In 1998 the DELHAIZE 'THE LION' GROUP achieved sales (taxes excluded) of BEF 520.8 billion (EUR 12.9 billion), an increase of 2.4 % compared to 1997. Adjusted for non-recurring events like the closure of the 61 Food Lion stores in Texas in the last quarter of 1997, sales rose by 8.5 %. Continuous growth was recorded in all markets.
At the end of 1998 the DELHAIZE 'THE LION' GROUP was operating a total of 1,904 outlets, a net increase of 88 stores in 1998. With the opening of a supermarket in Bratislava (Slovak Republic), the DELHAIZE 'THE LION' GROUP is now present in eight countries.
For the financial year 1998, the DELHAIZE 'THE LION' GROUP forecasts a significant increase of the consolidated current profits and a cash flow showing a noticeable increase over the previous financial year, which should result in an increase of the dividend.
In the United States, FOOD LION, Inc. achieved in 1998 sales of USD 10.2 billion (BEF 371 billion or EUR 9.2 billion), an increase of 0.2 %. As a result of the aggressive commercial policy, sales grew by 6.1 %, adjusted for the closure of the 61 stores in Texas in the fourth quarter of 1997, the additional trading week in 1997 and the change from May 1998 on in calculation of the sales tax. Sales of comparable stores rose by 2.6 %. FOOD LION was operating 1,207 supermarkets at the end of 1998. During the financial year 1998, FOOD LION opened 79 stores and relocated or closed 29 stores. The net increase in stores amounted to 50 outlets. 141 stores were modernised and enlarged. The expansion of FOOD LION will continue in 1999 with the opening of 80 new supermarkets. 35 stores will be relocated or closed, giving a total of 1,252 stores, a net increase of 45 outlets. 140 existing stores will be renovated and enlarged. The sales area will grow by 7 % and the sales of comparable stores should increase by 1.5 to 2 %. FOOD LION plans capital expenditure of USD 390 million (EUR 333 million) in 1999.
In Atlanta, in 1998 SUPER DISCOUNT MARKETS, Inc. (U.S.A.) increased its sales by 8.9 % to USD 287.3 million (BEF 10.4 billion or EUR 258.6 million). 4 supermarkets were taken over from a competitor and turned into Cub Foods supermarkets, bringing the number of Cub Foods stores to 18.
In Belgium, DELHAIZE 'LE LION' S.A. achieved sales (including VAT) of BEF 117 billion (EUR 2.9 billion) in 1998. This increase of 5.2 % is due to the dynamic commercial policy, the opening of new stores and the upturn in consumer spending in Belgium. During the course of the financial year, the company opened 2 supermarkets, 16 AD Delhaize, 4 Superettes, 8 Delhaize2, 7 Di and 13 Tom & Co. 9 supermarkets were modernised and enlarged. 1 supermarket and the 45 Dial stores were closed. In 1999, DELHAIZE 'LE LION' plans to open 2 new supermarkets, 20 AD Delhaize or Superette, 2 Delhaize2, 10 Di and 20 Tom & Co. The renovation of existing supermarkets will be continued. DELHAIZE 'LE LION' plans capital expenditure of BEF 2.4 billion (EUR 59.5 million) in Belgium.
In France, the P.G. GROUP achieved sales (including VAT) of FRF 2.2 billion (BEF 13.4 billion or EUR 332.1 million). At the end of 1998, the P.G. GROUP was operating 37 supermarkets and 9 'Marché Plus' affiliates. The transformation of P.G. supermarkets into 'Stoc' and the P.G. Partenaire affiliates into 'Marché Plus', the trade names of the Comptoirs Modernes group, was successfully completed in November 1998. In 1999, 1 supermarket and 5 affiliates will be opened and 9 outlets will be modernised and enlarged.
In Greece, sales (including VAT) of ALFA-BETA VASSILOPOULOS rose to GRD 135.9 billion (BEF 16.7 billion or EUR 414.2 million). Thanks to the 21.9 % increase in sales, ALFA-BETA became the third food retailer in Greece. The supermarket network was strengthened by 11 stores. For 1999, the opening of at least 10 new supermarkets is planned. At least 4 will be located in Thessaloniki, in the North of Greece, a new market for ALFA-BETA.
In the Czech and Slovak Republic, DELVITA increased its sales (including VAT) by 44.8 % to CZK 8.8 billion (BEF 9.9 billion or EUR 245.6 million) in 1998. 16 new supermarkets were opened during the financial year, of which one was the first to be opened in the Slovak Republic. At the end of 1998, DELVITA was operating 59 sales outlets. In November of the same year, a second distribution centre was opened in the East of the Czech Republic. In 1999 DELVITA plans to open 10 new supermarkets.
Sales of BEL-THAI SUPERMARKET Co. Ltd. (Thailand) grew strongly in 1998. At the end of 1998 BEL-THAI SUPERMARKET was operating 5 supermarkets under the 'Food Lion' trade name, 3 more then the previous year. A network increase with 8 sales outlets to a total of 13 is planned for 1999.
