Last Refreshed: 5/13/2021 12:53:26 AM
Press release

Delhaize Group 2012 revenues and preliminary results

Fourth Quarter 2012 Revenues (at identical exchange rates)

  • Group revenue growth of 0.3%; organic revenue growth of 2.5%
  • Positive comparable store sales and volume growth (both transactions and items) at Food Lion
  • Flat comparable store sales at Delhaize America and 0.8% comparable store sales growth at Delhaize Belgium

Full Year 2012 Results (at identical exchange rates)

  • Group revenue growth of 2.9%; organic revenue growth of 2.1%
  • Preliminary unaudited underlying operating profit decline of approximately 17.5% compared to 2011
  • Free cash flow generation in excess of €600 million

Other Highlights

  • Approximately €390 million of non-recurring pre-tax charges, of which less than €20 million is an incremental cash charge, and of which approximately €300 million will be recorded in Q4 2012 and approximately €90 million will impact Q1 2013
  • Announcing a Capital Markets Day on May 8, 2013

CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group said: “We are pleased to announce that organic revenue growth improved during the fourth quarter, in particular as a result of positive volume growth at Delhaize America. Food Lion reported positive volume, transaction and comparable store sales growth for the quarter and recorded its best quarterly performance since 2006.”
 
“As a result of our cost control and capital allocation discipline, in 2012 we generated free cash flow above €600 million, exceeding our previously announced target of €500 million. This strong cash flow performance provides us the means to continue our repositioning efforts, to strengthen our store network and to further deleverage the balance sheet. Our preliminary unaudited underlying operating profit is within the guidance range provided in May 2012.”
 
“Today, we are also announcing goodwill and asset impairment charges, primarily related to our Maxi operations, as well as charges related to store closures, primarily related to Sweetbay. These actions, coupled with the portfolio review announced last year, enhance the health of our store network and create a solid base on which to go forward.”
 
“We remain determined to accelerate the transformation of our business. In 2013, our focus will be on further strengthening our store brands, accelerating revenue growth, maintaining strict cost control and generating free cash flow.”