Kc39.658bn posted in the previous year. Tesco’s profit fell to Kc60m last year from Kc138m.

Despite the economic crisis and lower household spending, Billa’s sales grew by Kc2.7bn on the year to Kc20.1bn last year. Billa’s profit rose from 20008’s Kc115.6m to Kc57.6m last year.

Ahold ranked fourth in the chart of the largest Czech retail chains last year, preceded by Schwarz CR (Kaufland, Lidl), Rewe CR (Billa, Penny Market) and Tesco Stores.

source: www.praguemonitor.com