Delhaize has announced second quarter (Q2) 2014 and first half (H1) 2014 results for the period ended 30 June 2014.

First Quarter Results:

Delhaize Group:

  • Q2 2014 sales increased 3.7% and reached EUR 5.27 billion, compared to Q2 2013.
  • Operating profit of the group decreased 84.3% to EUR 29 million.
  • At the end of Q2 2014 the retailer operated a total of 3,377 stores, 157 less compared to the end of 2013.

Delhaize United States:

  • Q2 2014 sales increased 4.7% year-over-year (y-o-y) to EUR 3.2 billion.
  • Comparable store sales increased 4.1% including a negative calendar effect of 0.8%.
  • Delhaize will launch “Easy, Fresh & Affordable” strategy in 77 Food Lion stores in August and September 2014.
  • At the end of Q2 2014, the retailer operated 1,364 stores, a decrease of 117 stores compared to Q1 2014. Delhaize sold to Bi-Lo Holdings 154 Sweetbay, Harveys & Reid’s stores. 

Delhaize Belgium:

  • Q2 2014 sales were similar to Q2 2013, reaching EUR 1.3 billion.
  • Comparable store sales decreased 1.2% including a positive calendar impact of 0.5%.
  • At the end of Q2 2014, the retailer operated 860 stores, 8 stores more than at the end of 2013.
  • Comparable store sales growth was negatively impacted by the announcement of the “Transformation Plan”.

Delhaize Southeastern Europe:

  • The division is made up of Delhaize’s operations in Romania, Greece, and Serbia, Bosnia and Indonesia.
  • Q2 2014 sales increased 4.4% y-o-y to EUR 0.768 billion, growth driven by the expansion of Alfa Beta (Greece) and Mega Image (Romania) banners.
  • Comparable store sales increased in Greece and were negative in Serbia. However, Delhaize continue to gain market share in all three East European countries.
  • The divestment of the 54 stores in Bulgaria was completed on 10th June 2014.
  • In Indonesia, the retailer operates 118 stores, one more comparing to the end of 2013.

 

First Half (H1) 2014 Results:

Delhaize Group:

  • H1 2014 sales increased 0.4% and reached EUR 10.39 billion.
  • Comparable store sales growth was 3.2%

Delhaize United States:

  • H1 2014 sales increased 4.4% year-over-year (y-o-y) to EUR 8.8 billion.
  • Comparable store sales growth was 4%.
  • Operating profit decreased 4.3% to EUR 231 million.

Delhaize Belgium:

  • H1 2014 sales decreased 0.4% reaching EUR 2.4 billion.
  • Comparable store sales decreased 1%.
  • Operating profit decreased 29% to reach EUR 78 million.

Delhaize Southeastern Europe:

  • H1 2014 sales increased 3.3% y-o-y to EUR 1.49 billion.
  • Operating profit decreased 8.7%, reaching EUR 44 million.

Outlook for 2014

  • CAPEX of EUR 625 million,
  • Plan to open 180 new stores.
  • Plan to refurbish Belgian supermarkets and adapt them to the latest concept.
  • Increase the level of free cash-flow.
  • Testing “Easy, Fresh & Affordable” strategy in 77 stores from United States and implementation of “Transformation Plan” in Belgium.