BELGIUM/USA: Delhaize reports lower sales, cuts full-year forecasts

Belgian retailer Delhaize has reported third-quarter sales down 7.5% year-on-year to €5bn (US$5bn). Belgium's second largest supermarket chain said earnings before interest, tax, depreciation and amortisation (EBITDA) fell to €344.7m for the third quarter, down from €414m for the same period last year.

November 7, 2002

Belgian retailer Delhaize has reported third-quarter sales down 7.5% year-on-year to €5bn (US$5bn).

Belgium’s second largest supermarket chain said earnings before interest, tax, depreciation and amortisation (EBITDA) fell to €344.7m for the third quarter, down from €414m for the same period last year.

Delhaize, which generates around 80% of its revenues from its operations in the US, had been expected to post EBITDA of €333.8m and sales of €5.02bn, according to a Reuters poll of 10 analysts.

Net profit in the third quarter amounted to €23.8m compared to a net loss of €14.9m in the third quarter of 2001. Last year’s loss includes an exceptional charge of €73.4m related to the closing of Super Discount Markets and an asset impairment on Delvita.

Following the third-quarter results, Delhaize lowered its full-year sales growth forecast to between 1 and 2% from an earlier prediction of between 1.5 and 2.5%.