Delhaize sees Q2 profit soar 20%
Brussels, Belgium – Delhaize Group reported increases in net profit, same-store sales and revenues during the second quarter of fiscal 2013. Net profit totaled $139.2 million, up 20% from the same quarter in the prior year. Same-store sales grew 1.1% in the U.S. and 0.8% in Belgium, while revenues came to roughly $7.1 billion, a year-over-year increase of 7.1%.
Pierre-Olivier Beckers, president and CEO of Delhaize Group, which operates Food Lion in the U.S., credited volume growth, price investments and store remodels at different global locations for helping to drive the company’s impressive profit performance.
“Our group has delivered solid results for the second quarter,” said Beckers. “In the U.S., we experienced our third consecutive quarter of positive volume growth. At Food Lion, 178 additional stores were repositioned as part of Phase 4, bringing the total of repositioned stores to almost 80% of the network. At Hannaford, we have implemented our targeted price investments during the second quarter. In Belgium, we are pleased to report market share gains of 35 basis points, mainly resulting from our remodeled stores and network expansion. Southeastern Europe showed further resilience with market share growth in what continues to be a challenging environment.”
Beckers also cited Delhaize’s decision to divest its divest Sweetbay, Harveys and Reid’s banners and also to exit the Montenegro market in Europe. Analysts have pointed to renegotiations on supplier contracts Delhaize conducted late last year as another driver of the company’s positive quarterly results.