The Delhaize Group has seen a plunge in profits for full-year 2012, posting a 56.1 per cent drop in operating profit €390 million, while EBITDA decreased by 18.3 per cent to €1.3 million, both at constant rates.
The Belgian grocery retailer reported revenue growth of 2.9 per cent, totalling €22,737 million for the year. Income from continuing operations sank 78.9 per cent to €125 million. The group said the fall-off in profits is due to "the portfolio optimisation charge in the first quarter, the impairment charge in the fourth quarter and a decline in operating profit which were partially offset by the resolution of tax matters."
Belgium provided revenue growth of 1.6 per cent as a result of network growth and comparable store sales expansion during the year, with like-for-like sales up 0.6 per cent.
Southeastern Europe and Asia had "solid revenue growth" of 34.1 per cent at constant exchange rates following the acquisition of the Maxi banner in 2011, coupled with a strong performance in Greece and Romania.
Revenues at Delhaize America dropped 2.2 per cent during 2012 to $18.8 billion (€14.6 billion) and underlying operating profit saw a 23.5 per cent slump to $705 million (€549 million).
“In 2013, we will remain focused on accelerating the progress at Food Lion, revitalizing Delhaize Belgium and driving growth in south-eastern Europe. We aim to remain relevant to our customers, continuing our sustainable price policies and accelerating revenue growth," said CEO Pierre-Olivier Beckers. (7 March)
© 2013 - ESM: European Supermarket Magazine
