SOURCE: Delhaize Group

January 20, 2011 14:52 ET

Delhaize Group Accelerates Revenue Growth in the Fourth Quarter of 2010 and Confirms Full Year Earnings Guidance

BRUSSELS, BELGIUM--(Marketwire - January 20, 2011) -

» Fourth Quarter 2010 Revenues

· Revenue growth of 7.6% at actual exchange rates (1.5% at identical exchange rates) · Improvement of U.S. comparable store sales evolution · Continued solid comparable store sales growth in Belgium

» Full Year 2010 Revenues

· Revenue growth of 4.6% at actual exchange rates (1.0% at identical exchange rates) · Strong comparable store sales growth at Hannaford and Delhaize Belgium; improving trend towards year-end at Food Lion

» Other Highlights

· Confirmation of 2010 operating profit growth guidance · Accelerated investment program of approximately EUR 900 million in 2011, including 120 to 130 store openings and approximately 120 store remodels

» CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group: "During the fourth quarter of 2010, our revenue growth improved as a result of the continued implementation of our New Game Plan. As a result of our solid fourth quarter revenues and continued cost management, we confirm our 2010 earnings guidance."

"During the fourth quarter, we have seen a continuation of the encouraging trends of the third quarter at Food Lion. Hannaford again had an excellent quarter. Delhaize Belgium posted excellent sales in the fourth quarter and as a result continued to grow market share and realized the highest annual comparable store sales growth in the last seven years despite the lack of inflation. Alfa Beta again grew revenues in the fourth quarter and increased market share in a very difficult economic environment in Greece. Revenues in the Rest of the World increased by more than 20% in each quarter of this year."

"2011 will be the second year for our New Game Plan and our brands will continue to benefit from the many sales building initiatives such as price investments, private brand innovation and assortment optimization. Funding for these initiatives will come from the EUR 500 million annual gross cost savings that we target to achieve by the end of 2012. We are confident that the many initiatives included in our New Game Plan will allow us to achieve faster growth in the coming years."

Press release in pdf format:

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Source: Delhaize Group via Thomson Reuters ONE


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