BELGIUM: Delhaize earnings hit by struggling Belgian business | Progresiv

Belgian supermarket group Delhaize reported lower-than-expected operating profits in the first quarter on as it invested to regain customers in its struggling Belgian business. Operating profit, excluding one-offs such as store closures and reorganization, fell 11.2 percent in the first quarter, at comparable exchange rates, to 173 million euros, below the 180 million expected in a Reuters poll of five analysts.

In Belgium, where Delhaize faced some tough quarters because of heavy competition and industrial action, sales at stores open for at least a year fell 2.8 percent in the first quarter. However profit margins in Belgium halved to 1.4 percent in the first quarter of 2015 from 3.1 percent in the same period last year.

Delhaize added that it had seen an improvement in the Belgian market trends towards the end of the quarter and it expected profits and sales to grow again in the second half of the year.

Delhaize, which makes the majority of its revenues in the United States, said comparable sales there were up 2.5 percent with stable operating margins. (www.uk.reuters.com)