Ahold 2Q profit rise

Dutch retailer Koninklijke Ahold NV is expected to report a 21 per cent increase in second quarter net profit as solid organic growth is bolstered by takeovers and favourable currency fluctuations, analysts said this week. Ahold, due to report results on Thursday by 1000 GMT, is set to report second quarter net profits after goodwill amortisation of between 300 and 323 million euros, with consensus at 310 million, a 21 percent increase from 256 million euros in the year-ago period, a Reuters survey of seven analysts showed. Higher sales in most of the supermarket group's markets are the main driver behind the higher profits, analysts said. Ahold, the world's third largest supermarket chain by sales, generates some 60 per cent of turnover in the United States. In particular, its unit U.S. Foodservice is expected to show strong organic growth, although slower than in previous quarters, said Theodoor Gilissen Bankiers analyst John Ebbing. Ahold results in Europe were also seen strong, with sales lifted by the consolidation of results from Spanish Superdiplo and Scandinavian ICA. Analysts at merchant bank Kempen & Co expect turnover in Europe to rise 41.2 per cent, while excluding acquisitions, sales were estimated to be 7.7 percent higher.