Belgian supermarket chain Delhaize on Thursday said it expected its profits in the first quarter of 2014 to fall as it cuts its prices and invests to expand sales in the United States.
The group, which has about 3,500 stores worldwide and makes about 60 percent of its revenue in the United States, said it had earmarked 625 million euros ($869.06 million) for capital expenses in 2014, having spent 565 million in 2013.
Delhaize, which operates Food Lion and Hannaford in the United States and the Delhaize brand in Belgium, said it would propose a dividend of 1.56 euros per share to its shareholders, up from the 1.40 euros it paid out last year.
The market had been expecting a dividend of 1.30 euros, based on a Reuters poll of eight analysts.
The group had beaten market expectations for the fourth-quarter revenues, announced in January, with sales on a comparable basis up 2.4 percent in Belgium and 2.8 percent in the United States.
Operating profit, adjusted for one offs, fell 7.4 percent to 182 million euros in the fourth quarter.
