Belgian retailer Delhaize has raised its outlook for fiscal 2009 after expectation beating third-quarter profits were boosted by cost savings and promotions.
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Delhaize, which generates about 70% of sales in the US, said that EBIT rose 5.7%, climbing to EUR228m (US$336m) in the July-September quarter.
In the US, like-for-like sales were dented by food deflation and lower consumer spending, decreasing by 1.3%. However, in Belgium same-store sales were up 4.6%, the company revealed.
Delhaize also said that profits were lifted by its cost-cutting efforts. The Food Lion operator indicated that it is on-track to generate savings in the region of EUR100m this year, on the back of last year’s cuts of over EUR60m.
Looking to the full-year, Delhaize raised its profit guidance to a 1-4% range. Previously, the top-end of Delhaize’s guidance was 3%.
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