In 1999, the DELHAIZE 'THE LION' GROUP achieved sales (taxes excluded) of BEF 577.4 billion (EUR 14.3 billion), an increase of 10.9 % compared to 1998. Continuous growth was recorded in all markets.
At the end of 1999, the DELHAIZE 'THE LION' GROUP was operating a total of 2,112 outlets, an increase of 208 stores, excluding the 153 stores of HANNAFORD. The total sales area rose by 11.6 % to 4.17 million m2. Following the investment in SHOP N SAVE (Singapore), the DELHAIZE 'THE LION' GROUP is now operating in ten countries.
For the financial year 1999, the DELHAIZE 'THE LION' GROUP forecasts an increase by at least 10 % of both the consolidated net profits before goodwill amortisation and the operating cash flow, which should result in an increase of the dividend.
On October 29, 1999, the Board of Directors of the DELHAIZE 'THE LION' GROUP authorised the Executive Committee to purchase up to 5 million more shares of DELHAIZE AMERICA. On December 31, 1999, DELHAIZE 'THE LION' owned 78,898,242 shares DELHAIZE AMERICA A and B (50.8 %), or 2,767,900 more than at the end of October 1999.
In August 1999, DELHAIZE AMERICA announced the acquisition of HANNAFORD, which currently operates 153 supermarkets, most of them located in the North-East of the United States, and plans the opening of 9 additional supermarkets in 2000. In 1998, HANNAFORD posted sales of USD 3.3 billion (BEF 120 billion or EUR 3 billion). The closing of the acquisition of HANNAFORD is expected around the end of the first quarter of 2000.
As from January 1, 2000, Mr. R. William McCanless, President and Chief Executive Officer of DELHAIZE AMERICA, was appointed member of the Executive Committee of the DELHAIZE 'THE LION' GROUP. 'We are delighted to benefit from the expertise of Bill McCanless, who will bring to the meetings of the Executive Committee the indispensable 'voice of America', said Mr Pierre-Olivier Beckers, Chief Executive Officer of the DELHAIZE 'THE LION' GROUP.
For the DELHAIZE 'THE LION' GROUP, 2000 will be another year of growth. In 2000, the number of stores is expected to increase by 329 sales outlets to a total of 2,441 stores. For 2000, the DELHAIZE 'THE LION' GROUP plans capital expenditures of BEF 21.2 billion (EUR 526.5 million), excluding the acquisition and capital expenditures of HANNAFORD.
*****
In the United States, DELHAIZE AMERICA, the umbrella company for the trade names 'Food Lion', 'Kash n' Karry' and 'Save 'n Pack', achieved in 1999 sales (taxes excluded) of USD 10.9 billion (BEF 412 billion or EUR 10.2 billion), an increase of 6.5 %. Adjusted for the change from May 1998 on in the calculation of sales tax, sales grew by 7.1 %. Same store sales rose by 1.8 %.
DELHAIZE AMERICA was operating 1,276 supermarkets at the end of 1999. During the financial year, DELHAIZE AMERICA opened 100 stores and relocated or closed 31 stores. The net increase in stores amounted to 69 outlets. 145 stores were modernised and enlarged. The total sales area increased by 10.6 % to 43 million ft2 (3.36 million m2).
The expansion of DELHAIZE AMERICA will continue in 2000 with the opening of 85 new supermarkets. 18 stores will be relocated or closed, bringing the total to 1,343 stores, a net increase of 67 outlets. 150 existing stores will be renovated and enlarged. The total sales area will grow by 8 %. Without the acquisition of HANNAFORD, DELHAIZE AMERICA plans capital expenditure of USD 390 million (BEF 14.8 billion or EUR 366 million) in 2000.
SUPER DISCOUNT MARKETS (U.S.A.) achieved sales (taxes excluded) of USD 315 million (BEF 11.9 billion or EUR 295.2 million), 9.5 % more than in 1998. In 1999, 2 supermarkets were taken over from a competitor and turned into 'Cub Foods' supermarkets, bringing the number of 'Cub Foods' stores to 20. The total sales area increased by 8 % to 82,511 m2. In 2000, SUPER DISCOUNT MARKETS plans the opening of 1 'Cub Foods' store and 6 'Save-A-Lot' discount stores.
In Belgium and the Grand Duchy of Luxembourg, DELHAIZE 'LE LION' achieved sales (including taxes) of BEF 121.7 billion (EUR 3 billion) in 1999. Food inflation decreased from 1.8 % in 1998 to 0.2 % in 1999. Nevertheless sales increased by 4 % due to the opening of new stores, mainly affiliated stores. Adjusted for the sales of the 45 Dial stores closed in 1998, sales increased by 5.5 %. In 1999, the total market share continued to increase. During the course of the financial year, the company opened 3 integrated supermarkets, 14 AD Delhaize or Superettes, 1 Delhaize 2, 9 Di and 11 Tom & Co. The total sales area increased by 6.5 % to 463,813 m2.
