Delhaize, the Belgium-based retailer, today (10 March) posted a near 12% rise in profits for 2010 amid higher sales and a continued focus on costs.
At actual exchange rates, the company, which also runs stores in markets from the US to Indonesia, posted an 11.7% increase in annual net profit to EUR574m (US$793.7m). Fourth-quarter net profit was up 40.5% at EUR190m.
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Operating profit rose 8.7% to EUR1.02bn in 2010 and was up 38% in the last three months of the year to EUR307m.
Delhaize said that excluding EUR44m of costs linked to its restructuring in the US, store closures and impairment charges, operating profit was “stable” at identical exchange rates.
Revenues climbed 4.6% to EUR20.85bn in 2010; in the fourth quarter, Delhaize’s top line improved by 7.6% to EUR5.24bn.
Delhaize said it saw “strong” comparable-store sales growth from its namesake stores in its domestic market and from its Hannaford stores in the US.
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By GlobalData“2010 was the first year of our New Game Plan strategy,” president and CEO Pierre-Olivier Beckers. “During the year we improved our price competitiveness, successfully managed our operating expenses, stepped up our growth in our newer operations and maintained our solid operating margin. We are on track to achieve our ambitious EUR500m annual gross cost savings target by the end of 2012.”
Shares in Delhaize were up 3.52% at EUR59.42 at 12:40 GMT.
Click here for the full release from Delhaize.
