BRUSSELS, Belgium, Feb. 21, 2002 (PRIMEZONE) -- Delhaize Group (Euronext Brussels:DELB)(NYSE:DEG), the Belgian international food retailer, reported today that in the fiscal year 2001 cash earnings per share increased by 18.2% to EUR 4.26 due to the continued sales growth, the integration of Hannaford Bros. and significant margin improvements both in the U.S. and Belgian operations.
-- Sales rise by 17.8% to EUR 21.4 billion
-- Cash flow from operations increase by 29.4% to EUR 1.65
billion
-- Increased cash flow margin to 7.7%
-- Cash earnings per share up by 18.2% to EUR 4.26
-- Net dividend increase by 5.9% to EUR 1.08
-- Delhaize Group expects to add 136 stores in 2002
-- Sales expected to increase by a mid single digit figure
-- Expected growth by 10 to 12% of cash earnings per share in 2002
"2001 was a year of transformation for Delhaize Group", said Pierre-Olivier Beckers, President and Chief Executive Officer. "The share exchange with Delhaize America, the listing on the New York Stock Exchange and the creation of a new management structure were milestones in the development of our Group. Nevertheless, management stayed focused on the day-to-day operations and the successful integration of Hannaford Bros. This resulted in solid sales and a major improvement of the profitability in both the U.S. and Belgian operations."
In 2001, Delhaize Group achieved sales of EUR 21.4 billion, an increase of 17.8% compared to 2000. Organic sales growth was 4.0%. Notwithstanding the economic slow down both in the United States and Europe, sales continued to grow in the existing stores by successful sales initiatives. Comparable store sales rose by 1.4% at Delhaize America and 4.9% in Belgium. Also the continued opening of new stores in all markets was an important driver of the organic sales growth. In 2001, Delhaize Group added 134 stores to its sales network, reaching a total of 2,444 stores at year end.
In 2001, Delhaize Group also continued successfully focusing on gross margin improvements, cost control, the generation of synergies and the exchange of best practices. As a result, the cash flow from operations of Delhaize Group grew by 29.4% to EUR 1.65 billion, or 7.7% of sales (7.0% in 2000). Delhaize America increased its cash flow from operations by 30.1% to 8.7% of sales, Delhaize Belgium by 17.9% to 5.4% of sales.
Due to the strong operational improvements in the different operating companies and the elimination of the minority interests at Delhaize America, Delhaize Group earned in 2001 EUR 339.0 million before goodwill amortization and exceptional income, compared to EUR 187.7 million in 2000. The effective tax rate rose to 53.2% (36.3% in 2000) because of the higher non-tax deductible goodwill amortization and exceptional charges.
In 2001, both amortization of goodwill and financial expenses increased due to the full year impact of the Delhaize America acquisition of Hannaford Bros. in July 2000 and the share exchange of Delhaize Group with Delhaize America in April 2001. In addition, Delhaize Group posted an exceptional charge for the closing of an Atlanta-based joint venture, Super Discount Markets, in which the Group held a 60% ownership, and charges related to its Delvita subsidiary in the Czech Republic. As a result, net earnings after goodwill amortization and exceptional income of Delhaize Group were EUR 149.4 million, or EUR 1.88 per share (EUR 160.7 million or EUR 3.09 per share in 2000).
At the Shareholders' General Meeting to be held on May 23, 2002, the Board of Directors will propose the payment of a dividend, after deduction of 25% Belgian withholding tax, of EUR 1.08 per share, a 5.9% increase over 2000.
At the end of 2001, Delhaize Group's net debt increased from EUR 4.6 billion to EUR 4.8 billion due to the appreciation of the U.S. dollar and an increase in operating leases. The net debt to equity ratio decreased from 160.0% at the end of 2000 to 127.3% because of the increase of Group equity from EUR 2.9 billion to EUR 3.8 billion as a consequence of the share exchange with Delhaize America.
In 2001, Delhaize Group generated EUR 455.8 million free cash flow after dividend payments. The working capital requirement improved by EUR 70.1 million, while capital expenditure totaled EUR 553.6 million or 2.6% of sales.
