At the end of the first half of 1997, the DELHAIZE 'LE LION' group achieved sales of BEF 228.9 billion,
an increase of 19.6% compared with the same period of 1996. The Group operating under 14 trade names in 5 countries
had 1,815 sales outlets as compared with 1,700 at the end of December 1996. The consolidated cash flow from operations
stood at BEF 13.8 billion, a 23.1% growth. In spite of depreciation and financial charges which increased by 47%, mainly
as the result of the acquisition by Food Lion of the Kash n' Karry supermarket chain, net consolidated profits (Group share)
at the end of the first half of 1997 amounted to BEF 2 billion, similar to those for the same period last year.
At the end of June 1997,
DELHAIZE 'LE LION' S.A. achieved sales
in Belgium (VAT inclusive) of BEF 53.8 billion,
an increase of 2.1% over the first half of 1996. Cash flow from operations was BEF 1.7 billion, a slight decrease from the first
half of 1996. Over the period, the network of sales outlets expanded by 7 affiliates, 4 Di and 6 Tom & Co. During the second half
of the year Delhaize 'Le Lion' plans to open a new supermarket in Sint-Truiden, 6 affiliates, 4 Di and 6 Tom & Co.
Sales of
FOOD LION, Inc. (U.S.A.), Kash n' Karry included, were USD 4.6 billion (BEF 160.1 billion) for
the first half of 1997, an increase of 12%. Same stores sales remained unchanged. The integration of Kash n' Karry is
going forward as planned. Over the same period, cash flow from operations increased by 17% to USD 317.6 million. FOOD LION
ended the first half of 1997 with a net profit, including Kash n' Karry, of USD 95.3 million, an increase of 6.5%. At the
end of the first half year of 1997, FOOD LION was operating 1,200 supermarkets, 92 of which were Kash n' Karry stores.
FOOD LION expects to open 60 new supermarkets and to remodel 100 existing stores during the year 1997.
SUPER DISCOUNT MARKETS, Inc. (U.S.A) achieved sales, in the first half of 1997, of USD 120.1 million
(BEF 4.2 billion) as against USD 128.4 million in 1996. Cash flow from operations stood at USD 2.9 million. The opening
of a fourteenth CUB FOODS giant supermarket is expected during the second half of 1997.
The P.G. Group, Nord - Pas-de-Calais (France) realised first half year sales (VAT inclusive) in 1997 of FRF 1.1 billion
(BEF 6.4 billion), an increase of 6.6%. During this period the P.G. Group opened a thirty-sixth integrated supermarket and
affiliated 4 new 'PG Partners'.
Cash flow from operations grew by 9.6% to FRF 50.5 million.
At the end of June 1997 the P.G. Group recorded a net profit of FRF 18.8 million, an
increase of 14.8% over the first half of 1996.
ALFA-BETA VASSILOPOULOS, Athens (Greece) achieved sales of GRD 50 billion (BEF 6.5 billion), an increase of 12.3%
over the same period last year. ALFA-BETA launched a major campaign to lower prices in the early months of the year, negatively impacting,
in the short run, the gross margin and the results of the first half of the year while progressively boosting sales. Tight control of
expenses made it possible to record GRD 2.1 billion in cash flow from operations, an increase of 2.8% compared with June 1996. Net
pre-tax profits stood at GRD 204.3 million as against GRD 992 million earned over the same period in 1996.
ALFA-BETA opened 4 new supermarkets in the first half year. The opening of 3 further stores is expected in the second half of 1997.
Sales (VAT inclusive) achieved by
DELVITA, Prague (Czech Republic) amounted to CZK 2.7 billion (BEF 3.1 billion), an
increase of 62.9% over the first half of 1996.
At the end of June 1997, Delvita was operating 31 supermarkets. Delvita plans to open 10 supermarkets in 1997.
At the end of the first half of this year, cash flow from operations amounted to CZK 132.1 million, an increase
of 86.4%. In spite of significant depreciation and financial costs arising from its rapid expansion, Delvita expects
to improve its net results over the 1997 financial year.
