Delhaize Group has reported on a positive set of full-year results for fiscal 2010, recording improved revenues and a stable operating profit, boosted by a strong finish to the year.
According to the Belgium-based supermarket group, year-on-year revenue grew 1 per cent at identical exchange rates, or 4.6 per cent at actual exchange rates, to hit €20.8bn in 2010.
This growth was aided by solid revenue growth of 4 per cent at Delhaize Belgium, the continued strong performance of Alfa-Beta in Greece, and revenue growth of 20.5 per cent at identical exchange rates in Romania and Indonesia, the company noted.
Operating profit increased 8.7 per cent at actual exchange rates to cross the €1bn mark for the first time, Delhaize revealed, representing a 'stable' result after excluding US restructuring, store-closing and impairment charges of €44m.
Revenues during the fourth quarter of the year, increased 7.6 per cent at actual exchange rates, or 1.5 per cent at identical exchange rates, to hit €5.2bn, while operating profit soared by 38 per cent at actual exchange rates to €307m.
'Our Group finished 2010 with a strong fourth quarter, with improved revenue growth, solid operating margins and double digit operating profit growth,' confirmed group president and CEO Pierre-Olivier Beckers. 'Our fourth quarter operating expenses decreased thanks to our teams' focus on sustainable cost management. In addition, our free cash flow generation was again very strong, a timely achievement as we just announced our agreement to acquire Delta Maxi Group in Serbia.
'This acquisition, expanding our presence into five new countries with good growth prospects, is a major opportunity for Delhaize Group to become a leading retailer in southeastern Europe and an important step in rebalancing our geographic portfolio among our US, European and Asian businesses,' he added.
'2010 was the first year of our New Game Plan strategy. During the year we improved our price competitiveness, successfully managed our operating expenses, stepped up our growth in our newer operations and maintained our solid operating margin,' Mr Beckers noted. 'We are on track to achieve our ambitious €500m annual gross cost savings target by the end of 2012.'
