Turnover and profit growth
Delhaize saw its turnover grow by 18.1 % in its second quarter, but it would only have been a 3.2 % turnover increase if the exchange rate fluctuations are ignored. The Belgian group experienced a 2.5 % like-for-like turnover increase in the United States, while South East Europe managed a 1.6 % like-for-like turnover increase.
The Belgian half of the upcoming Ahold Delhaize merger had a sizeable operational profit increase, up 25.7 %, although it would have been a ‘mere’ 8.6 % if exchange rate fluctuations are ignored. The underlying operational margin was 3.7 %, up 0.3 % compared to the margin in the second quarter of last year.
“Transformation plans are on schedule”
Current chairman and CEO of Delhaize Group, Frans Muller, was satisfied about the company’s performance and also pointed to the positive 215 million euro cash position, thanks to the 308 million euro from the second quarter.
Thanks to an actual 3.4 % growth, Delhaize America still did well, both at Food Lion and at Hannaford, he feels. The 0.3 % Belgian turnover drop is still an improvement over the end of last year, although the group has not divulged any specifics.
“We are making strides with the two strategic initiatives we mentioned earlier this year”, Muller explained. Delhaize Belgium’s Transformation plan is on schedule and the company is also on track to roll out its “Easy, Fresh and Affordable” strategy at Food Lion in the fourth quarter. “Our first half performance enables us to fulfil our full-year plans and we look forward to merging our activities with Ahold’s”, the CEO concludes.
