Embattled Dutch retailer Ahold has posted €1.208 billion net loss for 2002 and took huge write-downs in a move it hopes will consign a billion-dollar accounting scandal to history.
Ahold, the world's third-largest food retailer, said in a much-delayed statement the loss stemmed from charges relating to its US Foodservice unit, where the disclosure of profit overstatements earlier this year shattered Ahold's credibility and decimated its share price.
Ahold said 2002 goodwill impairment charges under US GAAP accounting standards amounted to an unaudited €3.2 billion, of which €2.7 billion related to U.S. Foodservice.
Markets reacted positively to the news and the possibility that the worst was over. The share traded sharply higher in early dealings and stood at €8.48 €s this morning, a rise of 3 per cent.
Ahold presented the results to its key lending banks last night after three postponements for detailed verification of all the paperwork.
Ahold also said it revised its 2001 net profit to €750 million from €1.113 billion and the 2000 figure to €920 million from €1.116 billion.