Financial Review
REVIEW
Income Statement
24 DELHAIZE GROUP ANNUAL REPORT '11
REVENUES (in billions of EUR)
2009 2010 2011
OPERATING MARGIN (in
2009 2010 2011
OPERATING PROFIT (in millions of EUR)
942 1°24
III
2009 2010 2011
NET PROFIT FROM CONTINUING
OPERATIONS (in millions of EUR)
576
III
2009 2010 2011
In 2011, Delhaize Group achieved rev
enues of EUR 21.1 billion. This repre
sents an increase of 4.6% at identi
cal exchange rates or 1.3% at actual
exchange rates due to the weakening
of the U.S. dollar by 4.8% against the
euro compared to 2010. Organic rev
enue growth was 2.4%.
Revenue growth was the result of a
solid increase of 32.1% at identical
exchange rates in Southeastern Europe
and Asia. Excluding the acquired Maxi-
operations, revenue growth in South
eastern Europe Asia was 7.5% at
identical exchange rates. In the U.S.
revenue growth was 2.2% at identical
exchange rate, supported by compara
ble store sales growth of 0.7%. Mainly
as a result of network growth and VAT
refunds, sales increased by 0.9% at
Delhaize Belgium, partly offset by a
negative comparable store sales evolu
tion of 0.6%.
The U.S. operating companies gener
ated 65% of Group revenues, Belgium
23% and Southeastern Europe and Asia
12%.
Gross margin was 25.4% of revenues,
a decrease of 22 basis points at iden
tical exchange rates as a result of the
lower margin of Maxi and price invest
ments in the U.S., partly offset by pro
curement savings and better supplier
terms across the Group.
Other operating income amounted
to EUR 118 million in 2011 compared to
EUR 85 million in 2010 and increased
mainly due to an insurance reimburse
ment related to tornado damages,
higher rental income and more waste
recycling income, all at Delhaize Amer
ica.
Selling, general and administrative
expenses amounted to 21.3% of rev
enues, an increase of 28 basis points
compared to 2010 at identical exchange
rates mostly due to the impact of soft
sales and operational expenses relat
ing to our growth projects in the U.S.
and the negative impact of automatic
salary indexation at Delhaize Belgium,
partly offset by cost savings throughout
the Group.
Other operating expenses amounted
to EUR 169 million in 2011 compared to
EUR 20 million in 2010. The 2011 results
included EUR 135 million impairment
charges primarily related to the portfo
lio optimization announced in January
2012.
Operating profit decreased by 20.8%
at actual exchange rates to EUR 812 mil
lion (-18.1% at identical exchange rates)
mainly due to the impairment charges
recorded in the fourth quarter of 2011.
Delhaize Group's U.S. business contrib
uted 62.3% of the total Group operat
ing profit (excluding the Corporate seg
ment), Delhaize Belgium 28.3%, and
the Southeastern Europe and Asia seg
ment 9.4%.
Net financial expenses amounted to
EUR 181 million, a decrease of 7.7%
compared to 2010 at identical exchange
rates mainly due to gains on the dis
posal of financial assets, the positive
impact of the 2010 bond exchange and
a USD 50 million bond reimbursement
in April 2011, partly offset by the financ
ing of the acquisition of Delta Maxi. At
the end of 2011, the average interest
rate on our long-term debt was 5.0%
compared to 5.1% at the end of 2010.
In 2011, Delhaize Group's profit before
tax and discontinued operations
