Delhaize has repeated that it expects profits to grow in the second half of the year.
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Growth during the second half, the Belgian supermarket chain said, will allow it to hit its full-year targets.
“We certainly anticipate an improvement in trade during our second half and we believe we will achieve 4-5.5% revenue growth in the full year,” a spokesperson for the group told just-food.
Delhaize has also forecast that EBIT will grow by 6-8% based on constant exchange rates.
Delhaize posted a drop in first quarter EBIT two weeks ago when exchange rates took a chunk out of the group’s profits. About 70% of the company’s sales are generated in the US and Delhaize has felt the negative impact of a weak dollar.
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By GlobalDataSpeaking to shareholders at the company’s AGM yesterday (22 May) CEO Pierre-Olivier Beckers reportedly conceded that the pressure on profits had continued into the second quarter. However, he reiterated the company’s insistence that things will pick up in the second half.
“The situation in the first quarter has continued into the second so far,” Beckers said. “We have said profit growth will come in the second half.”
Beckers said Delhaize is continuing to successfully pass on inflation to customers, except in Belgium and the Sweetbay chain in the US, where it had chosen to cap prices in order to win customers.
