BELGIUM: Costs weigh on Delhaize FY profits
By Michelle Russell | 7 March 2013
- Net profit falls 73.7%
- Operating profit down 52%
- Net sales climb 7.7%
 |
Delhaize Group saw profits slide in 2012 as a result of charges |
Belgium-based retailer Delhaize Group saw profits slide in 2012 as costs from store closures and impairments charges hit its bottom line.
Net profit fell 73.7% to EUR125m, the retailer reported today (7 March). Delhaize blamed the decline on store closures and on an impairment charges on its Maxi and Sweetbay operations.
Delhaize, however, achieved revenues of EUR22.74bn, representing an increase of 7.7% at actual exchange rates, mainly due to the strengthening of the US dollar against the euro. Organic revenue was up 2.1%, at identical exchange rates.
However, the retailer, which last month announced plans to cut 500 jobs from its business across the Atlantic, said US sales were down 2.2%, with comparable-store sales down 0.8%. Underlying operating margin dropped to 3.8% in 2012 from 4.8% last year, mainly as a result of price investments.
President and CEO Pierre-Olivier Beckers said the company remains focused on "accelerating the progress at [US banner] Food Lion, revitalising Delhaize Belgium and driving growth in south-eastern Europe" in 2013.
Click here for the full results release.
Click here for a look at how analysts viewed the results.
Sectors: Financials, Retail
Companies: Delhaize Group, Lion
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