Delhaize has announced that group revenues climbed 3.9 per cent year-on-year through the second quarter of 2011, with positive comparable store sales evolution of 1.6 per cent in the US and flat numbers in its home market of Belgium.
The retailer enjoyed particular success in Southeast Europe and Asia, with revenue growth of 7.8 per cent, or 7.6 per cent at actual exchange rates.
'In the second quarter, revenue growth accelerated in all operating segments as a result of the continued implementation of our New Game Plan,' said group CEO Pierre-Olivier Beckers. 'Comparable store sales growth, helped by sales initiatives and higher retail inflation, turned positive again in the US.
'Alfa Beta again gained market share and grew revenues despite the tough Greek economic climate,' he added. 'The acquisition of Delta Maxi, allowing us to accelerate revenue contribution in Southeastern Europe, is a significant step in the rebalancing of our portfolio towards higher growth markets.'
Delhaize also revealed that operating profit climbed 0.5 per cent on the same period of 2010, although it actually dropped 7.8 per cent at actualexchange rates, while operating margin stood at 4.1 per cent.
Beckers noted that the group was currently seeing results in line with its plans for the year, with Delhaize on track to hit its 2012 annual gross savings target.
'Despite the slight delay we are experiencing in the US category management and supply chain savings, we are confident that the second half of the year will show an acceleration of our revenue and profit momentum,' he said.
'At the end of the second quarter, we are midway towards our 2012 annual gross savings target of €500m and we have achieved already 60 per cent of the planned cost savings to date. These continue to provide us with the necessary fuel to further invest in prices, other sales building initiatives, such as our Food Lion brand repositioning work, and to cover inflation and other cost increases.'