Outlook
"Building upon its fundamental transformation in 2001, Delhaize Group is now well placed to strengthen in 2002 both its top and bottom line", commented Pierre-Olivier Beckers. "The combination of the local strengths of the different banners with the global expertise of the Group, will allow Delhaize Group to continue to enlarge successfully its sales network, implement important sales and margin initiatives, and integrate the different acquisitions."
- At identical currencies, it is expected that sales of Delhaize Group will grow in 2002 by a mid single digit number (excl. discontinued operations) and cash earnings per share by 10 to 12%. - Delhaize Group plans capital expenditure of approximately EUR 715 million in 2002. The sales network is expected to grow by approximately 136 stores in 2002 to a total of 2,580 stores. - Comparable store sales growth of Delhaize America is estimated to be 1-2% for the year 2002. - Building upon its strong performance in 2001, Delhaize Belgium expects to maintain its operating cash flow margin at least at the same level as in 2001 while implementing a new commercial policy resulting in a decrease of average prices.
Fourth Quarter 2001 Results
In the fourth quarter of 2001, organic growth of Delhaize Group was 4.2%. Compared to 2000 figures adjusted for Delhaize America's results on a thirteen-week basis, sales of Delhaize Group grew by 1.5%. Due to a change in its financial calendar, Delhaize America only contributed 13 weeks to Delhaize Group's sales in the fourth quarter of 2001, against 16 weeks in 2000. As a result, in the fourth quarter of 2001, Delhaize Group's sales amounted to EUR 5.5 billion compared to EUR 6.2 billion in the fourth quarter of 2000.
Compared to 2000 figures adjusted for Delhaize America's results on a thirteen-week basis, cash flow from operations of Delhaize Group grew by 12.2% in the fourth quarter of 2001 to EUR 456.1 million (8.4% of sales), while cash earnings per outstanding share increased by 5.3% from EUR 1.16 to EUR 1.23. Net earnings were positively impacted by a EUR 19.4 million (net of minority interests) reversal of the provision for the closing of Super Discount Markets. In the fourth quarter of 2001, reported earnings after goodwill amortization and exceptional income of Delhaize Group were EUR 90.8 million or EUR 0.99 per share.
GEOGRAPHICAL OVERVIEW
United States
In 2001, Delhaize America successfully both reinforced its market share positions and increased its operating margins. The sales contribution of Delhaize America grew by 17.7% to USD 14.9 billion (EUR 16.6 billion). The consistent "Every Day Low Price" positioning complemented with focused promotions, and ongoing assortment adjustments and category management, resulted in a comparable store sales growth of 1.4%. In 2001, Delhaize America opened 47 new stores, and relocated or closed eight stores, resulting in a net increase of 39 stores. In addition, Delhaize America remodeled or expanded 145 supermarkets.
The gross margin of Delhaize America increased to 26.8% compared to 25.5% in 2000 through an improved sales mix, more selective promotions and the introduction of zone pricing at Food Lion. Cash flow from operations of Delhaize America increased by 30.1% to USD 1.3 billion (EUR 1.4 billion), or 8.7% of sales (7.9% in 2000). The integration of Hannaford Bros. continued as planned, and Delhaize Group is confident it will achieve the annual pre-tax synergies of approximately USD 75 million in the third full year after the July, 2000 acquisition.
The increased operational profitability and the elimination of the minority interests at Delhaize America led to a rise of 108.2% of the contribution of Delhaize America to the cash earnings of Delhaize Group, from USD 129.3 million (EUR 140.2 million) in 2000 to USD 269.1 million (EUR 300.4 million) in 2001. The contribution to Group net earnings amounted to USD 189.9 million (EUR 212.1 million) compared to USD 82.0 million (EUR 88.9 million) in 2000.
In 2002, Delhaize America expects to open 45 new supermarkets, and 11 stores will be relocated, resulting in a total number at the end of 2002 of 1,493 stores, a net increase of 34 outlets. Approximately 137 stores will be remodeled or expanded. The total net selling area is expected to grow in 2002 by approximately 3.0 %. Comparable store sales growth of Delhaize America is estimated to be 1-2% for the year 2002.