The Outlook
The
Delhaize 'Le Lion' group will continue its growth during the second half of the year. The Group's trading names will
add more than 70 new sales outlets.
In
Thailand, the Delhaize 'Le Lion' group and its partners, the Mall Group and Saha Group, will open three supermarkets
in Bangkok, trading under the name 'Food Lion'.
In
Indonesia, the Delhaize 'Le Lion' group will cooperate with the Salim Group in remodelling 10 supermarkets
trading under the 'Super Indo' banner (7 in Jakarta, 2 in Bandung and 1 in Surabaya).
The Delhaize 'Le Lion' group and its partners hope to open several dozens sales outlets in these two new growth markets
in the coming years.
The 1997 financial year should end, banning unexpected events or unfavourable fluctuations in currency rates, with an increase in the current consolidated results after booking of important expansion costs.
September 5, 1997
GROWTH IN THE NUMBER OF SALES OUTLETS
|
| |
|
End
1997
Planned |
End
of
1st
half
1997 |
End
1996 |
End
of
1st
half
1996 |
| Belgium |
Delhaize Supermarkets |
112 |
111 |
111 |
110 |
| |
Delhaize Affiliates |
214 |
208 |
201 |
196 |
| |
Di |
100 |
96 |
92 |
86 |
| |
Dial |
49 |
51 |
51 |
52 |
| |
Tom & Co |
35 |
29 |
23 |
22 |
| U.S.A. |
Food Lion + Kash n' Karry |
1,226 |
1,200 |
1,112 |
1,086 |
| |
S.D.M. 'Cub Foods' |
14 |
13 |
13 |
13 |
| Czech Rep. |
Delvita |
40 |
31 |
30 |
23 |
| Greece |
Alfa-Beta |
32 |
29 |
25 |
22 |
| France |
P.G. |
36 |
36 |
35 |
34 |
| |
P.G. Partenaires |
16 |
11 |
7 |
4 |
| Thailand |
Food Lion |
3 |
- |
- |
- |
| Indonsia |
Super Indo |
10 |
- |
- |
- |
| GROUP TOTAL |
1,887 |
1,815 |
1,700 |
1,648 |
| EVOLUTION OF SALES |
(in millions) |
1st half
1997 |
1st half
1996 |
1997/1996 |
| Sales |
consolidated |
BEF |
228,908 |
191,354 |
+ 19.6 % (1)
|
| |
Delhaize 'Le Lion'(2) |
BEF |
53,789 |
52,677 |
+ 2.1 % |
| |
Food Lion |
USD |
4,601 |
4,109 |
+ 12.0 % |
| |
SDM |
USD |
120 |
128 |
- 6.5 % |
| |
P.G. (2) |
FRF |
1,052 |
987 |
+ 6.6 % |
| |
Alfa-Beta |
GRD |
49,988 |
44,508 |
+ 12.3 % |
| |
Delvita (2) |
CZK |
2,675 |
1,642 |
+ 62.9 % |
| (1)+10.01% at comparable exchange rates. |
(2)VAT inclusive |
(unaudited) |
GROWTH OF CONSOLIDATED GROUP RESULTS
(in millions of BEF) |
1st half
1997 |
1st half
1996 |
1997/1996 |
| Sales |
228,908 |
191,354 |
+ 19,6 % |
| Cash flow from operations |
13,848 |
11,250 |
+ 23.1 % |
| Depreciation |
(4,810) |
(3,498) |
+ 37.5 % |
| Depreciation of goodwill |
(211) |
(54) |
+ 289.2 % |
| Operating results |
8,827 |
7,698 |
+ 14.7 % |
| Net financial (expense) |
(2,503) |
(1,568) |
+ 61.5 % |
| Pre-tax profit |
6,324 |
6,130 |
+ 3.2 % |
| Tax |
(2,486) |
(2,389) |
+ 4.1 % |
| Consolidated profit |
3,838 |
3,741 |
+ 2.6 % |
| Minority interest |
(1,859) |
(1,767) |
+ 5.2 % |
| Consolidated net profit (Group share) |
1,979 |
1,974 |
+ 0.3 % |
| (unaudited) |