Belgium-based retailer Delhaize has reported on a strong first quarter of 2009 with operating profit increasing by 7.3 per cent, or 20.2 per cent at actual rates.
Revenue growth through the period stood at 3 per cent (13.2 per cent at actual exchange rates), with comparable store sales of 2 per cent in the US and 1.7 per cent in Belgium and an operating margin increase to 4.8 per cent.
'We are extremely pleased with the solid performance of all our operating companies in the current difficult environment,' said president and CEO Pierre-Olivier Beckers. 'We generated positive comparable store sales growth and supported our margins on both sides of the Atlantic through targeted price management, the continued growth of private brand revenues and improved inventory management – in particular, our ability to grow market share in Belgium in this difficult environment is a clear sign that our price repositioning is bearing fruit.'
And Mr Beckers remained optimistic for the rest of the year, despite advising caution in the current economic climate.
'We are on target with our plans to improve our cost structure by €100m and to generate €50m in working capital improvements this year,' he added. 'This will significantly enhance our flexibility to reinvest in our business and support our profitability.
'While we remain cautious for the rest of the year as a result of the global economic uncertainty, our solid first quarter performance and our plans for the rest of the year lead us to confirm our 2009 guidance.'