In 2001, Super Discount Markets achieved sales of USD 249.7 million (EUR 278.8 million). Cash flow from operations was USD -0.3 million (EUR -0.3 million) and cash earnings were USD -3.7 million (EUR -4.2 million). After a strategic review of its operations, Delhaize Group initiated the closure of the 19 supermarkets operated by Super Discount Markets in the fourth quarter of 2001.
Europe
In 2001, Delhaize Belgium sales grew by 7.7% to EUR 3.2 billion due to the growth of the store network and successful sales initiatives in its existing stores. The sales network was extended by 60 stores while comparable store sales rose by 4.9%. The market share of Delhaize Belgium increased by approximately 0.6 percentage point to 24.6% (source: A.C. Nielsen).
The three-year plan launched in 1999 to improve the Belgian profitability through gross margin and cost improvements succeeded in increasing the Belgian operating cash flow margin from 4.0% in 1998 to 5.4% in 2001. The operating cash flow of Delhaize Belgium grew in 2001 by 17.9% to EUR 173.9 million. In the fourth quarter of 2001, the operating cash flow of Delhaize Belgium increased by 13.2% to 6.1% of sales, exceeding the target of 5.5%. In 2001, cash earnings of Delhaize Belgium grew by 25.8% to EUR 85.1 million.
In 2002, the sales network of Delhaize Belgium is expected to grow by 61 stores, including two Delhaize "Le Lion" supermarkets, to reach a total of 736 stores at year-end. The major sales initiative in 2002 is the launch in the beginning of the year of a new commercial policy leading to a more limited number of promotions and consistently lower everyday prices.
In 2001, sales in the other European operations of Delhaize Group (Greece, Czech Republic, Slovakia and Romania) increased by 13.7% to EUR 1.1 billion, passing for the first time the mark of EUR 1 billion. The sales increase was positively influenced by the acquisition in early 2001 of the Greek food retailer Trofo, which was partially offset by the divestiture of the French subsidiary P.G. in 2000. In 2001, Delhaize Group increased the number of European stores outside Belgium by 47 to a total of 224 at the end of 2001.
In 2001, the cash flow from operations of this Delhaize Group division amounted to EUR 46.6 million compared to EUR 51.3 million in 2000. The decrease was due to the divestiture in 2000 of the French company P.G. and the inherited lower profitability of Trofo. In 2001, cash earnings of the other European operations of Delhaize Group decreased from EUR 6.3 million to EUR -6.8 million due to the restructuring of Delvita and integration costs for Trofo.
In 2002, the sales network of the European operations of Delhaize Group will be enlarged by 11 supermarkets. This will bring the total to 235 stores, including 105 in Greece, 98 in the Czech Republic, 17 in Slovakia and 15 in Romania. In 2002, the management of Alfa-Beta will focus on the completion of the Trofo integration and the Delvita management on the remodeling of the largest part of the store network. On February 14, 2002, Delvita launched 25 fully remodeled supermarkets according to its new concept focused on fresh products and services.
Asia
In 2001, the operations of Delhaize Group in Asia reported sales growth of 20.4% to EUR 187.0 million (with 100% of Shop N Save, sales would have been EUR 264.1 million). Eighteen supermarkets were added to make a total of 86 supermarkets, including 26 in Thailand, 29 in Indonesia and 31 in Singapore. Cash flow from operations of the Asian activities of Delhaize Group amounted to EUR 2.3 million compared to EUR -0.9 million in 2000. In Asia, Delhaize Group cash earnings remained unchanged at EUR -3.6 million. In 2002, Delhaize Group expects to increase its sales network in Asia by 30 outlets to a total of 116 supermarkets.
DELHAIZE GROUP
Delhaize Group is a Belgian food retailer listed on Euronext Brussels and the New York Stock Exchange. At the end 2001, Delhaize Group's sales network consisted of 2,444 stores in ten countries on three continents. In 2001, Delhaize Group posted EUR 21.4 billion in sales and cash earnings of EUR 339.0 million. Delhaize Group employs approximately 146,000 people.
