Delhaize Group second quarter 2015 results

Financial Summary Second Quarter 2015

• Revenue growth of 18.1% at actual and 3.2% at identical exchange rates
• Comparable store sales growth of 2.5% in the U.S., -0.6% in Belgium and 1.6% in Southeastern Europe
• Group underlying operating profit growth of 25.7% (8.6% at identical exchange rates)
• Group underlying operating margin of 3.7%, an increase compared to 3.4% in the second quarter of 2014

Financial Summary First Half 2015

• Revenue growth of 2.7% at identical exchange rates
• Group underlying operating margin of 3.3% (3.4% last year)
• Free Cash Flow generation of €215 million of which €308 million in the second quarter

Other highlights

• On June 24, 2015, Royal Ahold and Delhaize Group announced the intention to merge

CEO Comments

Frans Muller, President and Chief Executive Officer of Delhaize Group, commented: “3.2% revenue growth, 8.6%  underlying operating profit growth at identical exchange rates and €308 million free cash flow generation represents a solid performance for Delhaize Group in the second quarter of 2015. With a 3.4% real growth, Delhaize America experienced continued sales momentum both at Food Lion and at Hannaford. At Delhaize Belgium, our market share continued to improve compared to the end of 2014. Our Southeastern  European operations’  performance  was  robust,  helped  by  continued  high  growth  in  Romania and positive  comparable store sales growth and network growth in Greece. Our performance in Serbia was stable.
 
We are making good progress with the two strategic initiatives highlighted earlier this year. The execution of our Transformation Plan at Delhaize Belgium continues to go according to plan and at Food Lion we remain on schedule to launch our “Easy, Fresh and Affordable” strategy in the Raleigh market in the fourth quarter of this year. Our first half year performance puts us in a good position to realize our ambitions for the year and we are looking forward to merging our operations with Ahold as announced on June 24, 2015.”