Delhaize Releases its Q1 2016 Financial Results, Reporting Quadrupled Profits
BRUSSELS, BELGIUM - Investors waiting for the implementation of the Delhaize/Ahold merger were awoken with good news this morning. Delhaize has released its Q1 2016 financial results, showing an over 400% increase in net profits as the company heads into its $29 million merger later this year.
“We have started 2016 with further improving revenue trends,” Frans Muller, President and Chief Executive Officer of Delhaize Group, commented in a statement. “We realized a robust performance in our first quarter profitability with a 3.6% underlying operating margin. Although the group benefited from a slightly stronger gross margin mainly in the U.S., profitability was especially boosted by lower SG&A as a percentage of revenues in Belgium and Southeastern Europe.”
During this first quarter, ended March 31, Delhaize's net profit reached an impressive 109 million euros ($123 million), compared with just 28 million euros in Q1 2015. Total revenues for the company rose to 6.15 billion euros, up from 5.82 billion euros last year.
This undoubtedly has given investors even more of a reason to look forward to the impending merger with Ahold, which the company said is now its primary focus for fiscal 2016. Muller shared that Delhaize’s remaining major milestone is to receive approval from the U.S. Federal Trade Commission in order to be able to complete the transaction by mid-2016.
According to the release for Delhaize’s Q4, other highlights include:
- Revenue growth of 4.3% at identical exchange rates
- Comparable store sales growth of 2.6% in the U.S. (3.7% real growth), 2.9% in Belgium, and 10.8% in Southeastern Europe
- Group underlying operating profit of €221 million (+26.0% at identical exchange rates)
- Group underlying operating margin of 3.6% (3.9% in the U.S., 2.7% in Belgium, and 4.1% in Southeastern Europe)
Following the company's announcment, Delhaize's stock had risen more than 2%.
Will Ahold’s upcoming financial report yield similarly notable results? AndNowUKnow will continue to provide you with breaking retail and financial news.