BELGIUM: Delhaize reports solid Q3 growth and says Ahold merger “on track” | Progresiv

Delhaize has reported solid sales and profit growth for its fiscal third quarter, helped by improved results in its home market. The group also said its merger plans with Ahold are proceeding well, and expects to complete the same by mid-2016. 

For the quarter, sales were up 2.3% to 6.14 billion euros on a constant-currency basis (+14.5% reported), with net profit up 2.2% to 113 million euros (-13.8% reported), and underlying operating profit up 12.5% to 218 million euros (-1.7% reported).

Sales in the US were up 0.1% in dollar terms, with like-for-like sales up 1.7%. Delhaize said the results were driven by volume growth at its Food Lion banner. Sales in Belgium were up 2.2%, on LFL growth of 1.7%. And finally, sales in Southeastern Europe were up 11.9% on a constant-currency basis, with LFL sales up 5.1%. 

The group said it continues to proceed with its ‘Easy, Fresh & Affordable’ revamp at the Food Lion banner in the US, and has begun rolling out a new store organisation in Belgium, which will be implemented in 53 stores by mid-November. 

CEO Frans Muller noted: “We are looking forward to the important fourth quarter of the year and we are confident that we will deliver results and free cash flow in line with expectations. At the same time, we continue to make progress with the proposed merger with Ahold and we are on track to complete the transaction by mid-2016.” (www.kamcity.com)