SHAREHOLDERS' AGENDA
Press release - 2002 first quarter results April 26, 2002 Final date for depositing shares for the Annual Shareholders Meeting May 16, 2002 Annual Shareholders Meeting May 23, 2002 Dividend payment May 27, 2002 Press release - 2002 second quarter results August 1, 2002 Press release - 2002 third quarter results October 25, 2002
This press release is available in English, French and Dutch. You can also find it on the recently renewed web site http://www.delhaizegroup.com. More detailed information on the 2001 sales, store network and selling area, as well as the 2002 opening program is available in the sales press release of January 9, 2002, to be consulted on the web site. Questions can be sent to investor@delhaizegroup.com.
The Delhaize Group management will comment on the financial year 2001 results during an investors' meeting starting February 21, 2002 at 3 p.m. (CET). The meeting will be broadcast live over the internet at http://www.delhaizegroup.com. Click on the button "Web cast Events" to access and follow the live presentation. By clicking on the appropriate button, you will be able to submit simultaneously your written questions to the management. The presentation can be downloaded from the web site. An on-demand replay of the web cast will be available after the investors' meeting at http://www.delhaizegroup.com.
Full Year 2001 Figures (Audited)
INCOME STATEMENT (1)
(in millions of EUR) 2001 2000 2001/2000
Sales 21,395.9 18,168.2 +17.8% (2)
EBITDA (FIFO) 1,649.2 1,274.5 +29.4%
EBITDA margin 7.7% 7.0% -
Depreciation (561.4) (454.0) +23.7%
Amortization of
goodwill and
intangibles (3) (158.0) (51.5) +206.8%
Store closings in the
normal course of
business (4) (8.5) (29.5) -71.3%
Operating result (EBIT) 921.3 739.5 +24.6%
EBIT margin 4.3% 4.1% -
Financial income /
(expense) (464.3) (296.2) +56.7%
Earnings before income
taxes and exceptional
items 457.0 443.3 +3.1%
Other income / (expense) (0.6) 2.1 N.A.
Exceptional income /
(expense) (5) (95.8) (43.4) N.A.
Earnings before
income taxes 360.6 402.0 -10.3%
Income taxes (6) (191.8) (145.7) +31.6%
Net earnings from
consolidated
companies 168.8 256.3 -34.2%
Minority interests (5) (19.3) (95.6) -79.8%
Reported earnings 149.4 160.7 -7.0%
Cash earnings 339.0 187.7 +80.6%
Reported EPS (in EUR) 1.88 3.09 -39.2%
Cash EPS (in EUR) 4.26 3.61 +18.2% (7)
Net dividend (in EUR) 1.08 1.02 +5.9%
Weighted average number
of shares outstanding 79,494,100 52,022,909 +52.8%
Number of shares
outstanding at
year-end (8) 92,094,252 52,031,725 +77.0%
(1) Delhaize America is consolidated at 100% since April 26,
2001. Hannaford Bros. is consolidated since July 31, 2000, Mega
Image since May 2000 and Trofo since January 2001. P.G. is
consolidated until September 2000 and Super Discount Markets
until November 12, 2001.
(2) Organic sales growth: + 4.0%.
(3) After an external appraisal of the assets and liabilities of
Delhaize America, the goodwill recognized in the share exchange
with Delhaize America is EUR 1.9 billion, which is amortized over
a period of 40 years.
(4) In 2001, Delhaize America closed 8 stores in the normal course of
business compared to 15 stores in 2000.
(5) In 2001, Delhaize Group recorded an exceptional expense of
EUR 95.8 million (EUR 70.2 million, net of taxes and minority
interests) related to the closing of the stores of Super Discount
Markets, the share exchange with Delhaize America, the
acquisition of Hannaford Bros. and a review of assets by Delvita.
In 2000, Delhaize Group recorded an exceptional expense of
EUR 43.4 million (income of EUR 8.9 million, net of taxes
and minority interests) related to the closing of 13 American
stores and costs related to the acquisition of Hannaford Bros.
(6) The tax-deductible one-time costs related to the closing of 13
American stores and the Hannaford acquisition influenced income
taxes favorably in 2000. In 2001, Delhaize Group recorded
significant non-tax deductible one-time charges for Super
Discount Markets and Delvita, while Delhaize America reviewed its
estimated taxes for the whole year upward.
