Delhaize Group Reports 2011 Revenues and Announces Network Optimization to Accelerate Profitable Growth
(Thomson Reuters ONE) -
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Fourth Quarter 2011 Revenues (at identical exchange rates)
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» Group revenue growth of 7.0% (+1.5% excluding Maxi)
» Continued solid trends in the 200 Food Lion Phase One stores
» Excellent revenue growth at Bottom Dollar Food in Philadelphia
» Strong revenue increase in Southeastern Europe and Asia (+62.9%, +6.6%
excluding Maxi)
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Full Year 2011 Revenues (at identical exchange rates)
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» Group revenue growth of 4.6% (+2.4% excluding Maxi)
» Revenue growth in all our operating segments
» Solid revenue growth in Southeastern Europe and Asia (+32.1%, +7.5%
excluding Maxi)
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Other Highlights
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» Optimization of store network: closing 146 and converting 64 underperforming
stores in the U.S. and Southeastern Europe
» Investment program of approximately EUR 800-850 million in 2012, including
200 to 230 store openings and approximately 200 store remodels
» Acceleration of the roll out of the brand strategy work to another 600 to
700 Food Lion stores by the end of 2012
» CEO Comments
Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group
said: "While we grew our revenues for the full year, we are disappointed in the
fourth quarter revenues in the U.S. and Belgium. Consumers continued to feel
pressured in the fourth quarter due to the macro-economic environment and this
led to a reduction in spending. We also encountered an increase in competitive
activity. We are determined to further improve our price competitiveness in
2012, particularly in the U.S. and Belgium."
"After a thorough review of our store portfolio, we have decided to close or
convert a number of stores in the U.S. and in Southeastern Europe during the
first quarter of 2012. This decision is in line with our New Game Plan which is
aimed at accelerating profitable growth. For a retailer, it is never an easy
decision to close stores as we are fully aware of the impact on our associates,
our customers and the communities we serve. Having said that, we feel these
decisions are in keeping with our responsibility to our shareholders to deploy
resources where they will achieve the highest return. We fully expect these
actions to be value enhancing in 2012."
"We are consistently executing our New Game Plan strategy and continue to invest
in the many initiatives that are part of it such as the successful brand
strategy work at Food Lion, the expansion of Bottom Dollar Food in its newer
markets and our growth plans for Southeastern Europe. Funding for these will
continue to come largely from the EUR 500 million gross annual cost savings
target that we expect to exceed by the end of 2012. We confirm our target to
achieve 5 to 7% revenue growth annually by 2014 and the ambitious plans to open
450 new stores in our high growth operations over the next 3 years that we
communicated during the recent analyst field trip."
» Contacts
Chris Farrell: + 32 2 412 75 71
Aurélie Bultynck: +32 2 412 83 61
Steven Vandenbroeke (media): + 32 2 412 86 69
Amy Shue (U.S. investors): +1 704 633 8250 (ext. 2529)
Press release in pdf format:
http://hugin.info/133961/R/1576963/491561.pdf
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originality of the information contained therein.
Source: Delhaize Group via Thomson Reuters ONE
[HUG#1576963]
Unternehmensinformation / Kurzprofil:
Datum: 12.01.2012 - 03:01 Uhr
Sprache: Deutsch
News-ID 103431
Anzahl Zeichen: 4651
contact information:
Town:
Brussels
Kategorie:
Business News
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