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Delhaize Releases its Q1 2016 Financial Results, Reporting Quadrupled Profits

Delhaize Releases its Q1 2016 Financial Results, Reporting Quadrupled Profits


BRUSSELS, BELGIUM
Wednesday, April 27th, 2016

So if you were an investor looking for decent return-on-investment in the retail industry, where would you put your money? If you answered Delhaize, you might want to suit up and hit the trade floor. Delhaize recently released its Q1 2016 financial results showing an over 400 percent increase in net profits for the Belgium-based grocery retailer.  

Frans Muller, CEO, Delhaize Group

Frans Muller, President and CEO of Delhaize Group, commented on the news in a press release, saying “We realized a robust performance in our first quarter profitability with a 3.6% underlying operating margin. Although the group benefited from a slightly stronger gross margin mainly in the U.S., profitability was especially boosted by lower SG&A as a percentage of revenues in Belgium and Southeastern Europe.”

Photo Credit: Defotoberg / Shutterstock.com

For the first quarter 2016, Delhaize's net profit totaled $123 million, compared with $31.7 million in the year prior. Revenue rose to $6.9 billion, up from $6.5 billion last year.

News of the soaring net profits comes ahead of its $29 million merger scheduled for later this year. Delhaize said that its upcoming merger with Ahold will be the primary focus for FY 2016. The last remaining major milestone for Delhaize in 2016 is receiving approval from the U.S. Federal Trade Commission.

According to the release for Delhaize’s Q4, other highlights include:

  • Revenue growth of 4.3 percent
  • Store sales growth of 2.6 percent in the U.S., 2.9 percent in Belgium, and 10.8 percent in Southeastern Europe
  • Group underlying operating profit of $250 million
  • Group underlying operating margin of 3.6 percent (3.9 percent in the U.S., 2.7 percent in Belgium, and 4.1 percent in Southeastern Europe)

As always, DeliMarket News will keep you updated on all the latest financial developments in the works.

Delhaize Group