(7) +15.0% at identical currency rates.
(8) In 2001, Delhaize Group bought back 575,300 own shares, issued
40,360,979 shares and re-issued 276,848 shares. At the end of
2001, Delhaize Group owned 298,452 own shares.
GEOGRAPHICAL CONTRIBUTION
Cash Flow from Operations
(in millions) 2001 2000 2001/2000 % of
Sales
United States (1) USD 1,294.7 1,001.1 +29.3% 8.6%
of which Delhaize America 1,295.0 995.5 +30.1% 8.7%
Belgium EUR 173.9 147.5 +17.9% 5.4%
Rest of Europe (2) EUR 46.6 51.3 -9.1% 4.3%
Asia (3) EUR 2.3 (0.9) N.A. 1.2%
Corporate (4) EUR (19.3) (9.6) -102.5% -
TOTAL EUR 1,649.2 1,274.5 +29.4% 7.7%
GEOGRAPHICAL CONTRIBUTION Cash Earnings
(in millions) 2001 2000 2001/2000
United States (1) USD 265.4 128.9 +105.9%
of which Delhaize America 269.1 129.3 +108.2%
Belgium EUR 85.1 67.6 +25.8%
Rest of Europe (2) EUR (6.8) 6.3 N.A.
Asia (3) EUR (3.6) (3.6) +0.5%
Corporate (4) EUR (31.9) (22.5) -42.1%
TOTAL EUR 339.0 187.7 +80.6%
(1) Delhaize America is consolidated at 100% since April 26, 2001.
Hannaford Bros. is consolidated since July 31, 2000, Mega Image
since May 2000 and Trofo since January 2001. P.G. was
consolidated until September 2000 and Super Discount Markets
until November 12, 2001. Average exchange rate 2000:
EUR 1 = USD 0.9217 - Average exchange rate 2001:
EUR 1 = USD 0.8956.
(2) Alfa-Beta (Greece), Delvita (Czech Republic and Slovakia) and
Mega Image (Romania). The 2000 results include P.G. (France),
that was divested in September 2000. The 2001 results include
Trofo (Greece), that was acquired in January 2001.
(3) Food Lion Thailand, Super Indo (Indonesia) and Shop N Save
(Singapore).
(4) The increase of corporate costs is due to the establishment of an
international group structure after the share exchange.
BALANCE SHEET
(in millions of EUR) December 31, 2001 December 31, 2000
Assets
Fixed assets 9,135.1 7,487.4
Goodwill 3,445.9 3,050.2
Other intangible
assets 1,437.9 618.6
Tangible assets 4,216.9 3,792.2
Financial assets 34.4 26.4
Current assets 2,950.7 2,910.3
Inventories 1,861.7 1,864.4
Receivables and
other assets 679.6 772.8
Treasury shares 17.5 -
Cash and short-term
investments 391.9 273.1
Total Assets 12,085.8 10,397.7
Liabilities
Group equity 3,751.6 2,874.4
Shareholder's equity 3,716.0 1,364.7
Minority interests 35.6 1,509.7
Provisions and deferred
tax liabilities 993.3 578.6
Long-term debt 4,546.2 1,350.2
of which financial
debt 4,529.9 1,338.8
Current liabilities 2,794.7 5,594.5
of which financial
liabilities 637.8 3,523.3
Total liabilities 12,085.8 10,397.7
Net debt 4,775.9 4,589.0
Net debt to equity ratio 127.3% 160.0%
EARNINGS RECONCILIATION
(in millions of EUR) 2001 2000 2001/2000
Reported earnings 149.4 160.7 -7.0%
Add back:
Store closings in the
normal course of business +8.5 +29.5
Taxes and minority
interests on store
closings -4.0 -20.5
Amortization of goodwill
and intangibles +158.0 +51.5
Taxes and minority
interests on amortization
of goodwill and intangibles -43.1 -24.6
Exceptional result +95.8 +43.4
Taxes and minority interests on
exceptional income / (expense) -25.6 -52.3
Cash earnings 339.0 187.7 +80.6%
EARNINGS RECONCILIATION
(in millions of EUR) 4th Q 2001 4th Q 2000 2001/2000
Reported earnings 90.8 66.7 +36.2%
Add back:
Store closings in the
normal course of business +2.6 +0.6
Taxes and minority
interests on store closings -1.0 -0.4
