BRUSSELS - 28 April 2000 - In the first quarter of 2000, sales (excluding taxes) of the Delhaize Group amounted to EUR 3.6 billion, an increase of 15.2 % compared with the first quarter of 1999. At identical exchange rates, sales rose by 4.9 %.
Operating cash flow increased by 24.5 % to EUR 242.2 million. In comparison with the first quarter of 1999, the operating cash flow margin increased from 6.3 % to
6.8 %.
The net current profit before goodwill amortisation (Group share) of the Delhaize Group was up by 37.2 % to EUR 41.8 million. The net current profit per share rose by 37.1 % to EUR 0.80. The net profit after goodwill amortisation (Group share) amounted to EUR 40.1 million (EUR 0.77 a share), an increase by 35.2 %.
During the first quarter of 2000, the Delhaize Group extended its sales network with 20 stores to a total of 2,132 outlets. In March 2000, the Delhaize Group reached an agreement to acquire Mega-Image, with 8 supermarkets operated in Bucharest the largest food retailer in Romania. In April 2000, the Delhaize Group joined the web-based business-to-business marketplace WorldWide Retail Exchange.
In 2000, the Delhaize Group expects an increase of its sales network by 337 stores (+ 11 %) to 2,449 stores, without taking into account possible divestitures of Hannaford stores. Delhaize America continues the negotiations with the US Federal Trade Commission (FTC) concerning the acquisition of Hannaford. The closing of this transaction is expected in the second quarter of 2000. The company is on track to realise recurrent synergies of at least USD 40 million during the first full year after the merger and at least USD 75 million during the third full year.
In the first quarter of 2000, the Delhaize Group acquired 180,000 Delhaize America shares. As a result the Delhaize Group's holding in Delhaize America rose from 50.83 % at the end of 1999 to 50.95 % at the end of March 2000.
'We are especially pleased with the current profit increase at identical exchange rates of 23.8 %', says Pierre-Olivier Beckers, Chief Executive Officer of the Delhaize Group. 'Taking into account the future acquisition of Hannaford and the following dilution of our shareholding in Delhaize America, we feel comfortable to realise in 2000 the objective of an increase of the consolidated current result by at least 15 %.'
The Delhaize Group is a food retailer headquartered in Belgium and listed on the Brussels Stock Exchange. The Delhaize Group operates in 11 countries and achieved in 1999 sales of EUR 14.3 billion and its net earnings amounted to EUR 169.9 million.
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Operating companies
In the first quarter of 2000, sales (excluding taxes) of Delhaize America (U.S.A) stood at USD 2.48 billion (EUR 2.51 billion), a 3 % increase. Operating cash flow increased by 11.7 % to USD 198.6 million (EUR 201.1 million). Net profit of Delhaize America amounted to USD 65.5 million (EUR 66.3 million), a 11.7 % increase. At the end of March 2000, Delhaize America was operating 1,285 supermarkets, 9 more than at the end of 1999.
Over the first quarter of 2000, Super Discount Markets (U.S.A.) achieved sales (excluding taxes) of USD 71.2 million (EUR 72.1 million), an increase by 4.2 %. Operating cash flow rose by 3.7 % to USD 1.4 million (EUR 1.4 million).
During the first three months of 2000, Delhaize Belgium achieved sales (including taxes) of EUR 751 million, an increase of 5.7 %. Operating cash flow was up by 5.9 % to EUR 26.2 million. The sales network was extended with 5 AD Delhaize or Superette, 1 Delhaize City and 3 Tom & Co.
During the first quarter of 2000, sales (including taxes) of Alfa-Beta (Greece) were up by 13.1 % to GRD 39.1 billion (EUR 117.5 million).). Operating cash flow increased by 18.5 % to GRD 1.2 billion (EUR 3.6 million). Profit before taxes rose from GRD 151.6 million (EUR 0.47 million) to GRD 174.4 million (EUR 0.52 million), an increase by 15 %. Alfa-Beta opened 1 new supermarket to a total of 49 stores.
Sales (including taxes) of Delvita (Czech Republic and Slovakia) totalled CZK 3.3 billion (EUR 92.6 million), a rise of 38.9 %. Operating cash flow amounted to CZK 155.6 million (EUR 4.3 million), a rise of 33.1 %. At the end of March 2000, Delvita was operating 113 stores, of which 99 in the Czech Republic and 14 in Slovakia.
During the first quarter of 2000, P.G. (France) achieved sales (including taxes) of EUR 84 million (+ 7 %) and an operating cash flow of EUR 2.8 million (+ 20.4 %). P.G. operated 50 stores at the end of March 2000.
Sales (excluding taxes) of the operating companies of the Delhaize Group in Asia rose during the first quarter of 2000 by 22.6 % to EUR 53 million. Operating cash flow amounted to EUR 1.3 million, a rise of 19.1 %. The number of stores amounted to a total of 53 supermarkets.
Investors and financial press contact
Guy Elewaut
Tel.: + 32 (0)2 412 29 48 or + 32 (0)477 50 07 96
Fax: + 32 (0)2 412 29 76
Number of Outlets, Overview Results, Group Results