Sales of LION SUPER INDO (Indonesia) increased sharply in 1998. At the end of 1998, LION SUPER INDO counted 12 supermarkets, and in 1999 it plans to open 7 new supermarkets. In December 1998, following a change in Indonesian law, the DELHAIZE 'THE LION' GROUP converted a convertible bond into a 51 % shareholding in LION SUPER INDO, which will be fully consolidated within the accounts of the DELHAIZE 'THE LION' GROUP as from 1998. The financial and economic circumstances in South-East-Asia provide the DELHAIZE 'THE LION' GROUP with interesting expansion opportunities.
Outlook
For the DELHAIZE 'THE LION' GROUP, 1999 will be another year of growth. The threshold of 2,000 stores will be crossed, with a net increase of 140 sales outlets during the course of 1999 to a total of 2,044 units. For 1999, the DELHAIZE 'THE LION' GROUP plans capital expenditure totalling BEF 20 billion (EUR 496 million).
Euro
The introduction of the Euro at the beginning of 1999 proceeded as planned in the DELHAIZE 'THE LION' GROUP. Over the period from 1998 to 2002 the average yearly non-recurring expense for DELHAIZE 'LE LION' S.A. of the introduction of the Euro is estimated at BEF 50 million (EUR 1.2 million), or a total of BEF 250 million (EUR 6.2 million).
Board of Directors
Messrs Frans VREYS and Gui de VAUCLEROY reach the retirement age for the function of Chairman of the Board of Directors and Chief Executive Officer respectively. From January 1, 1999 on, Mr Pierre-Olivier BECKERS is appointed as Chief Executive Officer and President of the Executive Committee of the DELHAIZE 'THE LION' GROUP. From January 1, 1999 on, Mr Gui de VAUCERLOY is appointed Chairman of the Board of Directors of the DELHAIZE 'THE LION' GROUP. Mr Frans VREYS remains Director of the company.
| SALES(in millions) |
1997 |
1998 |
97/98 |
| Food Lion |
USD 10.194 |
EUR 9.041 |
USD 10.220 |
EUR 9.198 |
+0,2%(2) |
| Super Discount Markets |
USD 264 |
EUR 234 |
USD 287 |
EUR 259 |
+ 8,9% |
| Delhaize 'De Leeuw' (1) |
BEF 111.219 |
EUR 2.757 |
BEF 116.993 |
EUR 2.900 |
+5,2% |
| P.G. (1) |
FRF 2.221 |
EUR 337 |
FRF 2.177 |
EUR 332 |
-2,0% |
| Alfa-Beta Vassilopoulos (1) |
GRD 111.457 |
EUR 362 |
GRD 135.891 |
EUR 414 |
+ 21,9% |
| Delvita (1) |
CZK 6.075 |
EUR 171 |
CZK 8.794 |
EUR 246 |
+ 44,8% |
| GROUP TOTAL |
BEF 508.592 |
EUR 12.608 |
BEF 520.824 |
EUR 12.911 |
+ 2,4% (3) |
(1)Including VAT (estimated and unaudited figures)
(2) + 6.1 % adjusted for non-recurring events: the closure by Food Lion of 61 supermarkets in Texas in the fourth quarter of 1997, the additional trading week in 1997 and the change in calculation in sales tax from May 1998 on
(3) + 1.5 % at unchanged currency rates; + 8.5 % without the non-recurring elements mentioned for Food Lion (see footnote nr 2), the closure in 1998 in Belgium of one supermarket and the 45 Dial stores, the consolidation from 1998 on of only 50 % of P.G.
| NUMBER OF OUTLETS |
End of 1997 |
End of 1998 |
98/97 |
End of 1999 Outlook |
99/98 |
VS : Food Lion + Kash n' Karry
Cub Foods |
1.157
14 |
1.207
18 |
+50
+4 |
1.252
18 |
+45
- |
Belgium:DelhaizeSupermarket
AD Delhaize+Superette
Delhaize 2
Dial
Di
Tom & Co |
111
217
5
45
100
33 |
112
237
13
0
107
46 |
+1
+20
+8
-45
+7
+13 |
114
257
15
0
117
66
|
+2
+20
+2
-
+10
+20
|
France : Stoc
Marché Plus |
37
10 |
37
9 |
-
-1 |
38
14 |
+1
+5 |
| Greece : Alfa-Beta Vassilopoulos |
31 |
42 |
+11 |
52 |
+10 |
| Czech & Slov. Rep. : Delvita |
43 |
59 |
+16 |
69 |
+10 |
| Thailand : Food Lion |
2 |
5 |
+3 |
13 |
+8 |
| Indonesia : Super Indo |
11 |
12 |
+1 |
19 |
+7 |
| GROUP TOTAL |
1.816 |
1.904 |
+88 |
2.044 |
+140 |
Shareholder's calendar
- Press release consolidated results 1998 : March 26, 1999
- Final date for depositing shares for the General Meeting of Shareholders : May 20, 1999
- General Ordinary Meeting of Shareholders :May 27, 1999
Investor and financial press contact
Guy Elewaut
Tel.: 32.(0)2.412.29.48 of 32.(0)477.50.07.96
Fax.:32.(0)2.412.29.76
Brussels, January 8, 1999