Today, Belgian retailer Delhaize published strong results for its first quarter of 2006. Compared to last year’s first quarter, sales in the first three months of 2006 grew by 11.3 per cent at actual and 4.6 per cent at identical exchange rates. Net profits increased by 19.7 per cent (actual exchange rates) and 12.2 per cent at identical exchange rates. Especially its U.S. assets performed well, backed by a stronger US dollar. Delhaize confirms its full-year guidance: 4 to 5 per cent increase in net sales and net profits growing between 8 and 12 per cent in 2006.

In the U.S. sales increased by 2.9 per cent which is mainly driven by Food Lion. Comparable store sales increased by 1.7 per cent. In Belgium sales increased by 9.1 per cent sales following the acquisition of Cash Fresh. Comparable store sales grew by 0.2 per cent, reversing the negative trend of the last three quarters. In Greece sales momentum of the existing stores and addition of new stores led to an increase of sales by 9.6 per cent. Delhaize’s ‘emerging markets’ division posted a 7.2 per cent sales increase due to its performance in Romania and Indonesia. The Czech Republic remains a difficult market, but earlier this month Delhaize confirmed its intention to further invest in its Czech assets.

Referring to Delhaize’s main 2006 projects – mainly in the U.S. and Belgium – the retailer’s president and CEO Pierre Olivier Beckers said: “These projects and our continued focus on executional excellence give us full confidence in the achievement of our plans for 2006.” The analyst from Bank DeGroof however makes reservations to this, referring to Delhaize’s sensitivity to dollar exchange fluctuations and a depreciating dollar in the current second quarter of 2006.