Sales increase by 17.8% to EUR 21.4 billion
BRUSSELS, Belgium, January 9, 2002 - Delhaize Group (Euronext Brussels: DELB, NYSE: DEG), the Belgian international food retailer, today reported an increase of sales in 2001 by 17.8% to EUR 21.4 billion. Delhaize Group's sales in the fourth quarter of 2001 amounted to EUR 5.5 billion, an increase of 1.5% over the comparable thirteen-week period in 2000.
In 2001, Delhaize Group achieved sales of EUR 21.4 billion compared to EUR 18.2 billion the prior year. These results include sales of the acquired companies Hannaford Bros. (since July 31, 2000) and Trofo (since January 1, 2001). Excluding acquisitions, divestitures and currency fluctuations, organic sales growth of Delhaize Group was 4.0% in 2001.
Compared to 2000 figures adjusted for Delhaize America's results on a thirteen-week basis, sales of Delhaize Group grew by 1.5% in the fourth quarter of 2001. Organic growth of Delhaize Group in the fourth quarter of 2001 was 4.2%, excluding acquisitions, divestitures, currency fluctuations and adjusted for a comparable number of weeks at Delhaize America. Due to a change in its financial calendar, Delhaize America only contributed 13 weeks to Delhaize Group's sales in the fourth quarter of 2001, against 16 weeks in 2000. As a result, in the fourth quarter of 2001, Delhaize Group's sales amounted to EUR 5.5 billion compared to EUR 6.2 billion in the fourth quarter of 2000.
At the end of 2001, Delhaize Group's sales network consisted of 2,444 stores, an increase by 134 stores (+5.8%) compared to the previous year. Total net selling area rose by 3.9% to 5.0 million square meters. Delhaize Group expects to increase its sales network in 2002 by 136 stores (+5.6%) to a total of 2,580 outlets. For 2002, Delhaize Group plans capital expenditure of EUR 715 million.
Geographical Overview
United States
In 2001, the contribution of Delhaize America to the sales of Delhaize Group was USD 14.9 billion (EUR 16.6 billion), an increase by 17.7% over 2000. Comparable store sales (which include relocations and expansions) rose by 1.4% during 2001.
In the thirteen-week period ended December 29, 2001, the sales contribution of Delhaize America stood at USD 3.8 billion (EUR 4.2 billion), a rise of 2.2% over the comparable thirteen-week period in the prior year. Comparable store sales for the thirteen-week period decreased by 0.5%. This decrease was partially attributable to a weak economy, particularly reflected in the results at Kash n' Karry in Florida, where the return of seasonal inhabitants has been delayed. December sales were negatively impacted versus prior year due to unseasonably warm weather and the mid-week holidays.
In 2001, Delhaize America increased the total net selling area by 3.8% to 44.8 million square feet (4.2 million square meters), finishing the year with 1,459 supermarkets. During 2001, Delhaize America opened 47 new stores, and relocated or closed 8 stores, resulting in a net increase of 39 stores. In addition, Delhaize America remodeled and expanded 145 supermarkets.
In 2002, Delhaize America expects to open 45 new supermarkets and 11 stores will be relocated, resulting in a total store number at the end of 2002 of 1,493 stores, an net increase of 34 outlets. Approximately 137 stores will be remodeled or expanded. The total net selling area is expected to grow in 2002 by approximately 3.0%.
In 2001, Super Discount Markets achieved sales of USD 249.7 million (EUR 278.8 million). During the fourth quarter of 2001, sales of Super Discount Markets amounted to USD 41.7 million (EUR 46.6 million). As announced in October 2001, Delhaize Group, after a strategic review of its operations, closed in the fourth quarter of 2001 the 19 Cub Foods supermarkets of Super Discount Markets.
Europe
Delhaize Belgium posted sales of EUR 3.2 billion in 2001, an increase by 7.7% over 2000. Comparable store sales grew by 4.9%. For the fourth quarter of 2001, sales increased by 5.9% to EUR 851.5 million. The fourth quarter 2001 comparable store sales, impacted by an industry wide labor dispute early December, rose by 3.9%.
In 2001, Delhaize Belgium increased its market share by approximately 0.6% to 24.6% (Source: A.C. Nielsen). The Belgian sales network was extended with 60 stores. The total net selling area grew by 7.3% to 538,000 square meters. In 2002, the sales network of Delhaize Belgium is expected to be enlarged by 61 stores, including two Delhaize 'Le Lion' supermarkets.
In 2001, sales in the other European operations of Delhaize Group (Greece, Czech Republic, Slovakia and Romania) increased by 13.8% to EUR 1.1 billion, passing for the first time the mark of EUR 1 billion. During the fourth quarter of 2001, sales in the other European operations of Delhaize Group amounted to EUR 311.4 million, 33.6% more than the comparable quarter in 2000.
In 2001, Delhaize Group increased the number of stores operated in its other European operations from a total of 177 to 224 stores. 104 of the 224 stores are located in Greece, 94 in the Czech Republic, 16 in Slovakia and 10 in Romania. The total net selling area grew by 45.5% to approximately 254,000 square meters. In 2002, the opening of 11 supermarkets is planned. This will bring the total to 235 stores in the other European operations of Delhaize Group.
Asia
In 2001, the contribution of the Asian operations to Delhaize Group's sales amounted to EUR 184.7 million, an increase of 18.9% versus the prior year. The sales in the fourth quarter of 2001 rose by 13.7% to EUR 51.0 million. In 2001, the Asian sales network of Delhaize Group was increased by 18 supermarkets to a total of 86 supermarkets. 26 of the 86 supermarkets are located in Thailand, 29 in Indonesia and 31 in Singapore. The total net selling area was enlarged by 22.3% to approximately 82,000 square meters. In 2002, Delhaize Group expects to increase its sales network in Asia by 30 supermarkets to a total of 116 stores.
Definitions
- Comparable store sales: sales from the same stores, including relocations and expansions
- Organic sales growth: sales growth excluding sales from acquisitions, divestitures and currency fluctuations
- Selling area: net selling area, excluding storage area. Net selling area = approximately 84% of gross selling area.
Financial Calendar
| Press release - 2001 results | February 21, 2002 |
| Press release - 2002 first quarter results | April 26, 2002 |
| Annual Shareholders Meeting | May 23, 2002 |
| Press release - 2002 second quarter results | August 1, 2002 |
| Press release - 2002 third quarter results | October 25, 2002 |
Delhaize Group
Delhaize Group is a Belgian food retailer listed on Euronext Brussels and the New York Stock Exchange. At the end 2001, Delhaize Group's sales network consisted of 2,444 stores in ten countries on three continents. In 2001, Delhaize Group posted EUR 21.4 billion in sales. Delhaize Group employs approximately 146,000 people.
This press release is available in English, French and Dutch. For more information, visit the Delhaize Group website at
www.delhaizegroup.com. Questions can be sent to
investor@delhaizegroup.com.
Click here for the Year 2001 Sales - Unaudited
Contacts
| Guy Elewaut: | + 32 (0) 2 412 29 48 |
| Geoffroy d'Oultremont: | + 32 (0) 2 412 83 21 |
| Amy Shue (U.S. investors): | + 1 (704) 633 8250, ext. 2529 |
| Ruth Kinzey (U.S. media): | + 1 (704) 633 8250, ext. 2118 |