SINT-JANS-MOLENBEEK - The Delhaize Group released its Q3 financial report on November 6th, 2014, revealing impressive growth both in terms of revenue and operating profit. While analysts quoted by Reuters only predicted an operating profit of €182 million, Delhaize revealed that it blew past these estimates by €10 million with an operating profit of €192 million (over $237 million) in Q3.

“In the U.S., comparable store sales growth was very strong at 5.3%, resulting from both continued good momentum at Food Lion and favourable, albeit temporary, competitive dynamics at Hannaford,” shared Frans Muller, President and Chief Executive Officer of Delhaize Group. “These positive volume trends resulted in a 10% increase in our U.S. underlying operating profit. In August, we have launched the first 31 Food Lion stores deploying our new 'Easy, Fresh & Affordable' strategy. Although it is too early to draw conclusions, they are experiencing good initial customer response. We will roll out the next 45 stores next week.”

Other highlights from the financial report include:

• Revenue growth of 3.3% at identical exchange rates (3.3% organic growth) and 5.9% revenue growth for Delhaize's United States operations.
• 5.3% same store sales growth in its United States stores. This result beat the expectations of analysts quoted by Reuters, who only anticipated 3.0% same store sales growth this quarter.
• 4.2% underlying operating margin in the United States.
• Free cash flow generation of €118 million.

In its Q3 financial report, Delhaize also revealed that it has agreed to sell its 66 Bottom Dollar Food stores to Aldi in the interest of focusing on its core base of operations in the United States. 

Congratulations on a strong Q3 performance, Delhaize!

Delhaize Group