Belgian retail group Colruyt has posted rising first-half profits as the company increased sales amid growing competition and a cool summer.
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The retailer posted underlying operating profit of EUR197.3m (US$289.5m), up 3.7% on the year.
Colruyt said that in spite of a difficult summer and an increasing competitive climate, it had maintained its gross profit margin. Sales rose by 6.6% to EUR2.71bn in the six months from April to September.
The company’s retail division, which accounts for 77% of group revenues, saw sales climb by 6%, with operating profit rising by 3.5%.
Colruyt reported that sales at its Colruyt stores rose by 4.8% to EUR1.8bn, but added that the unfavourable weather conditions, combined with increased competition, had put some pressure on gross profit at the chain. Combined revenues from its Okay and Bio-Planet chains rose by 23.3% to EUR115.2m.
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By GlobalDataColruyt’s wholesale division saw revenues rise by 6.8%, with operating profit by 2%.
On the back of the better-than-expected first-half figures, Colruyt has raised its full-year 2007/08 net profit guidance to EUR276m from its previous forecast of EUR274m.
