Belgian food retailer Delhaize has repeated its projection for profit growth in the second half 2008, in spite of a worse-than-expected fall in first-quarter operating profit, as the weak dollar bit into earnings and project and fuel costs rose. Delhaize, which generates about 70% of its sales in the United States, has forecast that earnings before interest and taxes (EBIT) will grow by 6 to 8% this year and revenues by 4 to 5.5%, based on constant exchange rates of US$1.3705 to the euro.

Chief Executive Pierre-Olivier Beckers said Delhaize was still managing to pass on inflation to customers, except in Belgium and at its US chain Sweetbay where it had chosen to cap prices. In Belgium, Delhaize has lost market share to local rival Colruyt and hard discounters, Aldi and Lidl, and has responded with a number of price initiatives, notably by expanding own-label products.

The expansion of its own labels has been successful, notably in the US where an economic slowdown has led consumers to trade down from household brands to Delhaize's products, for which the supermarket group's margins are higher. Beckers added that the company hoped to keep customers buying Delhaize label products even when the economy picked up.