The weak US dollar has hit nine-month profits at Belgian supermarket group Delhaize.
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Operating profit decreased by 11.4% at actual exchange rates to EUR615.4m (US$790.1m) due to the weakness of the US dollar against the euro. At identical exchange rates, operating profit was down only 2%.
For the period to 30 September, net profit from continuing operations reached EUR322.1m, a 26.3% increase at actual exchange rates and a rise of 15.2% when currency fluctuations were excluded from the numbers.
The weakness of the dollar also hit Delhaize’s sales. At actual exchange rates, revenue was down 4.6% to EUR13.6bn. However, at identical exchange rates, sales were up 4.1%.
The rise in turnover was driven by a 3.7% increase in US revenues in local currency thanks to comparable-store sales growth of 2.3% and new store openings.
Delhaize also pointed to a 1.5% increase in revenue from its domestic business, a 14.2% rise in Greek sales and a 35% jump in turnover in Romania and Indonesia.
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By GlobalData“We are effectively managing within the current environment while pursuing our long-term strategic choices,” said Pierre-Olivier Beckers, Delhaize president and CEO. “The continued success of our private-label products and our commitment to competitive pricing through cost savings initiatives have contributed to our improving sales momentum.”
For the third quarter, Delhaize posted revenue growth of 4.8% at identical exchange rates, a “significant” increase compared to the second quarter. At actual exchange rates, revenue declined by 1.7% to EUR4.7bn due to the weaker dollar.
Net profit from continuing operations amounted to EUR103.4m, down 2.9% on the year. When currency fluctuations were stripped out of the results, net profit from continuing operations rose 3.9%.
Operating profit was almost flat at actual exchange rates, inching up 0.1% to EUR215.8m. At identical exchange rates, operating profit was up 8.3%.
