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.
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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.
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