In 1997 the Delhaize 'Le Lion' Group achieved record sales (taxes excluded) of BEF 508 billion compared with BEF 412 billion in 1996, an increase of 23.1%.
1,816 sales outlets compared with 1,700 a year before contributed to the growth.
The Group opened 240 new stores during the financial year.
Its expansion, which has continued in all its markets, has been marked more particularly
by the acquisition of 100 Kash n' Karry supermarkets in the United States and by the Group's
entry into the Asian market, in Indonesia and Thailand.
For the 1997 financial year, the Delhaize 'Le Lion' Group forecasts an increase of the consolidated current profits and a cash
flow showing a sharp increase over the previous financial year, which will be reflected in increased dividends.
The extraordinary charges relating to FOOD LION's withdrawal from Texas will be fully offset by the capital gain made as a result
of the partnership signed with Comptoirs Modernes in P.G.
The Delhaize 'Le Lion' Group is preparing for a new year of growth in 1998 with the opening of 167
new sales outlets in its various markets.
In Belgium, Delhaize 'Le Lion' S.A. achieved a turnover, VAT included, of BEF 111 billion, which represents a new increase
of BEF 4 billion or 3.8%. The company opened 38 new sales outlets during the financial year, namely 1 supermarket,
16 AD & Superettes, 8 Di, 3 Delhaize 2 stores and 10 Tom & Co.
Delhaize 'Le Lion' plans to open 1 new supermarket and 51 stores under its other Belgian trade names in 1998.
In 1998 Delhaize 'Le Lion' plans capital expenditures of BEF 2.6 billion in Belgium.
In the United States, FOOD LION and KASH n' KARRY achieved a turnover of USD 10.2 billion, up 13.2%. Sales of comparable stores
rose by 0.6%. FOOD LION and KASH n' KARRY were operating 1,157 supermarkets at the end of 1997. During the financial year, FOOD
LION acquired 100 Kash n' Karry supermarkets and opened 64 new stores including the relocation of 25 existing stores. 99 stores
were remodeled or expanded. 94 existing stores were closed including the 61 supermarkets supplied by the former distribution
centre in Texas.
In 1998, the expansion of the FOOD LION GROUP will continue with the opening of 75 new supermarkets, the remodeling of 133
other stores and the relocation or closing of 35 existing stores.
In Atlanta, SUPER DISCOUNT MARKETS achieved sales of USD 264 million against USD 275 million in 1996. A fourteenth CUB FOODS
supermarket was opened in December 1997. The company plans one opening in 1998.
In France, the P.G. GROUP achieved a turnover, VAT included, of FRF 2.2 billion (BEF 13.6 billion), an increase of 6.7%.
Five supermarkets, including three P.G. Partenaires, were opened during the financial year. In December, the Delhaize 'Le Lion'
Group signed a joint-venture agreement with the French supermarket group 'Comptoirs Modernes' under which the two groups will run
the P.G. company as partners (50/50). The P.G. logo will be replaced by that of the STOC supermarkets. The latter will
consequently include more than 500 supermarkets in France. The Delhaize 'Le Lion' Group has made a significant capital
gain on this transaction. The Delhaize 'Le Lion' Group scope of consolidation will be adjusted in 1998 due to this new
equity allocation. Several new openings are planned for 1998.
In Greece, ALFA-BETA achieved a turnover, VAT included, of GRD 111 billion (BEF 14.6 billion), up 16.8%. Six units were added to
the supermarket network. The programme of price cuts combined with a re-engineering of the company, started in the first half of the
year, has shown success. The increase in sales in the second half of the year of 20.8% confirms this. It is planned that ten outlets
will be opened in 1998.
In the Czech Republic, DELVITA continues to grow, with a turnover, VAT included, of CZK 6.1 billion (BEF 6.9 billion), an increase
of 63.8%. Thirteen new supermarkets were opened during the financial year, bringing the number of sales outlets in operation to 43.
In 1998 Delvita plans to open 17 supermarkets and to start operating a regional distribution centre in Moravia to support the
development in this region and the expansion into Slovakia.
The results achieved in Asia, where the Delhaize 'Le Lion' Group recently made its entry, will only be partially consolidated in 1997.
In Thailand, BEL-THAI was operating two supermarkets under the FOOD LION trade name at the end of 1997. 45% of the income statement will
be consolidated by the Delhaize 'Le Lion' Group in 1997. It is planned that five new sales outlets will be opened in 1998.
In Indonesia, LION SUPER INDO operates eleven supermarkets. This company will not be consolidated in the accounts of
the Delhaize 'Le Lion' Group in 1997. In 1998 LION SUPER INDO plans to open three sales outlets.
The financial and economic crisis affecting these countries, nevertheless creates new development opportunities, especially in real
estate. The sharp devaluations of the currencies of these countries have enabled the value of the initial Group investments to be reduced to
BEF 336 million. As planned, since January 1, 1998 a permanent team of Belgian executives is on the spot in order to develop the trade names of the Group in this part of Asia.
|
SALES (in millions) |
|
1997 |
1996 |
97/98 |
Delhaize Le Lion
Food Lion + KnK
SDM
P.G.
Alfa-Beta
Delvita
Bel-Thai
Lion Super Indo
|
| BEF | 110,982 | | (1) |
| USD | 10,194 | | |
| USD | 264 | | |
| FRF | 2,221 | | (1) |
| GRD | 111,439 | | (1) |
| CZK | 6,067 | | (1) |
| THB | 87 | | |
| IDR | 35,890 | | |
|
| BEF | 106,970 | | (1) |
| USD | 9,006 | | |
| USD | 275 | | |
| FRF | 2,082 | | (1) |
| GRD | 95,376 | | (1) |
| CZK | 3,704 | | (1) |
|
| + | 3.8 | % |
| + | 13.2 | % |
| - | 4.0 | % |
| + | 6.7 | % |
| + | 16.8 | % |
| + | 63.8 | % |
|
| TOTAL GROUP |
|
|
|
| (1) VAT included |
(2) + 11 % with comparable exchange rates |
(estimated and unaudited figures) |
|
NUMBER OF SALES OUTLETS |
|
at end 1996 |
at end 1997 |
Forecast 1998
+/- |
Forecast at
end 1998 |
| DELHAIZE 'LE LION' |
| AD & SUPERETTES DELHAIZE |
| DI |
| DIAL |
| DELHAIZE 2 |
| TOM & CO |
|
|
|
|
|
| TOTAL BELGIUM |
|
|
|
|
| Food Lion + Kash n' Karry |
| Super Discount Markets |
| P.G. & P.G. Partenaires |
| Alfa-Beta |
| Delvita |
| Bel-Thai |
| Lion Super Indo |
|
|
|
| + | 75 | - | 35 |
| + | 1 | | |
| + | 4 | | |
| + | 10 | | |
| + | 17 | | |
| + | 5 | | |
| + | 3 | | |
|
|
| TOTAL GROUP |
|
|
|
|
The 1997 consolidated results will be announced on March 27, 1998.
Brussels, January 9, 1998