Source: Delhaize Group
March 11 2010
DELHAIZE GROUP EXCEEDS 2009 GUIDANCE WITH OPERATING PROFIT GROWTH OF 4.6%*
Financial Highlights 2009 (at identical exchange rates)
» Revenue growth of 2.6% (excluding the 53rd week in 2008)
» Comparable store sales evolution of -0.4% in the U.S. and 2.7% in Belgium
» Adjusted operating profit growth of 4.6%*, above our 1% - 4% guidance range
» Objectives of EUR 100 million cost and EUR 50 million working capital improvements achieved
» Excellent full year free cash flow generation of EUR 511 million
Financial Highlights Fourth Quarter 2009 (at identical exchange rates)
» Revenue growth of 1.5% (excluding the 53rd week in 2008)
» Comparable store sales evolution of -2.8% in the U.S. and 2.6% in Belgium, with better volume trends compared to last year in a highly deflationary U.S. environment
» Solid underlying operating margin of 5.4%*
Other Highlights
» Proposal to increase net dividend by 8.1% to EUR 1.2 per share
» Reached the 90% share ownership threshold in Alfa Beta
» 2010 guidance: expected operating profit growth between 7% and 10%
CEO Comments
Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group, commented: “In 2009,Delhaize Group has again shown resilience in a very challenging economic environment. We have improved our volume trends, exceeded our upgraded earnings guidance and delivered on our goal to generate EUR 100 million in cost improvements and EUR 50 million in working capital improvements.”
“In the U.S., our operating companies experienced a marked improvement of the volume trends as a result of targeted price investments and adapted assortments, in part financed by better inventory management results and a more favorable product mix. Delhaize Belgium had a very strong year, with solid market share growth combined with great execution and better inventory control.”
“From the beginning of 2010 we have started to execute our New Game Plan, which is our strategic plan focused on accelerated growth, increased efficiencies and stronger intra-Group integration. The new organizational structure in the U.S., announced on January 14, 2010, has been in place since early February. All of our operating companies have started to fine-tune their pricing strategies to achieve local value leadership, and we are gearing up for many other projects, including achieving EUR 300 million of annual operating cost savings by 2012. We are ready for the challenges of 2010.”