BRUSSELS - 7 September 2000 - In the first half of 2000, sales (excluding taxes) of the Delhaize Group amounted to EUR 7.5 billion, an increase of 15.7 % compared with the first half of 1999. In the second quarter of 2000, sales rose by 16.1 %.
The operating cash flow increased in the first six months of 2000 by 20.6 % to EUR 510.8 million, resulting in an operating cash flow margin of 6.83 %. The net current profit before goodwill amortisation (Group share) of the Delhaize Group was up by 19.8 % to EUR 90.1 million or EUR 1.73 per share. In the second quarter, it increased by 7.9 %. The net profit after goodwill amortisation (Group share) amounted to EUR 86.2 million (EUR 1.66 a share), an increase by 18.7 %.
During the six first months of 2000, the Delhaize Group extended its sales network by 65 stores to a total of 2,177 outlets, an increase by 3.1 %.
In the second quarter of 2000, the Delhaize Group acquired 2,719,500 Delhaize America shares. As a result the Delhaize Group's holding in Delhaize America rose from 50.95 % at the end of March 2000 to 52.69 % at the end of June 2000. After the closing of the Hannaford-transaction on July 29, the shareholding of the Delhaize Group in Delhaize America decreased to 45.33 % (37.45 % of the non-voting A-shares and 56.32 % of the voting B-shares).
In August 2000, Hannaford proceeded, as agreed with the Federal Trade Commission, with the sale of 38 stores in the Southeast of the United States, following the closure in June of its 13 other South-eastern supermarkets. Delhaize America confirms the plan to achieve recurrent pre-tax synergies of at least USD 40 million during the first full year after the merger and at least USD 75 million during the third full year.
The Delhaize Group reached a definitive agreement with the Group Carrefour according to which the Group Carrefour will purchase from the Delhaize Group its remaining 50 % shareholding in P.G. for an amount of FRF 450 million (EUR 68.6 million). This operation will be effective at the beginning of 2001.
The full acquisition at the end of June by the Delhaize Group of the minority stake in Caddy-Home now allows the Group to accelerate the development of its e-commerce activities and its integration into the Belgian network.
As last year, the Delhaize Group is reconducting in September a global supplier promotion to benefit to the customers of nine countries.
'We are pleased with the closing of the Hannaford acquisition. The integration with Delhaize America evolves favourably and will allow significant synergies', says Pierre-Olivier Beckers, Chief Executive Officer and President of the Delhaize Group. 'We also point out the performance of Delhaize Belgium, resulting in a strongly improving cash flow margin of 4.4 % in the first half of 2000, supported by a successful merchandising and a better product mix.'
For the full year 2000, the Delhaize Group expects an increase of its sales network by 283 stores (+ 13.4 %) to 2,395 stores. Taking into account the acquisition of Hannaford and the following dilution of the shareholding of the Delhaize Group in Delhaize America, the Delhaize Group feels comfortable it will achieve in 2000 the objective of an increase of the consolidated current result of at least 15 %.
The Delhaize Group is a food retailer headquartered in Belgium and listed on the Brussels Stock Exchange. The Delhaize Group operates in 11 countries and in 1999 achieved sales of EUR 14.3 billion and net earnings amounting to EUR 169.9 million.
Operating companies
In the first half of 2000, sales (excluding taxes) of
Delhaize America (U.S.A) stood at USD 5.13 billion (EUR 5.34 billion), a 4.3 % increase. Operating cash flow increased by 4.4 % to USD 390.7 million (EUR 406.9 million), which resulted in an operating cash flow margin of 7.6 %. The net profit of Delhaize America amounted to USD 124.7 million (EUR 129.8 million), a 1.8 % decrease. At the end of June 2000, Delhaize America was operating 1,300 supermarkets, 24 more than at the end of 1999.
Over the first half of 2000,
Super Discount Markets (U.S.A.) achieved sales (excluding taxes) of USD 144.0 million (EUR 150.0 million), an increase by 5.1 %. Operating cash flow remained stable at USD 2.8 million (EUR 2.9 million).
During the first six months of 2000,
Delhaize Belgium achieved sales (including taxes) of BEF 62.5 billion (EUR 1.55 billion), an increase of 5.7 %. Operating cash flow was up by 23.3 % to BEF 2.7 billion (EUR 67.4 million). The operating cash flow margin increased from 3.7 % in the first half of 1999 to 4.4 % this year. The sales network was extended by 8 AD Delhaize or Superette, 1 Delhaize City, 1 Di and 10 Tom & Co. In the second quarter of 2000, Delhaize Belgium launched successfully 5 Shop 'n Go petrol stores and is aiming at a total of 10 at the end of the year.