Amortization of goodwill
and intangibles +59.6 +32.2
Taxes and minority
interests on amortization
of goodwill and
intangibles -19.7 -15.9
Exceptional result -55.3 -3.1
Taxes and minority
interests on exceptional
income / (expense) +35.9 -20.6
Cash earnings 112.9 59.5 +89.9%
CASH FLOW STATEMENT
(in millions of EUR) 2001 2000
Operating Activities
Income before minority
interests 168.8 256.3
Adjustments for
non-cash items 1,302.5 856.7
Changes in working
capital requirement 70.1 (82.0)
Additions to provisions
for liabilities
and deferred taxation 59.3 62.9
Interests paid (367.7) (269.0)
Income taxes paid (24.5) (154.4)
Net cash provided by
operating activities 1,208.5 670.5
Investing Activities
Purchase of shares in
consolidated companies,
net of cash and cash
equivalents acquired (69.9) (2,949.0)
Purchase of intangible,
tangible and financial assets,
net of sales (546.2) (453.7)
Sale of shares in consolidated
companies, net of cash and
cash equivalents disposed of - 71.0
Other investing activities 7.8 1.3
Net cash used in investing
activities (608.3) (3,330.4)
Cash flow before financing
activities 600.2 (2,660.0)
Financing Activities
Proceeds from the exercise of
share warrants and stock options 17.1 5.6
Treasury shares repurchased (36.2) -
Additions to (repayments of)
long-term loans (net of direct
financing costs) 2,834.8 (76.1)
Additions to (repayments of)
short-term loans (2,892.4) 2,703.3
Dividends and directors'
remuneration paid (incl. div.
from subs to minority interests) (144.4) (117.2)
Loss on rate-lock related
to Delhaize America long-term bond (239.0) -
Net cash provided by (used-in)
financing activities (460.1) 2,515.6
Effect of foreign exchange
translation differences and change
in scope of consolidation 10.8 14.5
Net increase (decrease) in cash and
cash equivalents 150.9 (129.9)
Cash & cash equivalents at
beginning of period 233.9 363.8
Cash & cash equivalents at
end of period 384.8 233.9
Free cash flow after dividend
payments 455.8 (2,777.2)
Fourth Quarter 2001 Figures (Unaudited)
INCOME STATEMENT (1)
(in millions of EUR) 4th Q 2001 4th Q 2000 2001/2000
Sales 5,452.3 6,223.8 -12.4% (2)
EBITDA (FIFO) (4) 456.1 463.5 -1.6%
EBITDA margin 8.4% 7.5% -
Depreciation (152.2) (164.7) -7.6%
Amortization of goodwill
and intangibles (3) (59.6) (32.2) +85.2%
Store closings in the
normal course of
business (4) (2.6) (0.6) N.A.
Operating result (EBIT) 241.7 266.0 -9.2%
EBIT margin 4.4% 4.3% -
Financial income /
(expense) (113.8) (126.0) -9.7%
Earnings before income
taxes and exceptional
items 127.9 140.0 -8.6%
Other income /
(expense) (1.6) 0.4 -
Exceptional income /
(expense) (5) 55.3 3.1 -
Earnings before
income taxes 181.6 143.5 +26.6%
Income taxes (54.0) (48.9) +10.4%
Net earnings from
consolidated
companies 127.6 94.6 +34.9%
Minority interests (36.8) (27.9) +31.8%
Reported earnings 90.8 66.7 +36.2%
Cash earnings 112.9 59.5 +89.9%
Reported EPS (in EUR) 0.99 1.28 -23.0%
Cash EPS (in EUR) 1.23 1.14 +7.3% (6)
Weighted average number
of shares outstanding 92,093,025 52,031,725 +77.0%
Number of shares
outstanding at the
end of the 4th
quarter (7) 92,094,252 52,031,725 +77.0%
(1) Delhaize America is fully consolidated since April 26, 2001.
Trofo is consolidated since January 1, 2001. Super Discount
Markets is consolidated until November 12, 2001.
