Delhaize Q3 results 2011

Financial Highlights Third Quarter 2011 (at identical exchange rates)

  • Group revenue growth of 6.6% (+3.4% excluding Delta Maxi)
  • U.S. comparable store sales growth increased to 1.9%
  • Strong revenue growth in SEE & Asia segment of 49.2% (+11.0% excluding Delta Maxi)
  • Group operating profit growth of 1.8% (+3.4% excluding Delta Maxi); resilient Group operating margin of 4.5% (4.7% excluding Delta Maxi)

Other Highlights

  • Completed Delta Maxi acquisition and consolidated results as from August 1, 2011
  • Successful retail bond issue raised EUR 400 million in October to support New Game Plan execution and refinance Delta Maxi debt
  • Capital expenditures guidance for 2011 of EUR 820-840 million, including EUR 40 million for Delta Maxi

CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group, commented: “The third quarter was a period of accelerated top line growth. We are particularly pleased with the performance of our operations in Southeastern Europe where Alfa Beta in Greece and Mega Image in Romania generated strong profitable revenue growth in a difficult environment.”

“That we are pulling the right levers is evidenced by the momentum in the rebranded Food Lion markets that continue to deliver excellent results and outperform the rest of the network. At the same time, the economic environment, especially in the Southeast of the U.S., continues to weigh on customer sentiment and their spending behavior.”

“It is strategically important for us to continue executing the long-term choices of the New Game Plan. However, looking ahead, we need to be mindful of the fact that business conditions across our markets became tougher towards the end of the quarter as it is increasingly difficult to pass on higher cost inflation to retail prices. We expect this environment will continue to have an impact on the remainder of the year.”

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