Belgian supermarket group Delhaize has posted a slight dip in fourth quarter profits, which were hurt by a weaker US dollar. Earnings before interest and tax (EBIT) fell 0.8% to EUR262.4m (US$346.1m).
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In the retailer’s home market of Belgium, operating profit rose 21.8% to EUR523.2m.
In the US, a market which generates about 80% of Delhaize’s sales, operating profit dropped 5% to EUR206m. Delhaize operates the Food Lion and Sweetbay chains in the US.
Net profits for the fourth quarter totalled EUR114.7m, down from EUR117.3m for the comparable period of last year.
Delhaize, which also owns retail operations in Greece, Indonesia and Romania, said it would propose a dividend of EUR0.99 per share for 2006, up 10% from last year.
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By GlobalDataLooking to the full year, the company said that it is targeting EBIT growth of 6-8%, net profit growth of 8-12% and sales growth of 4-5.5%.
“Our teams continue to implement new initiatives aimed at driving a sales-led culture and pursuing our differentiation strategy, from product and concept innovation to major remodelling activity to an accelerating store opening program,” said president and CEO Pierre-Olivier Beckers. “Our investments in systems, processes and supply chain, and our continued pursuit of executional excellence will support this commitment in 2007.”
Delhaize also announced today (16 March) plans to sell its health care and beauty chain DI for EUR33.4m to Belgian holding companies NPM/CNP and Ackermans & Van Haaren.