(2) In the fourth quarter of 2000, Delhaize America contributed 16
weeks to the Delhaize Group sales, in the fourth quarter of 2001
only 13 weeks. Excluding this calendar effect as well as
acquisitions, divestitures and currency fluctuations, organic
sales growth of Delhaize Group was 4.2% in the fourth quarter of
2001.
(3) After an external appraisal of the assets and liabilities of
Delhaize America, the goodwill recognized in the share exchange
with Delhaize America is EUR 1.9 billion, which is amortized over
a period of 40 years.
(4) In the fourth quarter of 2001, Delhaize America closed 1 store in
the normal course of business compared to 6 stores in the fourth
quarter of 2000.
(5) In the fourth quarter of 2001, Delhaize Group recorded an
exceptional income of EUR 55.3 million (EUR 19.4 million, net of
taxes and minority interests) due to a reversal of the provision
for the closing of Super Discount Markets.
(6) +7.7% at identical currency rates.
(7) In the fourth quarter of 2001, Delhaize Group bought back 23,100
own shares and re-issued 23,306 shares.
GEOGRAPHICALCONTRIBUTION
Cash Flow from Operations
(in millions) 4th Q 2001 4th Q 2000
United States (1) USD 354.9 362.6
of which Delhaize
America (2) USD 355.3 360.9
Belgium EUR 52.0 45.9
Rest of Europe (3) EUR 17.5 13.7
Asia (4) EUR 0.5 (0.8)
Corporate EUR (10.3) (3.2)
TOTAL EUR 456.1 463.5
(in millions)
United States USD 2001/2000 % of Sales
of which Delhaize -2.1% 9.3%
America USD
Belgium EUR -1.6% 9.5%
Rest of Europe EUR +13.2% 6.1%
Asia EUR +27.8% 5.6%
Corporate EUR N.A. 0.9%
TOTAL EUR N.A. -
-1.6% 8.4%
(1) Super Discount Markets was consolidated until November 12, 2001.
Average exchange rate fourth quarter 2000: EUR 1 = USD 0.8683
Average exchange rate fourth quarter 2001: EUR 1 = USD 0.8959.
(2) Thirteen-week period in 2001 compared to a sixteen-week period in
2000.
(3) Alfa-Beta (Greece), Delvita (Czech Republic and Slovakia) and
Mega Image (Romania). The results of 2001 include Trofo
(Greece), that was acquired in January 2001.
(4) Food Lion Thailand, Super Indo (Indonesia) and Shop N Save
(Singapore).
Pro-forma(1) Fourth Quarter 2001 Figures (Unaudited)
INCOME STATEMENT (2)
(in millions of EUR) Actual 4th Q Pro forma 4th Q 2001/2000
2001 2000
Sales 5,452.3 5,372.1 +1.5% (3)
EBITDA (FIFO) 456.1 406.6 +12.2%
EBITDA margin 8.4% 7.6% -
Depreciation (152.2) (139.8) +8.8%
Amortization of
goodwill and
intangibles (4) (59.6) (26.7) +123.6%
Store closings in
the normal course
of business (5) (2.6) (0.6) N.A.
Operating result
(EBIT) 241.7 239.5 +0.9%
EBIT margin 4.4% 4.5% -
Financial income /
(expense) (113.8) (102.9) +10.5%
Earnings before
income taxes and
exceptional items 127.9 136.6 -6.3%
Other income /
(expense) (1.6) 3.1 -
Exceptional income /
(expense) (6) 55.3 6.3 N.A.
Earnings before
income taxes 181.6 146.0 +24.4%
Income taxes (54.0) (42.4) +27.5%
Net earnings from
consolidated
companies 127.6 103.6 +23.2%
Minority interests (36.8) (32.4) +13.6%
Reported earnings 90.8 71.2 +27.5%
Cash earnings 112.9 60.6 +86.4%
Reported EPS (in EUR) 0.99 1.37 -28.0%
Cash EPS (in EUR) 1.23 1.16 +5.3% (7)
Weighted average
number of shares
outstanding 92,093,025 52,031,725 +77.0%
Number of shares
outstanding at the
end of 4th Q (8) 92,094,252 52,031,725 +77.0%
(1) Fourth quarter 2000 figures of Delhaize Group adjusted for the
change in financial calendar by Delhaize America from 16 weeks in
the fourth quarter of 2000 to 13 weeks in the fourth quarter of
2001.
