Belgian retailer Delhaize has released its results for the third quarter of 2012, reporting on growth in overall group revenue of 1.6 per cent at identical exchange rates (2.1 per cent organic growth).

Comparable store sales dropped by 1.6 per cent in the US, while there was growth of 0.6 per cent in Belgium compared with the same period last year.

Net profit climbed 33 per cent to €189m, mainly the result of a tax benefit following an expense in the same period of 2011, while operating profit dropped 2.9 per cent to €231m, knocking down operating margin to 4 per cent from 4.5 per cent.

'Despite tough market conditions, we are seeing signs that our investments are yielding positive results, with revenues increasing and strong cash generation in the last three months,' said Pierre-Olivier Beckers, president and CEO of Delhaize Group. 'The repositioning of Food Lion continues to give us confidence for the future. In the third quarter, the repositioned stores, which account for over 60 per cent of the Food Lion network, delivered positive comparable store sales, leading to a flat performance for the Food Lion banner when adjusted for inflation.

'In Belgium, the economic and competitive environment has not improved,' he noted. 'While we are not happy with the evolution of our market share, we are encouraged by the second consecutive quarter of positive comparable store sales growth. In addition, in Southeastern Europe & Asia, our initiatives are gaining momentum and delivering solid revenue growth coupled with improved profitability.'

Looking ahead, Beckers said the group was confident that it would reach the bottom-end of its full-year underlying operating profit guidance range, which is forecast at between 15-20 per cent.

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