Delhaize's Q2 results, driven by positive performance in Southeastern Europe and US | Progresiv

Belgium-based Delhaize has pre-released its second quarter results, ahead of its merger with Netherlands-based Ahold. The unaudited second quarter results underline the retailer’s continued strong growth at a corporate level, driven by a positive performance in the US and in its Southeastern Europe division. In the second quarter total revenues rose 2.8% to 6.29 billion euros and by 4.3% at identical exchange rates.

The retailer said that in the US, revenues rose by 2.9% in local currency terms, driven by comparable store sales growth of 2.9%, which was aided by ‘continued positive real growth at both Food Lion and Hannaford’, albeit with this offset by deflation of 1.0%. In its home market, Delhaize said total revenues increased by 2.6%, aided by comparable store sales growth of 2.1% and store openings. In contrast to the US, inflation remained a key driver of overall performance in Belgium, with retail inflation of 2.1%. Delhaize said its ‘market share continued to recover from the disruptions faced during the Transformation Plan’ but that‘top-line performance in… company-operated stores remained below… expectations’.

Revenue growth in Delhaize’s Southeastern Europe division remained dynamic, advancing by 14.2% at identical exchange rates, with comparable store sales growth of 8.7% and a continued store expansion programme helping to drive performance. The retailer said that comparable sales growth and total sales growth ’continued to be particularly strong in Romania and in Greece’, but that deflation had begun to affect the operations, reaching 1.1%, mainly driven by Greece. (www.igd.com)