The Delhaize 'Le Lion' Group continued its growth in 1996
- Consolidated sales : BEF 412.3 billion, + 11.9%
- Consolidated cash flow from operations : BEF 24.3 billion, + 19.9%
- Net Profits of consolidated companies : BEF 8.2 billion, + 20.1%
- Consolidated net profits (Group's share) : BEF 4.4 billion, + 15.6%
- Shareholders' equity : BEF 28.2 billion, + 17.6%
At the end of 1996 the Delhaize 'Le Lion' Group operated 1,700 sales outlets in 5 countries. 124 new stores were opened during the financial year.
94,700 staff members in the United States and in Europe, of which 12,900 in Belgium, contributed to the success of the Group's 13 trade names.
In Belgium, Delhaize 'Le Lion' had sales (including VAT) of BEF 107 billion, an increase of 3.4% compared with the previous financial year. A new supermarket
opened at the end of 1996 in Antwerp and 6 new A.D. Delhaize, 8 Superette units and 8 Tom & Co were added to the networks of affiliates. The chain of Di Super Drugstore and Beauty now has 92
sales outlets, 12 more than at the end of 1995. Despite stagnant consumption and increased competition, the Belgian Delhaize 'Le Lion' chains again increased their market
share of total food sales in Belgium to 13.2% at the end of 1996, against 13% at the end of 1995.
Delhaize 'Le Lion' ended the financial year with a cash flow from operations of BEF 3.8 billion compared with BEF 3.6 billion in 1995, an increase of 5.4%. Profits
before investment income were BEF 774 million against BEF 738 million at the end of 1995. Thanks to strong growth in income from investments, net profits for the financial year increased
by 21.1% over the previous year, standing at BEF 1,929 million compared with BEF 1,593 million at the end of 1995.
| Delhaize 'Le Lion' |
1996 |
1995 |
+/- |
| Stores | 478 | 450 | +28 |
| Sales (1) (incl V.A.T.) | 106,970.- | 103,458.- | +
3.4% |
| Cash flow from operations
(1) | 3,802.- | 3,606.- | +5.4% |
| Net profit before income from invest.
(1) | 774.- | 738.- | + 4.9% |
| Net profit (1) | 1,929.- | 1,593.- | + 21.1% |
| (1) in millions of BEF |
In the United States, Food Lion ended the financial year with sales of USD 9 billion (BEF 278.9 billion), an increase of 9.7%. Sales of comparable stores showed a growth of 5.7%. At the end of 1996 Food Lion operated 1,112
supermarkets. The figures do not include those for the 100 Kash n' Karry supermarkets, mostly located in the Tampa (Florida) market. Their acquisition by Food Lion became effective on 18 December 1996.
They will be consolidated into the operating accounts from the 1997 financial year. Food Lion ended the year with an increase of 18% in cash flow from operations to USD 593.2 million.
Net profits were USD 206.1 million (BEF 6.4 billion) increasing by 19.6%. These good results were achieved thanks to the Food Lion's 73,170 staff members. Food Lion's growth in 1996 was focused on three main areas: internal expansion, with the construction of 55 new
supermarkets, the modernisation and enlargement of 120 existing stores and the acquisition of the 'Kash n' Karry' chain.
| Food Lion | 1996 | 1995 | +/- |
| Supermarkets | 1,112 | 1,073 | +39 |
| Sales (1) | 9,005.9 | 8,210.9 | + 9.7% |
| Cash flow from operations (1) | 593.2 | 502.7 | +
18.-% |
| Net profit (1) | 206.1 | 172.4 | + 19.6% |
| (1) In millions of USD |
Super Discount Markets, U.S.A., ended the year with profits of USD 250,175 (BEF 7.7 million). The 13 stores trading under the name of 'Cub Foods' in a particularly competitive market, Atlanta (Georgia) achieved sales of USD 274.8 million (BEF 8.5 billion). Super Discount Markets had a cash flow from operations of USD 6.8 million.
| Super Discount Markets | 1996 | 1995 | +/- |
| Supermarkets | 13 | 13 | - |
| Sales (1) | 274.8 | 292.6 | - 6.1% |
| Cash flow from operations(1) | 6.8 | 7.4 | -8.2% |
| Net profit (2) | 250.2 | 401.- | -37.6% |
(1) In millions of USD
(2) In thousands of USD |
In France, the P.G. Group opened 3 new supermarkets in 1996 and affiliated 7 'P.G. Partenaires', bringing the total number of sales outlets to 42. The P.G. Group has shown a growth in sales (including VAT) of 6.3% to FRF 2,082.4 million (BEF 12.6 billion) as compared with FRF 1,958.4 million in 1995. Cash flow from operations increased by 4.9% to FRF 94.4 million. Net profit stood at FRF 33.7 million (BEF 203.9 million), a slight decrease over last year's figure. This is the result of the payment of non-recurring indemnity of FRF 6.2 million for the early repayment of a number of long-term loans which were replaced by more favourable ones.
