Belgian retailer Delhaize has reported on a strong third quarter of 2009, with both revenue and operating profit increasing compared with the year-earlier period.
Operating profit for the three-month period jumped 5.7 per cent (2.1 per cent at actual exchange rates) to €228m (US$336.7m), with operating margin up 4 basis points to 4.7 per cent of revenues.
Total revenue at the group grew 1.9 per cent at identical exchange rates (4.8 per cent at actual exchange rates) to €4.9bn (US$7.2bn), mainly due to the strengthening of the US dollar against the euro.
By sector, domestic revenue in Belgium increased 7.2 per cent year-on-year, boosted by 4.6 per cent comparable store sales growth. Operations in Greece (up 11.2 per cent) and Romania/Indonesia (up 26.2 per cent) saw revenue growth, while US revenues fell 1.2 per cent at identical exchange rates to €3.3bn (US$4.9bn).
'In the third quarter of this year, Delhaize Group demonstrated once again its ability to operate successfully in a challenging environment,' said group president and CEO Pierre-Olivier Beckers. 'While, as expected, price pressures in the US continued to impact sales, we were encouraged to see that targeted promotions and outstanding store execution resulted in improving volume trends for the third consecutive quarter.
'Although we are mindful of the volatile environment, we remain confident in our operating companies' resilience and our plans for the rest of the year,' he added. 'Our results for the first nine months of the year give us the confidence to upgrade our earlier communicated guidance of 0-3 per cent operating profit growth to 1-4 per cent at identical exchange rates and including the 53rd week in 2008.'
