Belgian retailer Delhaize has posted revenue growth of 4.3% at identical exchange rates, in a set of results that was brought forward due to the impending completion of its merger with Delhaize.
The retailer reported comparable store sales growth of 2.9% in the US, 2.1% in Belgium and 8.7% in Southeastern Europe in the period.
Group underlying profit stood at €247 million, an increase of 12.1% at identical exchange rates.
“We are pleased with the results we have published today," said Delhaize chief executive Frans Muller. "We grew revenues and underlying operating profit in each of our three operating segments while we also generated €258 million of operating free cash flow (excluding Transformation Plan and merger related costs) in this second quarter.
"At Delhaize Belgium, our market share continued to recover following the disruptions related to the Transformation Plan. Nonetheless, our performance remains largely driven by our affiliated network as our integrated stores’ sales growth lags expectations, in a competitive and price-driven market. Southeastern Europe’s growth was again robust, driven by Romania and Greece.”
Commenting, Barclays European Food Retail Equity Research said that the retailer's results "were generally above our expectations."
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. To subscribe to ESM: The European Supermarket Magazine, click here.
