1995: Further Growth of the Group in its 5 Markets

The 1995 financial year has again been a year of progress for the Delhaize 'Le Lion' group.

In its 5 markets and in local currencies, the Delhaize 'Le Lion' group has reached new levels of both sales and net operating profits.

88 new stores have been opened during the financial year, taking the total to 1,610 sales outlets under 13 trade names in 5 countries. 89,700 members of staff - 5,700 more than in 1994 - have contributed to this success.

In Belgium, Delhaize 'Le Lion' had a turnover (including V.A.T.) of BEF 103.5 billion, an increase of 4.9% compared with the previous financial year.
77% of its sales were realised by the 110 Delhaize 'Le Lion' supermarkets, up by 2.9% compared with 1994. During the financial year, the network of affiliates under the trade names of A.D. Delhaize and Superettes Delhaize increased by 8 new units, taking their number to 193 shops. 1 Dial store has been relocated in the Gent area. the chain of Di Super Drugstore and Beauty, at the end of 1995, had 80 sales outlets as against 70 a year earlier, an increase of 10 stores. there were 7 new openings for the TOM & Co chain, specialising in pet food.
Delhaize 'Le Lion' market share has increased thanks to its commercial dynamism. Despite strong pressure on sales prices, the company has been able to maintain a satisfactory level of gross margin.

In a particularly difficult economic climate for the consumption, Delhaize 'Le Lion' has maintained its operating profit close to the all time record achieved in 1994. Including higher income from investments, the net profit for the financial year has increased by 7.1%.

Delhaize 'Le Lion'	1995	1994	+/-
Stores	450	425	+25
Turnover (*) (incl V.A.T.)	103.5	98.6	+ 4.9%
Cash flow from operations (*)	3.6	3.6	-
Net results (*)	1.6	1.5	+ 7.1%
(*) in billions of BEF

In the U.S.A., Food Lion has reached a new record level of sales of USD 8.2 billion (BEF 242 billion), an increase of 3.5% on the previous financial year. At the end of 1995, Food Lion was operating in 14 states, 1,073 supermarkets against 1,039 at the end of 1994, an increase of 34 units. During the financial year, Food Lion opened 47 new supermarkets, of which 12 were relocations. three supermarkets with larger sales areas (4000 m2) were opened in North Carolina and Virginia. this new concept has been particularly welcomed by the customers. In parallel with its expansion, Food Lion has pursued its dynamic plan of renovation: 121 existing supermarkets have been modernised and most of them have been enlarged. Food Lion has achieved a cash flow from operations of USD 502.7 million, an increase of 4.9%.
With a growth of 12.7%, the net profit of USD 172,4 million (BEF 5.1 billion) represents a margin on turnover of 2.1%, one of the highest performances among the major supermarket chains in the United States. the shareholders' equity has increased by 7.3% to USD 1,1 billion.

In 1995, considering the share price to be of particularly good value given the potential growth of the business, Food Lion, using its cash surplus, bought back 8,587,115 of its own shares on the stock market at a price of USD 50,950,479. the shareholding of the Delhaize 'Le Lion' group has accordingly increased from 44.19% at the end of 1994 to 44.98% at the end of 1995.

Food Lion	1995	1994	+/-
Supermarkets	1,073	1,039	+34
Turnover (*)	8,211	7,933	+ 3.5%
Cash flow from operations (*)	503	479	+ 4.9%
Net profit (*)	172	153	+ 12.7%
(*) In millions of USD

In the United States, Super Discount Markets operates 13 giant supermarkets in Atlanta, a major urban centre in south-eastern U.S.A. the number of supermarkets opened in the last few years by main American retail chains has outstripped the demographic growth of the region.
the turnover achieved by the 13 'Cub Foods' supermarkets amounts to USD 293 million (BEF 8.6 billion). Super Discount Markets has generated cash flow from operations of USD 7.4 million, a rise of 20.2% on the previous financial year, underlining the continued push towards its profitability objectives. 1995 ended with a profit of USD 401,000 (BEF 11.8 million) as against a loss of USD 736,000 in 1994.

Super Discount Markets	1995	1994	+/-
Supermarkets	13	13	-
Turnover (1)	293	298	- 1.8%
Cash flow from operations (1)	7.4	6.1	+ 20.2%
Net profit (2)	401	(736)	-
(1) In millions of USD (2) In thousands of USD

In France, P.G. operates 33 supermarkets in the Nord-Pas-de-Calais region which in 1995, achieved a turnover (V.A.T. included) of FRF 2 billion (BEF 11.6 billion), an increase of 8.5 % on the previous year. three new supermarkets were opened during the financial year.

Backed up by the experience of and in complete synergy with Delhaize 'Le Lion', P.G. has successfully introduced the 'P.G. Plus' loyalty card. Under a new trade name 'P.G. Partenaires', P.G. has opened a first affiliated supermarket, run by an independent shopkeeper. the cash flow from operations of P.G. group totalled FRF 90 million against FRF 76.8 million in 1994, an increase of 17.2%.

Net Profit was FRF 34.7 million (BEF 205.3 million), an increase of 25% on the preceding financial year. Based on agreements with former shareholders, the Delhaize 'Le Lion' group has increased its shareholding in the P.G. group from 73.8% to 85.81%.