(2) Delhaize America is fully consolidated since April 26, 2001.
Trofo is consolidated since January 1, 2001. Super Discount
Markets is consolidated until November 12, 2001.
(3) Organic sales growth: + 4.2%.
(4) After an external appraisal of the assets and liabilities of
Delhaize America, the goodwill recognized in the share
exchange with Delhaize America is EUR 1.9 billion, which is
amortized over a period of 40 years.
(5) In the fourth quarter of 2001, Delhaize America closed 1 store in
the normal course of business compared to 6 stores in the fourth
quarter of 2000.
(6) In the fourth quarter of 2001, Delhaize Group recorded an
exceptional income of EUR 55.3 million (EUR 19.4 million, net of
taxes and minority interests) due to a reversal of the provision
for the closing of Super Discount Markets.
(7) + 5.8 % at identical currency rates.
(8) In the fourth quarter of 2001, Delhaize Group bought back 23,100
own shares and re-issued 23,306 shares.
GEOGRAPHICALCONTRIBUTION
(1) Cash Flow from Operations
(in millions) 4th Q 2001 4th Q 2000
United States (2) USD 354.9 309.0
of which Delhaize
America USD 355.3 307.3
Belgium EUR 52.0 45.9
Rest of Europe (3) EUR 17.5 13.7
Asia (4) EUR 0.5 (0.8)
Corporate EUR (10.3) (3.2)
TOTAL EUR 456.1 406.6
(in millions)
United States USD 2001/2000 % of Sales
of which Delhaize +14.8% 9.3%
America USD
Belgium EUR +15.6% 9.5%
Rest of Europe EUR +13.2% 6.1%
Asia EUR +27.8% 5.6%
Corporate EUR N.A. 0.9%
TOTAL EUR N.A. -
+12.2% 8.4%
(1) Fourth quarter 2000 figures of Delhaize America and Delhaize
Group adjusted for the change in financial calendar by Delhaize
America from 16 weeks in the fourth quarter of 2000 to 13 weeks
in the fourth quarter of 2001.
(2) Super Discount Markets was consolidated until November 12, 2001.
Average exchange rate fourth quarter 2000: EUR 1 = USD 0.8683 -
Average exchange rate fourth quarter 2001: EUR 1 = USD 0.8959.
(3) Alfa-Beta (Greece), Delvita (Czech Republic and Slovakia) and
Mega Image (Romania). The results of 2001 include Trofo (Greece),
that was acquired in January 2001.
(4) Food Lion Thailand, Super Indo (Indonesia) and Shop N Save
(Singapore).
Definitions
-- Cash flow from operations: EBITDA or earnings before interest,
taxes, depreciation, amortization, store closing charges in the
normal course of business and exceptional items
-- Cash earnings: reported earnings plus goodwill amortization, store
closing charges in the normal course of business and exceptional
items, net of taxes and minority interests
-- Cash EPS: cash earnings divided by the weighted average number of
shares outstanding during the corresponding period
-- Comparable store sales: sales from the same stores, including
relocations and expansions
-- Free cash flow: cash flow before financing activities less
dividend payments
-- Net debt: long-term financial liabilities (over one year) plus
short-term financial liabilities, minus short-term investments
and cash
-- Organic sales growth: sales growth excluding sales from
acquisitions, divestitures, currency fluctuations and calendar
differences
Auditor's Approval
The statutory auditor, Deloitte & Touche, has confirmed that his audit work, which is substantially complete, has not revealed any significant matters requiring adjustments to the accounting information included in the press release.
Safe Harbor
Some of the statements in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about strategic options, future strategies and the anticipated benefits of these strategies. These statements are based on Delhaize Group's current expectations. Delhaize Group's actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in Delhaize Group's Annual Report on Form 20-F for the year ended December 31, 2000 and other periodic filings made by Delhaize Group with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group disclaims any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.