In 2000, DELHAIZE 'LE LION' plans to open 2 new supermarkets, 20 AD Delhaize or Superette, 1 Delhaize 2, 10 Di and 23 Tom & Co. The renovation of existing supermarkets will be continued. In 2000, DELHAIZE 'LE LION' plans capital expenditures of BEF 2.7 billion (EUR 67.5 million) in the Belgian operations.
In Greece, sales (including taxes) of ALFA-BETA rose by 14.9 % to GRD 156 billion (BEF 19.3 billion or EUR 479.3 million). At the end of 1999, the sales growth returned to the level of before the dioxin crisis and the Athens earthquake. In 1999, food inflation amounted in Greece to 2.4 % compared to 4.4 % in 1998. At the end of 1999, ALFA-BETA operated 48 supermarkets.
In 1999, the sales network was reinforced by 6 stores, of which 4 located in Thessaloniki, a new market for ALFA-BETA. The total sales area increased by 15.7 % to 58,550 m2. For 2000 an increase by 10,000 m2 of the total sales area, or at least 6 new supermarkets, is planned. ALFA-BETA plans capital expenditures of GRD 8 billion (BEF 980 million or EUR 24.3 million).
In the Czech and Slovak Republic, DELVITA increased its sales by 42,6 % to CZK 12.5 billion (BEF 13.8 billion or EUR 341 million - including taxes). In 1999, average food prices decreased by 2 % in the Czech Republic. The acquisition in May 1999 of 50 Interkontakt-stores, the opening of 4 new supermarkets and the excellent performance of the existing supermarkets, contributed to the strong sales growth. The total sales area increased by 50.4 % to 99,183 m2. The integration of the Interkontakt-stores proceeds favourably. At the end of 1999, DELVITA was operating 113 sales outlets, of which 99 in the Czech Republic under the trade names 'Delvita' and 'Sama', and 14 in Slovakia under the trade name 'Delvita'. For 2000, an increase by 10,000 m2 of the total sales area or the opening of at least 2 new supermarkets in the Czech Republic and 5 in Slovakia, are planned. In 2000, DELVITA plans capital expenditure of CZK 1.45 billion (BEF 1.58 billion or EUR 39.2 million).
In France, the P.G. GROUP achieved sales (including taxes) of FRF 2.2 billion (BEF 13.6 billion or EUR 337.3 million). At the end of 1999, the P.G. GROUP was operating 38 supermarkets and 12 'Marché Plus' affiliated stores, 4 more sales outlets than at the end of 1998. The total sales area increased by 5.4 % to 54,810 m2. For 2000, P.G. plans capital expenditures of FRF 85 million (BEF 522.8 million or EUR 13 million) and an extension of its sales network by 5 affiliated stores 'Marché Plus'.
In 1999, sales (taxes excluded) of the DELHAIZE 'THE LION' GROUP companies in Asia amounted to BEF 6.6 billion (EUR 163.7 million). At the end of 1999, the DELHAIZE 'THE LION' GROUP operated 52 supermarkets in Asia, 35 more than at the end of 1998. In 2000, the DELHAIZE 'THE LION' GROUP expects to increase the number of stores in Asia by 19 sales outlets to a total of 71 stores.
Sales of BEL-THAI SUPERMARKET (Thailand) grew strongly. At the end of 1999, BEL-THAI SUPERMARKET was operating 13 supermarkets under the 'Food Lion' trade name, 8 more than the previous year, including the 6 supermarkets of Sunny's acquired in May 1999. The total sales area increased by 131.9 % to 13,089 m2. In 2000, it is planned to strengthen the sales network by 8 supermarkets.
Sales of LION SUPER INDO (Indonesia) increased sharply. At the end of 1999, LION SUPER INDO operated 14 supermarkets, 2 more than the previous year. The total sales area increased by 12.7 % to 12,014 m2. LION SUPER INDO plans to open 6 new supermarkets in 2000.
In January 1999, the DELHAIZE 'THE LION' GROUP acquired 49 % of SHOP N SAVE, the third food retailer in Singapore. At the end of 1999, SHOP N SAVE was operating 25 supermarkets, 3 more than at the end of 1998. In 2000, it is planned to strengthen the sales network by 5 supermarkets.
|
NUMBER OF OUTLETS
|
End of 1998
|
End of 1999
|
1999/1998
|
End
of 2000
Outlook
|
2000/1999
|
|
U.S.A.
Belgium
&
G. D. Lux.
France
Greece
Czech
Rep.
Slovakia
Thailand
Indonesia
Singapour
|
Food Lion + Kash n' Karry
Cub Foods
Save-A-Lot
Delhaize Supermarket
AD Delhaize +
Superette
Delhaize 2
Di
Tom & Co
Stoc
Marché Plus
Alfa-Beta
Delvita +
Sama
Delvita
Food Lion
Super Indo
Shop N Save
|
1,207
18
-
112
237
13
107
46
37
9
42
58
1
5
12
-
|
1,276
20
-
115
251
14
116
57
38
12
48
99
14
13
14
25
|
+ 69
+ 2
-
+ 3
+ 14
+ 1
+ 9
+ 11
+ 1
+ 3
+ 6
+ 41
+ 13
+ 8
+ 2
+ 25
|
1,343
21
6
117
271
15
126
80
38
17
54
101
19
21
20
30
|
+
67
+
1
+
6
+
2
+
20
+
1
+
10
+
23
+
0
+
5
+
6
+
2
+
5
+
8
+
6
+
5
|
|
GROUP SUBTOTAL
|
1,904
|
2,112
|
+208
|
2,279
|
+ 167
|
|
U.S.A. Hannaford
|
-
|
-
|
-
|
162 (1)
|
+
162 (1)
|
|
GROUP TOTAL
|
1,904
|
2,112
|
+208
|
2,441 (1)
|
+ 329
(1)
|
(1)
Excluded
possible divestitures following the negotiations with the Federal Trade Commission (FTC).
|
SALES
AREA (1)
|
End of 1998
|
End of 1999
|
1999/1998
|
|
U.S.A.
