BELGIUM: Delhaize raises outlook on Q3 gains

By: just-food.com | 5 November 2009
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  • Q3 EBIT up 5.7%
  • Raises full-year profit guidance
  • LFL US sales drop

Belgian retailer Delhaize has raised its outlook for fiscal 2009 after expectation beating third-quarter profits were boosted by cost savings and promotions.

Delhaize, which generates about 70% of sales in the US, said that EBIT rose 5.7%, climbing to EUR228m (US$336m) in the July-September quarter.

In the US, like-for-like sales were dented by food deflation and lower consumer spending, decreasing by 1.3%. However, in Belgium same-store sales were up 4.6%, the company revealed.

Delhaize also said that profits were lifted by its cost-cutting efforts. The Food Lion operator indicated that it is on-track to generate savings in the region of EUR100m this year, on the back of last year's cuts of over EUR60m.

Looking to the full-year, Delhaize raised its profit guidance to a 1-4% range. Previously, the top-end of Delhaize's guidance was 3%.

Click here for the full press release, or check back later for just-food's post conference call insight.

Sectors: Retail

Companies: Delhaize

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