 Ahold needs to get back on track after the US Foodservice scandal |
Dutch retail giant Ahold has posted flat third-quarter sales results as competition in the US hit margins. Ahold generates three-quarters of its turnover in the US, but is struggling after an accounting scandal hit its US catering supplies firm, Foodservice.
Ahold, the world's fourth-biggest food retail and food service group by sales, said revenues rose 0.7% to 10.3bn euros ($13.14bn; �6.9bn).
The results of an Ahold retail review are expected on Monday next week.
'Weak'
"The third quarter has been even more challenging in the US, reflecting increased competitor activity and weaker economic conditions, leading to margin pressure," Ahold said in its results statement.
Ahold is under pressure from hedge funds Centaurus Capital and Paulson, which together hold a 6.4% stake, to break up the company.
The market is focusing on next Monday's review, with Barclays Capital predicting the most likely outcome would be for Ahold to sell its US Foodservice and central European operations and return money to shareholders.
"The US retail business remains weak and US Foodservice was only marginally better," said Petercam analyst Stefaan Genoe, after the latest results were released.
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