Delhaize Group SA — Q1 2016 Earnings Presentation
12 slides from Delhaize Group SA's earnings presentation, Apr 27, 2016
Slide 1: Q1 2016 results
Q1 2016 results April 27, 2016
Slide 2: Forward looking statements
Forward looking statements FORWARD-LOOKING STATEMENTS This communication contains forward-looking statements, which do not refer to historical facts but refer to expectations based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause ac
Slide 3: Highlights – Q1 2016
Highlights – Q1 2016 • Positive comparable store sales growth (+2.6%) and real growth (+3.7%) US despite deflation • Roll-out of Easy, Fresh & Affordable in 142 Charlotte stores on schedule • Market share increased by 50 bps compared to Q1 15 to 24.3% • Performance sustained by Affiliated network Be
Slide 4: Financial results – Q1 2016
Financial results – Q1 2016 Q1 % Growth (€ in Millions) 2015 2016 Actual Rates Identical Rates Revenues 5,820 6,153 5.7% 4.3% Gross Margin 24.4% 24.5% 10 bps 8 bps SG&A as % of revenues 21.8% 21.3% (50 bps) (52 bps) Underlying Operating Profit / 173 221 27.9% 26.0% Margin 3.0% 3.6% 62 bps 62 bps Net
Slide 5: EBITDA
EBITDA (€ in Millions) Q1 EBITDA Q1 Underlying EBITDA At Q1 2015 317 339 Identical +16.2% +13.9% Rates Q1 2016 368 386 Q1 2015 317 339 At Actual +17.9% +15.6% Rates Q1 2016 373 391 5
Slide 6: Delhaize America – comparable store sales growth and revenue growth
Delhaize America – comparable store sales growth and revenue growth Delhaize U.S. -1.1% Q1 2016 -0.5% +3.7% -0.2% +2.6% +1.9% Real growth retail inflation CSS Calendar Expansion Organic Impact revenue growth 6
Slide 7: Delhaize U.S. – underlying operating margin
Delhaize U.S. – underlying operating margin Delhaize U.S. Underlying Operating Margin Q1 2015 3.8% - Q1 margin impacted by: • (+) Good sales momentum at both banners • (+) Lower shrink in fresh especially at Food Lion Q1 2016 3.9% • (+) Lower cost of products in some categories • (-) Increased labor
Slide 8: Delhaize Belgium – comparable store sales growth and revenue growth
Delhaize Belgium – comparable store sales growth and revenue growth Delhaize Belgium +0.1% +1.0% Q1 2016 +4.0% +2.9% CSS Calendar Impact Expansion Organic revenue growth 8
Slide 9: Delhaize Belgium – underlying operating margin
Delhaize Belgium – underlying operating margin Delhaize Belgium Underlying Operating Margin Q1 2015 1.4% - Q1 margin impacted by: • (+) Higher revenues • (+) Transformation Plan savings • (-) Higher shrink in supermarkets Q1 2016 2.7% • (-) Transformation Plan implementation 9
Slide 10: Southeastern Europe – comparable store sales growth and revenue growth
Southeastern Europe – comparable store sales growth and revenue growth Southeastern Europe +5.7% Q1 2016 +0.5% +17.0% +10.8% CSS Calendar Impact Expansion Organic revenue growth 10
Slide 11: Southeastern Europe – underlying operating margin
Southeastern Europe – underlying operating margin Southeastern Europe Underlying Operating Margin Q1 2015 2.3% - Q1 margin impacted by: • (+) Strong revenues across the segment • (+) Good cost control overall Q1 2016 4.1% • (+) Higher gross margin 11
Slide 12: 2016 strategic priorities and outlook
2016 strategic priorities and outlook • Complete the merger with Ahold by mid 2016 as scheduled Group • Continued capital discipline as per our plan to spend €825 million • Focus on maintaining CSS momentum despite the lack of inflation • Remodel 142 Food Lion stores (Easy, Fresh & Affordable) US •