During the first six months of 2000, sales (including taxes) of
Alfa-Beta (Greece) were up by 12.9 % to GRD 80.4 billion (EUR 240.4 million). Operating cash flow increased by 18.6 % to GRD 3.6 billion (EUR 10.7 million). Profit before taxes amounted to GRD 756 million (EUR 2.3 million), stable in comparison with the GRD 745 million (EUR 2.2 million) in the first half of 1999. Alfa-Beta opened 4 new supermarkets to a total of 52 stores.
Sales (including taxes) of
Delvita (Czech Republic and Slovakia) totalled CZK 6.8 billion (EUR 187.3 million), a rise of 23.2 %. Operating cash flow amounted to CZK 368.2 million (EUR 10.2 million), an increase of 6.0 %, which resulted in an operating cash flow margin of 5.4 %. At the end of June 2000, Delvita was operating 114 stores, of which 99 in the Czech Republic and 15 in Slovakia.
In May and June 2000, sales (excluding taxes) of
Mega-Image (Romania) amounted to ROL 82.6 billion (EUR 4.3 million) and the operating cash flow to ROL 3.9 billion (EUR 0.2 million).
In the first half of 2000, P
.G. (France) achieved sales (including taxes) of FRF 1.1 billion (EUR 175 million), an increase of 8.0 %, and an operating cash flow of FRF 35.7 million (EUR 5.4 million). P.G. operated 48 stores at the end of June 2000.
Sales (excluding taxes) of the operating companies of the Delhaize Group in Asia rose during the first half of 2000 by 40.1 % to EUR 107 million. Operating cash flow amounted to EUR 0.9 million. At the end of June 2000, the Delhaize Group was operating a total of 55 supermarkets in Asia.
Report of the statutory auditors on the half year accounts
We have conducted a limited review of the half year accounts of the Delhaize Group as at 30 June 2000. Our limited review did not reveal any significant adjustments, which would be required to be made to half year accounts as presented.
Deloitte & Touche Reviseurs d'Entreprises s.c.c., represented by Mr Claude Pourbaix and Mr James Fulton.
Investors and financial press contact
| Guy Elewaut |
Tel.: + 32 (0) 2 412 29 48 or + 32 (0) 477 50 07 96 |
| Geoffroy d’Oultremont |
Tel.: + 32 (0) 2 412 83 21 or + 32 (0) 478 88 32 96 |
Fax: + 32 (0) 2 412 29 76
e-mail:
investor@delhaizegroup.com
This press release is available in English, French and Dutch.
You can also find it on the web site
http://www.delhaizegroup.com
Half Year 2000 Figures
|
GROUP RESULTS (1)
|
1sthalf 2000
|
1sthalf 2000
|
1sthalf 1999
|
2000/1999
|
|
|
(mio BEF)
|
(mio EUR)
|
(mio EUR)
|
|
| Sales (excluding taxes) |
301.883 |
7.483,5 |
6.470,2 |
|
|
Cash flow from operations (EBITDA)
EBITDA-margin
Depreciation
Amortisation of goodwill(4)
|
20.604
6,83 %
(7.241)
(234)
|
510,8
6,83 %
(179,5)
(5,8)
|
423,5
6,54%
(145,6)
(4,4)
|
+ 20,6 %
+ 23,3 %
+ 33,2 %
|
|
Operating profit (EBIT)
Financial profit
|
13.129
(3.470)
|
325,5
(86,0)
|
273,6
(61,1)
|
+ 19,0 %
+ 41,0 %
|
|
Current profit
Other income / (expense)
|
9.659
(12)
|
239,4
(0,3)
|
212,5
2,3
|
+ 12,7 %
-
|
|
Profit before income taxes
Income taxes
|
9.647
(3.531)
|
239,1
(87,5)
|
214,7
(78,9)
|
+ 11,4 %
+ 10,9 %
|
|
Net profit from consolidated companies
Minority interests
|
6.116
(2.638)
|
151,6
(65,4)
|
135,8
(63,1)
|
+ 11,7 %
+ 3,6 %
|
|
Net profit after goodwill (deel v/d Groep)
|
3.478
|
86,2
|
72,7
|
+ 18,7 %
|
|
Net profit before goodwill (deel v/d Groep)
|
3.634
|
90,1
|
75,2
|
+ 19,8 %(3)
|
|
Net profit after goodwill per share (BEF/EUR) (5)
|
66,85
|
1,66
|
1,40
|
+ 18,5 %
|
|
Net profit before goodwill per share (BEF/EUR) (5)
|
69,87
|
1,73
|
1,45
|
+ 19,7 %
|
|
Number of shares (average of the first six months)
|
52.017.150
|
52.017.150
|
51.963.537
|
+ 0,1 %
|
(1) The shareholding of the Delhaize Group in Delhaize America increased from 50.83 % at the end of December 1999 to 52.69 % at the end of June 2000. The average shareholding for the first half of 2000 is 51.16 %.
