Delhaize America reports first quarter sales of $4.4 billion, up 1.9%

BRUSSELS - Delhaize Group on Wednesday reported first quarter U.S. revenue growth of 1.9% to $4.4 billion for the period ended March 31. In the U.S., comparable store sales grew by 2.6%. 

 

“We have started 2016 with further improving revenue trends. In the U.S., although we continued to see deflation, we are also realizing ongoing solid 3.7% real growth," noted Fans Muller, Delhaize Group president and CEO. "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. We reported a negative free cash flow in the first quarter but we remain confident to generate a healthy free cash flow for the full year.”

 

The 2.6% U.S. comparable store sales growth was fueled by positive real growth at both Food Lion and Hannaford, despite fewer winter storms compared to last year. Retail inflation remained negative and was down 1.1% for the quarter.

 

Following shareholder approval for the merger with Royal Ahold obtained on March 14, the company's main focus for this year is to complete the merger on schedule, Muller said. "The 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.”