Delhaize Group

March 08, 2012 08:53 ET

Delhaize Group 2011 Results

BRUSSELS, BELGIUM--(Marketwire - Mar 8, 2012) -

This release has been re-published. The original communication by Delhaize Group was published at 07:00 CET, but failed to reach some of the distribution points due to a technical error at Thomson Reuters.

Financial Highlights 2011 (at identical exchange rates)

» Group revenue growth of 4.6% (+2.4% excluding Maxi acquisition)

» Revenue growth in all our operating segments

» Group underlying operating margin of 4.4% (4.8% in Belgium)

» Underlying operating profit growth of 18.8% in Southeastern Europe & Asia (+14.3% excluding Maxi acquisition)

» Proposed full year dividend of EUR 1.76 per share, an increase of 2.3%

Financial Highlights Fourth Quarter 2011 (at identical exchange rates)

» Group revenue growth of 7.0% (+1.5% excluding Maxi acquisition)

» Accelerating positive trends at Bottom Dollar Food in Philadelphia, with positive real net growth

» Group underlying operating margin of 4.8%; stable underlying operating margin of 4.9% at Delhaize Belgium

Appointments and Other Highlights

» Appointment of Pierre Bouchut as EVP and new CFO for the Group, succeeding Stéfan Descheemaeker, now EVP and CEO Delhaize Europe

» Appointment of Mats Jansson as new Chairman, succeeding Count Georges Jacobs de Hagen, who retires

» Proposed appointment of Shari Ballard as new independent Director

» Good progress in creating sustainable future growth at our U.S. operations

» CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group, commented:

"We remained focused on the execution of our New Game Plan throughout 2011, launching a number of growth initiatives across the Group, designed to strengthen the foundation of our business and support its growth potential. At Food Lion, where repositioned stores in the Raleigh market recorded positive volume growth since their launch in May 2011, we are determined to move faster with the repositioning of our brand and implement it in 600 to 700 additional stores in 2012. During the fourth quarter of 2011, the revenue growth in our other U.S. markets was impacted by our decision to pass on cost inflation to retail prices in the face of a very competitive environment."

"While soft revenues and costs related to our growth initiatives in the U.S. negatively impacted our fourth quarter results, we are convinced that the projects we are focusing on are the right ones for our company. With Bottom Dollar Food, we have developed a growth vehicle for the U.S. The growing revenue momentum we have experienced in the Philadelphia market during 2011 indicates to us that we will be able to significantly grow this format. Our recent successful entry in the Pittsburgh market further confirms our outlook. And with the strategic acquisition of Maxi, our Group now has a strong platform in Southeastern Europe where we intend to fully leverage our capabilities across the entire region to drive operating benefits and profitable growth in the region."

"Over the course of 2012 we will further improve our price competitiveness in the U.S. and in Belgium, leverage our strong private brands, open more stores, especially in our newer formats and geographies, accelerate our store remodelings in the U.S. and Belgium and focus on delivering value to our customers. Each of these initiatives will support our plan to accelerate revenue growth as defined by our New Game Plan. The previously announced EUR 500 million gross annual cost savings target, that we expect to exceed by the end of 2012, will in large part fund these initiatives. Finally, our decision earlier this year to close unprofitable stores will enable us to optimize our capital allocation."

Press Release in Pdf:

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Source: Delhaize Group via Thomson Reuters ONE


Contact Information

  • Contacts

    Chris Farrell:
    + 32 2 412 75 71
    Aurelie Bultynck:
    + 32 2 412 83 61
    Steven Vandenbroeke (media):
    +32 2 412 86 69
    Amy Shue (U.S. investors):
    +1 704 633 82 50 (ext. 2529)