P.G.	1995	1994	+/-
Supermarkets	33	30	+ 3
Turnover (Incl, V.A.T.) (1)	2	1.8	+ 8.5%
Cash flow from operations (2)	90	76.8	+ 17.2%
Net profit (2)	34.7	27.8	+ 25%
(1) in billions of FRF (2) in millions of FRF

In Greece, Alfa-Beta had a turnover (V.A.T. included) of GRD 81.6 billion (BEF 10.4 billion), a growth of 25.4% in comparison to 1994. During the financial year, Alfa-Beta has continued its development, through the opening of 4 new sales outlets and the modernisation of 3 existing supermarkets. this enabled Alfa-Beta to enlarge its total sales area by 35.5% in 1995. Alfa-Beta has realised a cash flow on operations of GRD 4.1 billion as against GRD 2.7 billion in 1994, an increase of 49.3%. the substantial increase in depreciation and the write- off of considerable investment in start-up costs, mainly linked to the acquisition of a site for the building of the future warehouse, have influenced the net result which ended with a profit of GRD 954.4 million (BEF 121.4 million) as against GRD 1,223.4 million at the end of 1994.
With the purchase of 46,400 shares on the Athens Stock Exchange, the shareholding of the Delhaize 'Le Lion' Group has increased from 49.94% to 50.65%.

Alfa-Beta	1995	1994	+/-
Supermarkets	21	19	+ 2
Turnover (Incl V.A.T.) (1)	81.6	65	+ 25.4%
Cash flow from operations (1)	4.1	2.7	+ 49.3%
Net profit (2)	954	1,223	- 22%
(1) In billions of GRD (2) In millions of GRD

In the Czech Republic, Delvita had a turnover (V.A.T. included) of CZK 2.4 billion (BEF 2.6 billion), an increase of 53.4% on the preceding financial year. Eight new supermarkets were opened. At the end of 1995, Delvita operated 20 supermarkets spread over several large cities. this rapid growth enabled Delvita to increase its cash flow from operations by more than 40%, to CZK 90.8 million, as against CZK 64 million in 1994. the full depreciation of start-up costs of the sales outlets opened during the financial year affected the profits, which closed with a loss of CZK 11.5 million (BEF 12.7 million), as against a loss of CZK 22.2 million at the end of 1994.

Delvita	1995	1994	+/-
Supermarkets	20	12	+ 8
Turnover (incl V.A.T.) (1)	2.4	1.6	+ 53.4%
Cash flow from operations (1)	90.8	64	+ 41.9%
Net profit (2)	(11.5)	(22.2)	-
(1) in billions of CZK (2) in millions of CZK

Consolidated Profit-Dividend: BEF 25 (+8.7%) the growing geographical diversification of Delhaize 'Le Lion' did not protect the company from suffering in its consolidated accounts the effects of currency fluctuations due to the weakness of the U.S. dollar and the strength of the Belgian franc in 1995. the Group as a whole has gained an important increase in sales. the 11.8 % decrease in the exchange rate of the US dollar has severely affected the consolidated accounts as expressed in Belgian francs. the consolidated turnover for 1995 totalled BEF 368.5 billion as against BEF 380.8 billion in 1994, a difference of - 3.2%. At the same rates of exchange as those used for the 1994 consolidated accounts, the turnover would have been BEF 403 billion, an increase of 5.9%.

Evolution of consolidated sales

In local currency all of the Group's subsidiaries have reported increased operating profits over the previous year. the Delhaize 'Le Lion' group closed the 1995 financial year with a consolidated net profit (group share) of BEF 3.8 billion.

At the same rates of exchange as those used for the 1994 consolidated accounts, this profit would have been BEF 4.1 billion, an increase of 1.8%. the results of the operating companies have improved. On the other hand, the results of the financial companies have been affected by the cumulative effect of the investment policy in the European operating subsidiaries and the decrease in interest rates.

Besides, the consolidated results are influenced by the non-cash depreciation of the acquisition premiums for BEF 107.9 million.


Evolution of the consolidated net (current) profit

In respect of the dividend policy, which puts the accent on a gradual rise in dividends, a net dividend of BEF 25 after withholding tax will be proposed to the Annual General Meeting on May 23, 1996. this represents an increase of 8.7%

this increase in dividends nevertheless allows the Group to increase its reserves by BEF 2 billion, thus giving the Group the means to fund its growth.

Gowth of adjusted net dividend

Outlook for 1996: the pursuit of growth the opening of more than 100 new sales outlets and its commercial dynamism enable the Delhaize 'Le Lion' group to anticipate for 1996 a new surge in its turnover and profits.

In Belgium, the 111th Delhaize 'Le Lion' supermarket will open its doors in Antwerp in the final quarter of the year. 12 new openings are planned under the A.D. Delhaize and Superettes Delhaize names. The Di and TOM & Co chains will each open 10 new sales outlets.

In the U.S.A., Food Lion will open 50 new supermarkets and 120 existing supermarkets will be modernised and enlarged. During the month of March 1996, Food Lion has acquired 11 supermarkets operating in North Carolina under the name Food Fair.

In Europe, P.G. in France announces the opening of 4 supermarkets and the affiliation of several 'P.G. Partenaires'.

In Greece, Alfa-Beta is preparing for the opening of 6 new supermarkets and a distribution centre.

Delvita will pursue its expansion in the Czech Republic with the opening of 10 additional supermarkets and a distribution centre.

In 1996, the Group will invest more than BEF 11 billion, a source of growth and increase of the profit.

THE DELHAIZE 'LE LION' GROUP WILL CONSIST OF MORE THAN 2000 STORES IN THE YEAR 2000

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