| P.G. GROUP | 1996 | 1995 | +/- |
| Supermarkets | 42 (1) | 33 | + 9 |
| Sales (Including V.A.T.) (2) | 2,082.4 | 1,958.4 | +6.3% |
| Cash flow from operations (2) | 94.4 | 90.- | +4.9% |
| Net profit (2) | 33.7 | 34.7 | - 3.1% |
(1) Including 7 P.G Partenaires
(2) In millions of FRF |
In Greece, Alfa Beta opened 4 new supermarkets in 1996 and modernised and enlarged 3 others. The new distribution centre went into operation. Alfa Beta achieved sales (including VAT) of GRD 95.3 billion (BEF 12.3 billion), an increase of 16.8%. Cash flow from operations stood at GRD 5.2 billion which represents an increase of 27.5%. The financial year ended with a net profit of GRD 1 billion (BEF 131.2 million).
| Alfa-Beta | 1996 | 1995 | +/- |
| Supermarkets | 25 | 21 | + 4 |
| Sales (including V.A.T.) (1) | 95.3 | 81.6 | +16.8% |
| Cash flow from operations (1) | 5.2 | 4.1 | +27.5% |
| Net profit (1) | 1.- | 0.9 | + 6.9% |
| (1) In billions of GRD |
In the Czech Republic, Delvita opened 10 new supermarkets during the financial year. This brings the number of stores in operation to 30. Delvita achieved sales (including VAT) of CZK 3.7 billion (BEF 4.2 billion), an increase of 55%. A state-of-the-art distribution centre was opened in 1996 to support this rapid growth. Cash flow from operations stood at CZK 170.1 million (BEF 194.5 million), an increase of 87.4%. Net results met expectations and taking into account the expansion related charges due to the rapid growth of the company.
| Delvita | 1996 | 1995 | +/- |
| Supermarkets | 30 | 20 | + 10 |
| Sales (including V.A.T.) (1) | 3,704.- | 2,384.- | +55.-% |
| Cash flow from operations (1) | 170.1 | 90.8 | +87.4% |
| Net results (1) | (12.5) | (11.5) | - 8.3% |
| (1) In millions of CZK |
Growth of consolidated profit
Evolution of the number of stores
The growth of the Delhaize 'Le Lion' Group continued in all of its markets. The net number of sales outlets increased by 90 units during the financial year, excluding the acquisition by Food Lion of the 100 Kash n' Karry supermarkets. This brought the total number of stores to 1,700 at the end of 1996 against 1,610 at the end of 1995.
Evolution of consolidated sales (in billions of BEF - excluding VAT)
The Group's consolidated sales reached the figure of BEF 412.3 billion, an increase of 11.9%. At comparable exchange rates, the increase in sales would have been 8%.
Evolution of consolidated cash flow from operations (in billions of BEF)
Consolidated cash flow from operations reached a total of BEF 24.3 billion, compared with BEF 20.3 billion in 1995, an increase of 19.9%. After depreciation of BEF 7.6 billion, an increase of 15.7%, operating profits were BEF 16.7 billion compared with BEF 13.7 billion in 1995, an increase of 21.9%. Taxes paid by the various companies in the Group amounted to BEF 5.2 billion. Profits of consolidated companies totalled BEF 8.2 billion against BEF 6.8 billion in 1995, an increase of 20%.
Evolution of consolidated net (current) profit (Group's share) (in billions of BEF)
The Group's share of the net profits totalled BEF 4.4 billion against BEF 3.8 billion in 1995, an increase of 15.6%. At comparable rates of exchange, the increase would have been 11.7%.
Adjusted net dividend growth (in BEF)
The Board of Directors will propose to the General Meeting the distribution of a dividend of BEF 27 net of taxes, an increase of 8%.
Outlook for 1997 : continued growth
In 1997 113 new sales outlets will be opened. This together with the takeover of the 100 Kash n' Karry supermarkets acquired at the end of 1996 by Food Lion enables the Delhaize 'Le Lion' Group to look forward to continued growth in sales and profits.
In Belgium Delhaize 'Le Lion' will begin the construction of two new supermarkets, one in Sint-Truiden, the other in Brussels. The affiliated network is planning to open 10 new outlets of which 5 AD Delhaize. Tom & Co will open 12 stores. Di has a programme to open 8 more stores.
In the United States, Food Lion plans to open 55 new supermarkets and modernise about 100 existing stores. Kash n' Karry's results will be taken into consolidation for the first time in 1997. The trade name will benefit from the synergy contributed by Food Lion.
Super Discount Markets plans to open a fourteenth giant supermarket in the Atlanta market.
In France, despite the freeze on new commercial locations the P.G. Group plans to open one supermarket and continue its growth by taking on 9 additional P.G. Partenaires affiliates.
In Greece, Alfa Beta will continue to grow, opening 7 new supermarkets and completing the distribution centre.
In the Czech Republic, Delvita will keep up its pace of 10 new outlets in 1997.
The Delhaize 'Le Lion' Group has budgeted BEF 14 billion for investments in 1997.
The Delhaize 'Le Lion' Group's is pursuing surveys for an expansion in Asia.
These should lead to the signing of a partnership agreement by the end of the financial year. The Group has available the necessary financial resources for this new development. Moreover it will continue its growth in Europe as well as in the U.S.A.
Notes:
- Evolution of the consolidated group results
- Contribution of the group companies in the consolidated results
Evolution of the Consolidated Group Results