Belgian food retailer, Delhaize Group, (DEG), Wednesday reported a profit for the first quarter, compared to the loss it recorded during the comparable period last year. The profit was particularly helped by revenue growth at Delhaize America and Delhaize Belgium. The company also said its Chief Executive, Pierre- Olivier Beckers plans to retire by end of this year.
For the three-month period, the firm reported pre-tax profit of 65 million euros, compared with the loss of 21 million euros during the corresponding quarter last year.
Group share in net profit for the period was 61 million euros or euro 0.60 per share, compared with loss of 3 million euros or euro 0.02 per share during the same period previous year.
Revenues generated for the period were 5521 million euros, compared with prior year's figure of 5442 million euros. Delhaize America reported revenues of 3536 million euros, compared with 3527 million euros last year. Sales at Belgium rose up to 1220 million euros compared with 1191 million euros last year.
Finance costs for the period dipped to 51 million euros from 65 million euros during the first quarter last year. Other operating expenses reduced to to 96 million euros compared with 140 million euros last year.
For the full year, the company expects operating profit of 775 million euros compared to 804 million euros in 2012, Reduction in net finance costs to approximately 210 million euros, Target capex of approximately 650 million euros, 200 store openings, and Average of approximately 500 million euros FCF per annum over 2013-2015.
In a separate statement, the firm announced that Pierre- Olivier Beckers, its President and Chief Executive Officer, intends to retire from his executive role by the end of this year and will continue to serve as a company director. The firm is on a lookout for the place of Beckers. Beckers joined Delhaize Group in 1983, has been a director of the company since 1995 and was appointed President and CEO in January 1999.
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