Delhaize Group : Delhaize Group Issues Preliminary First Quarter 2013 Results
and Postpones Capital Markets Day
BRUSSELS, Belgium, April 22, 2013 - Delhaize Group (Euronext Brussels: DELB,
NYSE: DEG), the Belgian international food retailer, announces preliminary
unaudited figures for the first quarter of 2013 and its decision to postpone
its Capital Markets Day.
» First Quarter 2013 Results (based on preliminary unaudited figures)
In the first quarter of 2013, Delhaize Group's revenues were €5.5 billion, an
increase of 2.1% and 1.5% at identical and actual exchange rates,
respectively. Organic revenue growth (excluding revenues from the 126 stores
and 45 stores closed in the U.S. in Q1 2012 and Q1 2013 respectively) was
3.8%. In the U.S., comparable store sales growth was 1.9% (3.0% including a
+1.1% calendar impact), fueled by favorable weather conditions and continued
good volume trends in the Food Lion repositioned stores and at Hannaford. This
was partly offset by deflation which was however at a lower level than the
previous quarter. In Belgium, comparable store sales growth was 2.4% (0.6%
including a -1.8% calendar impact) as a result of inflation and improved
volume trends. In Southeastern Europe, revenues grew by 6.8% at identical
exchange rates due to store openings, while consumer spending is under
pressure in the region.
Underlying operating profit was €214 million, a 13.7% increase compared to the
first quarter of 2012 at identical exchange rates (+13.0% at actual exchange
rates) resulting in an underlying operating margin of 3.9% (3.5% in Q1 last
year). In the U.S., underlying operating margin was 4.2% (3.7% in Q1 last
year) as a result of positive sales leverage supported by the favorable
calendar impact, non-performing store closures, cost reductions and Bottom
Dollar Food's significantly improved results. This was partly offset by
continued price investments. In Belgium, underlying operating margin was 5.1%
(4.6% in Q1 last year), mostly driven by cost control and positive sales
leverage. In Southeastern Europe, underlying operating margin decreased to
1.4% (2.0% last year), mostly driven by price investments.
Underlying EBITDA of €369 million represented a 7.1% increase compared to the
first quarter of 2012 at identical exchange rates (+6.4% at actual exchange
Free cash flow reached €255 million (€87 million in Q1 2012) due to higher
EBITDA, working capital improvements and continued capital discipline.
Full first quarter results will be disclosed on May 8, 2013 as initially
scheduled, including a normally scheduled conference call with management.
» 2013 Outlook
As a consequence of our continued focus on our strategic priorities, Delhaize
Group expects underlying operating profit of approximately €775 million for
the full year 2013 at identical exchange rates.
» Postponement of Capital Markets Day
Delhaize Group announces the decision to postpone its Capital Markets Day,
previously scheduled for May 8, 2013, until later in the year. This will allow
the Company to provide a more comprehensive update on its business and
» Delhaize Group
Delhaize Group is a Belgian international food retailer present in ten
countries on three continents. At the end of 2012, Delhaize Group's sales
network consisted of 3 451 stores. In 2012, Delhaize Group posted €22.6
billion ($29.0 billion) in revenues and €104 million ($134 million) in net
profit (Group share). At the end of 2012, Delhaize Group employed
approximately 158 000 people. Delhaize Group's stock is listed on NYSE
Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
This press release is available in English, French and Dutch. You can also
find it on the website http://www.delhaizegroup.com. Questions can be sent to
Investor Relations: +32 2 412 21 51
Media Relations: +32 2 412 86 69
Press release in pdf format
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Delhaize Group via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.