Delhaize Group Q1 2015 results

Financial Summary  

• Revenue growth of 2.2% at identical exchange rates
• Comparable store sales growth of 2.5% in the U.S., -2.8% in Belgium and -0.8% in Southeastern Europe
• Group underlying operating profit of €173 million
• Group underlying operating margin of 3.0% (3.8% in the U.S., 1.4% in Belgium and 2.3% in Southeastern Europe)

CEO Comments

Frans Muller, President and Chief Executive Officer of Delhaize Group, commented: “In the first quarter, revenues  were  resilient  at  Delhaize  America  with  2.5%  comparable  store  sales  growth  despite a meaningful reduction in inflation as the quarter progressed. At Food Lion, we are on track with the roll out of our “Easy, Fresh & Affordable” strategic initiative in an additional 160 stores.”
 
“In Belgium, following the agreement with our social partners on the Transformation Plan on February 23, we are implementing significant changes required to revitalize our business. During the first quarter, our profitability was impacted by investments in prices, promotions and marketing expenses but we saw a gradual improvement in our revenue and market share trends. We expect revenues and profitability to improve  in  the  second  half  of  the  year.  In  Southeastern  Europe,  while  our  comparable  store  sales evolution was slightly negative, the trend improved throughout the region.”
 
“Our focus for the Group is unchanged: continue to grow sales and improve market share in our core markets, funded by operational efficiencies and continued capital discipline as reflected by S&P’s recent decision to change our Outlook from “Stable” to “Positive”.”