Belgian supermarket group Delhaize has reported a 7.8% rise in underlying profits for 2007 thanks to strong sales in the US and Greece.


The retailer posted operating profit of EUR937.2m (US$1.4bn), excluding a US$18.6m impairment charge, representing an increase at constant exchange rates of 7.8%.


At actual exchange rates, operating profit fell by 1%. Net profit rose by 16.5% to EUR410m, with sales at identical exchange rates rising by 4.9% to EUR18.96bn.


“Delhaize Group had an excellent year in 2007,” said president and CEO Pierre-Olivier Beckers. “We realised the strongest sales momentum in years in our US and Greek operations, and we held our industry-leading operating margins due to a better sales mix and disciplined cost management.”


Beckers added that in the face of “an increasingly uncertain economic environment”, the strong performance in the US and Greece had continued in the fourth quarter, while the company’s Belgian operations had recovered after a “challenging” third quarter.

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“As reflected in our current guidance, 2008 promises to be another dynamic year”, Beckers added. “We continue to implement new initiatives in our existing stores aimed at increased differentiation from our competition.” Delhaize plans to add around 150 stores in the coming year.


Delhaize’s Greek subsidiary, Alfa-Beta, recorded 13.9% revenue growth in 2007, to EUR1.2bn, while US sales grew by 5.1% to $18.2bn (EUR13.2bn).


Revenue growth in the US was supported by “outstanding” comparable store sales growth of 3.8%, and new stores openings, notably at its Food Lion chain, the company said.


Delhaize said this was the highest comparable store sales growth it had seen in the US in more than ten years. It is expecting comparable store growth of 2.5% to 3.5% in the US in 2008.


Sales in Belgium rose by 1.7% to EUR4.4bn, on the back of comparable store sales growth of 1.6%.


Looking ahead, Delhaize said it expected group revenues to rise by between 4% and 5.5% in 2008, with operating profit forecast to increase by 6% to 8%. Net profit from continuing operations is expected to grow by 25% to 30% at identical exchange rates.