(2)
Belgium
&
G. D. Lux.
France
Greece
Czech
& Slovak Rep.
Thailand
Indonesia
Singapore
|
Food Lion + Kash n' Karry
Cub Foods
Delhaize Supermarket
AD Delhaize +
Superette
Delhaize 2
Di
Tom & Co
Stoc + Marché Plus
Alfa-Beta
Delvita + Sama
Food Lion
Super Indo
Shop N Save
|
3,037,849
76,376
215,260
169,140
8,300
27,873
15,017
51,995
50,600
65,934
5,645
10,656
-
|
3,360,724
82,511
220,170
185,014
8,790
30,726
19,113
54,810
58,550
99,183
13,089
12,014
23,913
|
+ 10.6 %
+ 8.0 %
+ 2.3 %
+ 9.4 %
+ 5.9 %
+ 10.2 %
+ 27.3 %
+ 5.4 %
+ 15.7 %
+ 50.4 %
+131.9 %
+ 12.7 %
-
|
|
GROUP TOTAL
|
3,734,646
|
4,168,607
|
+ 11.6 %
|
(1) Net sales area (excluding storage) m2.
(2) Excluding Hannaford stores.
|
SALES
(in millions)
|
1998
|
1999
|
1999/1998 (1)
|
|
Delhaize
America
Super
Discount
Markets
Delhaize
“Le Lion”
Belgium (2)
Alfa-Beta
(2)
Delvita
(2)
P.G.
(2)
Asia
(3)
|
USD
10,220
USD
287
BEF
117,014
GRD135,891
CZK
8,789
FRF
2,182
BEF 1,051
|
EUR
9,198
EUR
259
EUR
2,901
EUR
414
EUR
246
EUR
333
EUR 26
|
USD 10,879
USD 315
BEF121,657
GRD156,156
CZK 12,533
FRF 2,212
BEF 6,606
|
EUR 10,212
EUR 295
EUR 3,016
EUR 479
EUR 341
EUR 337
EUR 164
|
+
6.5% (4)
+
9.5%
+
4.-% (5)
+ 14.9%
+ 46.3%
+
1.4%
N/A
|
|
GROUP
TOTAL
|
BEF
520,885
|
EUR 12,912
|
BEF 577,402
|
EUR14,313
|
+10.9% (6)
|
(1)
Growth
in percentage in local currency.
(estimated and unaudited figures)
(2)
Including
taxes.
(3)
Total
sales of Bel-Thai Supermarket, Lion Super Indo and Shop N Save.
(4)
+
7.1 % excluded the change in calculation in sales tax from May 1998 on.
(5)
+
5.5 % excluded the closure of the 45 Dial stores in 1998.
(6)
+
7.5 % at unchanged currency rates.
In
1999, the number of shares of the Delhaize 'The Lion' Group increased from 51,962,625 to
52,016,925 by the exercise of 54,300 warrants. In 1999,
the average number of shares was 51,983,055.
CONTRIBUTION OF
THE COMPANIES
TO THE GROUP SALES (taxes
excluded)
|
In millions of BEF
|
%
|
|
1998
|
1999
|
1998
|
1999
|
|
Delhaize
America
Super
Discount Markets
Delhaize
“Le Lion” Belgium
Alfa-Beta
Delvita
P.G.
(50 %)
Asia
(1)
|
371,028
10,431
108,357
15,085
9,120
6,024
840
|
411,953
11,910
113,035
17,469
12,651
6,104
4,280
|
71.2
2.-
20.8
2.9
1.7
1.2
0.2
|
71.3
2.1
19.6
3.-
2.2
1.1
0.7
|
|
GROUP TOTAL
|
520,885
|
577,402
|
100.0
|
100.0
|
(1)
Total
sales of Bel-Thai Supermarket (45 % in 1998, 100 % in 1999)
(estimated and unaudited figures)
Lion Super Indo and Shop N Save (49 %).
Shareholder's calendar
- Press release consolidated results 1999: March 16, 2000
- Final date for depositing shares for the General Meeting of Shareholders: May 19, 2000
- Ordinary General Meeting of Shareholders: May 25, 2000
- Dividend becomes payable for the 1999 financial year: May 26, 2000
- Press release 2000 half-year results: September 7, 2000
Investor 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
This press release is available in English, French and Dutch. You can also find it on the website http://corporate.delhaize-le-lion.be
Brussels, January 7, 2000.