Dutch food retailer Royal Ahold NV beat forecasts Wednesday with a 22% rise in third-quarter net profit, boosted by lower taxes, and said it planned further cost cuts. Net profit in the three months to Sept. 30 climbed to €238 million ($353.9 million) from €195 million a year earlier, mainly due to lower income taxes. Six analysts polled by Dow Jones Newswires had forecast a net profit of €181.6 million. Last month, Ahold posted a smaller-than-expected 4.3% rise in quarterly sales to €6.04 billion. Operating income increased to €265 million from €261 million. In the U.S, where Ahold generates over half of its sales, operating income at its Stop&Shop/Giant-Landover unit rose 13% to $189 million, while its Giant Carlisle chain reported a 9% drop in operating income to $45 million from $50 million. Its Dutch Albert Heijn unit saw operating income gain 5% to €486 million. Ahold's new cost-cutting program, which will run until 2012 and aims to generate €350 million in cost reductions, will focus "on all
aspects of our business, including store expenses, supply chain, and overhead across the group," said Chief Executive John Rishton. It builds on a three-year €500 million cost-savings plan running to the end of 2009.