Delhaize has reported a positive set of results for the fourth quarter of 2008, with revenue growth of 10.3 per cent at identical exchange rates and including the 53rd week in the US (4.4 per cent excluding the third week).
Comparable store sales growth remained steady with a 2.9 per cent increase in the US and a 2.7 per cent jump in Belgium.
'During the fourth quarter, all of our US operations continued good revenue momentum,' said group president and CEO Pierre-Olivier Beckers. 'Year-end sales in particular were strong and the trend in the number of transactions turned positive again when compared to the two previous quarters.'
For the full year of 2008, revenue growth stood at 5.6 per cent, with comparable store sales growth of 2.5 per cent in the US and 2.2 per cent in Belgium.
Mr Beckers remained confident that the group's concentration on pricing and own-brand strength would support a strong 2009.
'Despite the uncertain economic environment, we are confident that our many initiatives will continue to deliver benefits in 2009. Special attention will be given to our private brand offering and price competitiveness,' he said. 'To support our revenue growth, our profitability and our cash flows, we have planned a series of actions which will positively impact in 2009 our cost structure by €100m.'
Profitability would also be aided by the closure of seven underperforming Sweetbay stores and the divestment of four German stores, leading to a higher annual profit of €7m, he noted.
The group has earmarked 71-81 new stores to be launched during the year, taking the company's portfolio to 2,744-2,754 in total.
