Delhaize Group Third Quarter Results


BRUSSELS, BELGIUM--(Marketwire - Nov 7, 2012) -

Financial Summary Third Quarter 2012
» Revenue growth of 1.6% (2.1% organic growth) at identical exchange
» Comparable store sales decreased by 1.6% in the U.S. and increased
by 0.6% in Belgium
» Food Lion repositioning is delivering encouraging results with
positive comparable sales growth in repositioned stores. The Food Lion
network posted flat real growth during Q3.
» Strong revenue and profitability increase in SEE&A
» Underlying operating margin of 4.0%, impacted by ongoing price
» Reiterate free cash flow target of EUR500 million in 2012 following
EUR323 million generated over the first nine months, EUR197 million in
» Confirm full year underlying operating profit guidance at the
bottom-end of the range of a 15-20% decline

» CEO Comments

Pierre-Olivier Beckers, President and Chief Executive Officer of DelhaizeGroup,commented: "Despite tough market conditions, we are seeing signs that ourinvestments are yielding positive results, with revenues increasing andstrongcash generation in the last three months. The repositioning of Food Lioncontinues to give us confidence for the future. In the third quarter, therepositioned stores, which account for over 60% of the Food Lion network,delivered positive comparable store sales, leading to a flat performancefor theFood Lion banner when adjusted for inflation. The recent arrival of RolandSmith, who joined as CEO of Delhaize America, will help to furtheracceleratethe ongoing transformation of our U.S. operations."

"In Belgium, the economic and competitive environment has not improved.While weare not happy with the evolution of our market share, we are encouragedby thesecond consecutive quarter of positive comparable store salesgrowth. Inaddition, in Southeastern Europe & Asia, our initiatives are gainingmomentumand delivering solid revenue growth coupled with improved profitability."

"We remain focused on improving our price competitiveness whilemaintaining ourcash flow discipline. This approach should lead to sustainable revenuegrowthand the realization of shareholder value. We have made considerableprogresstowards realizing our free cash flow target of EUR500 million for 2012,generatingEUR323 million through the first nine months of 2012. However, during thequarter,the Group's underlying operating margin continued to be impacted by oureffortsto structurally improve our price positioning across the group. We areconfidentthat we will reach thebottom-end of our full year underlying operating profit guidance range."

Q3 2012 Presentation:

Q3 2012 Press release :

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Source: Delhaize Group via Thomson Reuters ONE


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