Belgian supermarket chain Delhaize today announced that its second quarter net profit increased by 23.1% over last year on the back of strong sales growth in the US and Belgium.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Net profit totalled EUR94.6m (US$121.4m), up from EUR76.9m last year. Net sales climbed 6.5% to EUR4.9bn, up from EUR4.6bn reported in the second quarter of last year.
In its home market of Belgium, sales increased 7.7% due to its acquisition of Cash Fresh in May and same-store sales growth of 3.2%.
In the US, Delhaize said it has converted 21 of its Kash ‘n’ Karry stores to the more upmarket Sweetbay banner in the quarter. The cost of the conversion, coupled with increased energy, utility and medical costs, put pressure on margins, the company said. This was offset by increased sales and cost-control measures, the retailer added.
US sales growth was driven by Food Lion’s strong performance and improved performance at Hannaford stores.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataDelhaize restated its FY guidance, raising its US same-store sales growth prediction to 2.5-3%, up from 1.5-2%. The company also raised net sales-growth guidance to 4.5-5.5%, up from 4-5%.
