Delhaize Group reports 9.6% operating profit increase
“Delhaize Group again performed well in the second quarter of 2007,” said Pierre-Olivier Beckers, President and Chief Executive Officer of Delhaize Group. In the second quarter of 2007, Delhaize Group successfully completed a restructuring of its debt, which substantially improved the company’s financing structure. Delhaize Group ended the Q2 of 2007 with a sales network of 2,495 stores, compared to 2,476 at the end of last year (adjusted for the divestitures of 132 Di and 97 Delvita stores in the first half of 2007).
“Excluding the one-time charge related to the Delhaize America debt tender, net profit from continuing operations would have increased by 35.6% at identical exchange rates. We continued to roll out successful sales-building initiatives, driving our top line growth as well as improvements in our sales mix and gross margins. This gives us confidence that we will deliver full year results at the higher end of our guidance range,” Beckers added.
In the second quarter of 2007, net cash provided by operating activities amounted to €245.9 million. Capital expenditures decreased to €147.6 million (including US$149.9 million for the US operations of Delhaize Group) primarily due to timing differences in store openings and remodeling activity with the previous year. Delhaize Group generated free cash flow of €196.1 million. The Group held €395.3 million cash and cash equivalents at the end of the second quarter.
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