International food retailer Delhaize has reported a rise in sales for 2012, but charges and lower profits dampened its performance.
Delhaize said in an interim statement today (17 January) that net sales rose by 7.7% in 2012 versus 2011, to EUR22.7bn (US$30bn), driven mainly by Asia, a more favourable Euro-US dollar exchange rate and higher same-store sales at its Food Lion chain.
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Momentum slowed in the fourth quarter, with sales up by 2.3% to EUR5.76bn, although the pace of sales growth in Belgium accelerated during this period.
Delhaize’s results were hampered by its comments on profitability and restructuring charges. The group said underling operating profits are expected to decline by 17.5% for the year.
The group also reported EUR390m in one-off, pre-tax charges, of which EUR300m will be recognised in the fourth quarter of 2012 and EUR90m in the first quarter of 2013.
In addition, the firm said it will close stores, including 34 Sweetbay stores, and this will result in around EUR130m store closing expenses and related impairments, of which EUR80m will be incurred in 2013.
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