Mega-Image is fully consolidated since May 1, 2000.
(2) + 5.6 % at identical currency rates.
(3) + 8.9 % at identical currency rates.
(4) Comparative figures have been revised to reflect the change in the method of depreciation of the goodwill (40 years instead of 20 years for mature economies)
(5) The denominator is the average number of shares in the first six months.
|
COMPANIES' RESULTS
|
Sales
|
Cash flow from operations
|
|
(in million)
|
1st half 2000
|
1st half 1999
|
2000/1999
|
1st half 2000
|
1st half 1999
|
2000/1999
|
|
Delhaize
America (1) USD
|
5.126
|
4.916
|
4,3%
|
390,7
|
374,1
|
+4.4%
|
|
Super
Discount Markets (1)USD
|
144
|
137
|
+5,1%
|
2,8
|
2,8
|
+0.0%
|
|
Delhaize
Belgique (2)
BEF
|
62.483
|
59.1008
|
+5.7%
|
2.719,9
|
2.205,8
|
+23.3%
|
|
Alfa-Beta
(2)
GRD
|
80.396
|
71.191
|
+12,9%
|
3.587,5
|
3.026,0
|
+18,6%
|
|
Delvita
(2)
CZK
|
6.760
|
5.487
|
+23,2
|
382,6
|
347,5
|
+6,0%
|
|
Mega-Image
(3)
ROL
|
82.550
|
-
|
-
|
3.878
|
-
|
-
|
|
P.G.
(2)
FRF
|
1.146
|
1.061
|
+8,0%
|
35,7
|
45,6
|
-21,7
|
|
Asie
EUR
|
107
|
76
|
+40,1%
|
0,9
|
2,0
|
-53,7%
|
(1) Average rate first half 1999: 1 USD = 37.0541 BEF (EUR 0.9185) - Average rate first half 2000: 1 USD = 42.0109 BEF (EUR 1.0414).
(2) Including sales taxes.
(3) May and June 2000.
|
GROUP BALANCE SHEET
(1)(in million EUR)
|
June 30, 2000
|
December 31, 1999
|
|
Assets
|
|
|
|
Intangible assets (I+II+III)
|
474,7
|
431,0
|
|
Tangible and financial fixed assets (IV + V)
|
2.979,2
|
2.771,4
|
|
Inventories and receivables
(VI + VII + VIII + XI)
|
2.286,9
|
2.159,1
|
|
Treasury (IX + X)
|
193,4
|
366,1
|
|
Total assets
|
5.934,2
|
5.727,6
|
|
|
|
|
|
Liabilities
|
|
|
|
Shareholder's equity (including minority interests)(I-VIII)
|
2.174,8
|
1.990,9
|
|
Provisions for liabilities and deferred taxation(IX)
|
197,2
|
185,2
|
|
Amounts payable after one year(X)
|
1.206,9
|
1.116,0
|
|
Amounts falling due within one year (XI
+ XII)
|
2.355,3
|
2.435,5
|
|
of which financial liabilities (XI, A+B)
|
683,5
|
666,3
|
|
Total liabilities
|
5.934,2
|
5.727,6
|
(1) Closure rate 31/12/1999: 1 USD = 40,1552 BEF (EUR 0.9954) - Closure rate 30/6/2000: 1 USD = 42.3738 BEF (EUR 1.0504).
Second Quarter 2000 Figures
|
GROUP RESULTS (1)
|
2nd
Q 2000
|
2nd
Q 2000
|
2nd
Q 1999
|
2000/1999
|
|
(mio BEF)
|
(mio EUR)
|
(mio EUR)
|
|
|
Sales (excluding taxes)
|
158.617
|
3.932,0
|
3.386,3
|
+ 16,1 % (2)
|
|
Cash flow from operations (EBITDA)
EBITDA-margin
Depreciation
Amortisation of goodwill(4)
|
10.835
6,8 %
(3.826)
(126)
|
268,6
6,8 %
(94,8)
(3,1)
|
228,9
6,8 %
(76,2)
(2,6)
|
+ 17,3 %
-
+ 24,4 %
+ 19,9 %
|
|
Operating profit (EBIT)
Financial income / (expense)
|
6.883
(1.902)
|
170,6
(47,2)
|
150,1
(32,0)
|
+ 13,7 %
+ 47,5 %
|
|
Current profit
Other income / (expense)
|
4.980
10,4
|
123,5
0,3
|
118,1
2,4
|
+ 4,5 %
- 89,2 %
|
|
Profit before income taxes
Income taxes
|
4.991
(1.839)
|
123,7
(45,6)
|
120,5
(44,0)
|
+ 2,7 %
+ 3,8 %
|
|
Net profit from consolidated companies
Minority interests
|
3.151
(1.291)
|
78,1
(32,0)
|
76,6
(33,6)
|
+ 2,1 %
- 4,6 %
|
|
Net profit after goodwill (deel v/d Groep)
|
1.860
|
46,1
|
43,0
|
+ 7,2 %
|
|
Net profit before goodwill (deel v/d GROEP)
|
1.947
|
48,3
|
44,7
|
+ 7,9 % (3)
|
|
Net profit after goodwill per share (BEF/EUR) (5)
|
35,43
|
0,89
|
0,83
|
+ 7,1 %
|
|
Net profit before goodwill per share (BEF/EUR) (5)
|
37,75
|
0,93
|
0,86
|
+ 7,8 %
|
|
Number of shares (average of the second quarter
|
52.017.376
|
52.017.376
|
51.964.438
|
+ 0,1 %
|
(1) The shareholding of the Delhaize Group in Delhaize America increased to 52.69 % at the end of June 2000 compared to 50.95 % at the end of March 2000. The average shareholding for the second quarter 2000 is 51.39 %.
