Delhaize has posted revenue growth of 3.2% (at identical exchange rates) in the second quarter of the year, according to accounts filed this morning (30 June).
The Belgian retail group, which is in the process of finalising its merger with Ahold, said that comparable store sales growth was up 2.5% in the U.S., down 0.6% in Belgium and up 1.6% in Southeastern Europe.
Across the first half of the year, Delhaize posted revenue growth of 2.7% at identical exchange rates.
Commenting, Frans Muller, President and Chief Executive Officer of Delhaize Group, said, “3.2% revenue growth, 8.6% underlying operating profit growth at identical exchange rates and €308 million free cash flow generation represents a solid performance for Delhaize Group in the second quarter of 2015. With a 3.4% real growth, Delhaize America experienced continued sales momentum both at Food Lion and at Hannaford.
"At Delhaize Belgium, our market share continued to improve compared to the end of 2014. Our Southeastern European operations’ performance was robust, helped by continued high growth in Romania and positive comparable store sales growth and network growth in Greece. Our performance in Serbia was stable."
Commenting, Barclays European Food Retail Equity Research said, "This quarter marks a further acceleration in volume growth, demonstrating Food Lion and Hannaford’s competitive price positioning and adapted store concept. In Belgium, Delhaize’s commercial initiatives to regain traffic continued to gain traction as CSS were marginally negative and operating margin was stable during the quarter.
"This performance is all the more encouraging given that Delhaize’s restructuring plan in Belgium should bear fruit from 2H15 onwards. Lastly, Free Cash Flow remained solid in 1H, demonstrating Delhaize’s continuing capex discipline and strict control of costs."
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.
