BELGIUM: Delhaize profit, sales hit by weak US dollar
Belgian retail group Delhaize has reported a 3.8% increase in operating profit at identical exchange rates for the first quarter of 2005.
However, because of the weaker US dollar, net profit from continuing operations decreased by 1.1% to €83.0m (US$105.5m). At identical exchange rates, net profit from continuing operations would have increased by 2.2%. Discontinued operations include 34 Kash n' Karry stores closed in Florida in the first quarter of 2004, the loss-making Thai operations (divested in the third quarter of 2004) and the Slovak operations (pending sale).
Delhaize, which does most of its business in the US, posted organic sales growth of 1.5% for the first quarter. Net sales and other revenues decreased by 0.2% to €4.3bn, impacted by the weakening of the US dollar. At identical exchange rates, net sales and other revenues increased by 3.1%, helped by the 4.3% increase in US sales, supported by the integration of Victory and comparable store sales growth of 0.5%. Delhaize
"In the first quarter of 2005, Delhaize Group posted higher profit at identical exchange rate in spite of a more competitive environment in our key markets," said Pierre-Olivier Beckers, president and CEO. "Better margin management, particularly at Food Lion and Delhaize Belgium, allowed us to compensate for higher expenses incurred, particularly expenses related to the integration of Victory and the launch of Sweetbay Supermarket ahead of related sales benefits."
Delhaize said that in 2005, it expects to increase its sales network by approximately 102 stores to a total of 2,667 stores (including the acquisition of Cash Fresh and the sale of 11 Delvita stores in Slovakia). Net sales and other revenue is expected to increase by between 3.5% and 4.5%. Net profit growth is expected to be between 15% and 20%.
Companies: Delhaize Group
As organic food continues to move into the mainstream, a wealth of companies, from the family-run to the multinational, are taking advantage of this popularity, with new products and line extensions. ...
The organic market appears to be going from strength to strength, especially if this year's BioFach exhibition is anything to go by. With over 2,000 exhibitors from 70 countries and more than 30,000 v...
Natraceutical, a spin-off of Spanish food group Natra-Zahor, has unveiled ambitious expansion plans, spurred on by growth in the functional foods market. With such high levels of interest in healthy f...
The Australian state of Victoria is investing in a programme to identify new opportunities for its food and agriculture industries. As part of this initiative the government conducted extensive resear...
Innovation is king - or is it? Fear of legislation or simple lack of imagination has depressed innovation in the food sector for a couple of years. Brand extensions and me-too copycats are not the sam...
Belgian food retailer Delhaize has announced that it has completed the acquisition of the Cash Fresh supermarket chain in Belgium, after unconditional approval by the Belgian antitrust authorities....
Supermarket company Delhaize says it has received approval from Belgian competition authorities have approved its plan to acquire retail chain Cash Fresh, reports the Dow Jones news agency....
The European Commission has asked European Union ministers that EU member states should continue to import organic meat and other foodstuffs freely for one more year until December 2006, whilst it est...
- US food next wave on display at Winter Fancy Food
- Does Kraft Heinz want to swallow Unilever whole?
- Comment: Meal kits in US - don't believe the hype
- How General Mills plans to grow - CAGNY
- Focus: Nestle CEO plan to balance sales, earnings
- Unilever launches operational review
- Kraft Heinz pulls Unilever bid
- Kerry operating earnings strengthen on slow sales
- Glanbia focuses on nutrition with Irish dairy spin
- General Mills issues profit warning