Dutch supermarkets group Ahold, the world's third-biggest retailer, has posted profits above market expectations for the first three months of the year.

The firm earned 328m euros (�211m; $308m) in the quarter, up 4% year on year, and said that it was on course to enjoy 15% profit growth in 2002.

Although not stunning by Ahold's historical standards, the figure came in ahead of analysts' expectations, sending the firm's shares up by 5% in early trading.

Although nominally Dutch, Ahold now earns the bulk of its revenues in the US, and has been one of the keenest investors in the emerging markets of Latin America and Eastern Europe.

Minor challenges

Ahold stressed its cautious optimism about the year ahead.

"We expect to significantly surpass last year's numbers in the second half of 2002," chief executive Cees van der Hoeven said.

The firm faces a couple of minor challenges, including the integration of units in Spain, and developments in crisis-hit Argentina, where it has substantial retail interests.

Ahold shares have lost one-quarter of their value since April, hit partly by accounting worries, and partly by concerns over the US retail market.

With operations on both sides of the Atlantic, Ahold has been accused of muddling investors with it use of European and US accounting standards, which differ sharply in certain respects.