Mega-Image is fully consolidated since May 1, 2000.
(2) + 6.2 % at identical currency rates.
(3) - 1.3 % at identical currency rates.
(4) Comparative figures have been revised to reflect the change in the method of depreciation of the goodwill (40 years instead of 20 years for mature economies)
(5) The denominator is the average number of shares in the second quarter.
|
COMPANIES' RESULTS
|
Sales
|
Cash flow from operations
|
|
(in million)
|
2nd
Q 2000
|
2nd
Q 1999
|
2000/1999
|
2nd
Q 2000
|
2nd
Q 1999
|
2000/1999
|
|
Delhaize
America (1) USD
|
2.647
|
2.509
|
+5,5%
|
192,1
|
196,3
|
+2,1%
|
|
Super
Discount Markets (1) USD
|
73
|
69
|
+5,8%
|
1,4
|
1,5
|
-6,7%
|
|
Delhaize
Belgique (2)
BEF
|
32.173
|
30.421
|
+5,8%
|
1.663,6
|
1.208,0
|
+37,7%
|
|
Alfa-Beta
(2)
GRD
|
41.313
|
36.658
|
+12,7
|
2.398,1
|
2.022,2
|
+18,6%
|
|
Delvita
(2)
CZK
|
3.444
|
3.100
|
+11,1%
|
212,6
|
230,6
|
-7,8%
|
|
Mega-Image
(3)
ROL
|
82.550
|
-
|
-
|
3.878
|
-
|
-
|
|
P.G.
(2)
FRF
|
592
|
550
|
+7,6%
|
17,0
|
30,1
|
-43,4
|
|
Asie
EUR
|
54
|
33
|
+63,0%
|
-0,4
|
0,9
|
n.a.
|
(1) Average rate second quarter 1999: 1 USD = 38.1369 BEF (EUR 0.9454) - Average rate second quarter 2000: 1 USD = 43.1708 BEF (EUR 1.0702)
(2) Including sales taxes.
(3) May and June 2000.
|
NUMBER OF OUTLETS
|
End 2000 Planned
|
First half 2000
|
End 1st half 2000
|
End of 1999
|
|
U.S.A. Food Lion, Kash n' Karry
|
1.343
|
1.300
|
1.285
|
1.276
|
|
Hannaford
|
104
|
-
|
-
|
-
|
|
Cub Foods, Save-a-Lot
|
30
|
22
|
20
|
20
|
|
Belgique
Supermarchés Delhaize “Le Lion”
|
116
|
115
|
115
|
115
|
|
AD Delhaize, Superette
|
271
|
259
|
256
|
251
|
|
Delhaize 2 / City
|
15
|
15
|
15
|
14
|
|
Di
|
126
|
117
|
116
|
116
|
|
Tom & Co
|
80
|
67
|
60
|
57
|
|
Shop ‘n Go
|
10
|
5
|
-
|
-
|
|
Grèce
Alfa-Beta
|
54
|
52
|
49
|
46
|
|
Rép.
tchèque Delvita, Sama
|
100
|
99
|
99
|
99
|
|
Slovaquie
Delvita
|
17
|
15
|
14
|
14
|
|
Roumanie
Mega-Image
|
10
|
8
|
-
|
-
|
|
Thaïlande
Food Lion
|
21
|
14
|
14
|
13
|
|
Indonésie
Super Indo
|
20
|
15
|
14
|
14
|
|
Singapour
Shop N Save
|
30
|
26
|
25
|
25
|
|
Group Subtotal
|
2.347
|
2.129
|
2.082
|
2.062
|
|
France
Stoc, Marché Plus (1)
|
48
|
48
|
50
|
50
|
|
Group Total
|
2.395
|
2.177
|
2.132
|
2.112
|
(1) P.G. will be diveted in January 2001.