SOURCE: Delhaize Group

November 10, 2010 02:12 ET

Delhaize Group Reports Third Quarter Operating Profit Growth and Confirms Full Year 2010 Guidance

BRUSSELS, BELGIUM--(Marketwire - November 10, 2010) -


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 Financial Highlights Third Quarter 2010 (at identical exchange rates)
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» Group revenue growth of 0.8% (+8.6% at actual exchange rates)
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 » Improvement of U.S. comparable store sales evolution to -1.8%
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» Group operating profit growth of 1.2% (+9.5% at actual exchange
  rates)
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 » Stable operating margin of 4.7%; solid operating margin of 4.8% in
  Belgium
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 » Strong free cash flow generation of EUR 185 million (at actual
  exchange rates)
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 Other Highlights
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 » Confirmation of 2010 operating profit growth guidance
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 » Successful exchange offer of outstanding debt for new lower-coupon
  debt
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CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group, commented: "During the third quarter, our Group posted positive revenue and profit growth and a marked improvement in U.S. comparable store sales as a result of best-in-class performance by Hannaford in the Northeast and improving sales trends at Food Lion. The positive trend in the U.S. combined with strong performances in Belgium and Greece enables us to generate a healthy and stable operating profit margin."

"In addition to the implementation of the new pricing strategy started at the beginning of the year, as included in our New Game Plan, over these past few months, our teams have worked relentlessly to strengthen Food Lion's strategy as a clearly differentiated retailer in its markets. A number of additional key strategic sales building initiatives will start to be more visible to our customers as from the second quarter of 2011. This work will be substantially completed by the end of 2012 and will be largely financed by the EUR 500 million gross savings previously announced."

"Our improved third quarter results, our plans for the rest of the year and the trends we see today, enable us to confirm our 2010 full year operating profit growth guidance as issued on August 13, 2010."








[HUG#1460684]





Press release in pdf format: http://hugin.info/133961/R/1460684/399792.pdf




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Source: Delhaize Group via Thomson Reuters ONE

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