Belgian retail group Delhaize has reported a 33.2% increased in third-quarter net earnings to €71.2m (US$92.1m) due to continued good sales momentum and improved margins.
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“Our excellent third quarter report demonstrates the continued success of our focus on sustainable sales building initiatives and good operational management,” said Pierre-Olivier Beckers, president and chief executive officer. “We are particularly pleased with the 1.7% comparable store sales growth and the margin increase in our US operations. Our Belgian operations increased sales and market share despite a difficult comparison to prior year.”
In the third quarter of 2004, total sales decreased 3.2% to €4.5bn due to the weakening of the US dollar by 8.0% against the euro. At identical exchange rates, sales grew by 2.8%. Organic sales growth was 1.9% due to positive sales momentum at the company’s US banners, resulting in a comparable store sales growth at Delhaize US of 1.7%, and continued sales growth at Delhaize Belgium.
Delhaize US contributed US$4.0bn to third-quarter sales. The company said it has reached an agreement to acquire a package of ten Winn-Dixie stores in North Carolina and Virginia.
Delhaize Belgium posted sales up 4.2% to €952.5m due to the expansion of the sales network by 22 stores compared to last year. Comparable store sales grew by 0.4% in Belgium, despite a strong year-ago performance when sales were boosted by the hot summer weather.
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By GlobalDataDelhaize said that as a result of its strong performance and its positive outlook for the remainder of the year, it now expects earnings before goodwill and exceptionals in 2004 to grow by approximately 10% at identical exchange rates. The company’s previous guidance was for mid-single digit growth in 2004.
