Belgium-based food retailer Delhaize Group has reported 1.45% increase in revenues to €5.52bn for the first quarter (Q1) of 2013, compared to €5.44bn in the same period in 2012.
The company's underlying operating profit was €214m, a 13% increase, compared to the first quarter of 2012.
In the US, underlying operating margin grew by 4.2% against the prior year's 3.7%, due to positive sales leverage supported by the favorable calendar impact, non-performing store closures, cost reductions and Bottom Dollar Food's significantly improved results.
In Belgium, underlying operating margin was 5.1%, higher than 4.6% a year ago.
In contrast, operating margin in Southeastern Europe decreased to 1.4% from 2% in the prior year, mostly driven by price investments.
Comparable store sales growth was 1.9% in the US, while in Belgium comparable store sales growth was 2.4%.
In Southeastern Europe, revenues grew 6.8% at identical exchange rates due to store openings, while consumer spending is under pressure in the region.
Delhaize Group president and chief executive officer Pierre-Olivier Beckers said the figures in first quarter were impressive, which were mostly driven by positive revenue growth and profitability at Delhaize America and Delhaize Belgium, partly supported by favorable weather conditions.
"For the remainder of 2013, we will continue to make significant investments in our strategic initiatives. Phase 4 of the Food Lion repositioning will be launched next week, bringing the total of repositioned FoodLion stores to 78%," Beckers added.
"At Hannaford we will increase our investment in price as we focus on delivering more value to our customers. In Belgium, we have identified further opportunities to improve our stores,assortment and service level while remaining price competitive."
