SOUTHEASTERN EUROPE ASIA
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üstern jEurope Asia comprise Delhaize Group's fastest growing segment. Combining
he acquired Maxi-operations in five Balkan countries withjthe existing operations of Alfa Beta in
Greece, and Mega Image i| Romania andfcthenadding the Super Indo operations in Indonesia
resulted in total 2012 revenues of €3.2 billion. Tlpse combined revenues comprise 14% of total
Group revenue!, upfrom 12% in 2011.
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Revenues of the Southeastern Europe Asia segment
increased by 34.1% in 2012, at identical exchange
rates. The Maxi-operations, for the first time fully con
solidated for the entire year in 2012, account for a
significant portion of this growth. However, excluding
the impact of Maxi, revenue increased 10% at identical
exchange rates thanks to impressive network expan
sion at Mega Image in Romania and solid growth in
Indonesia.
In a declining Greek market Alfa Beta managed to gain
market share in 2012. This is an excellent example of
how consistently implementing a customer-focused
strategy wins customer loyalty. During the past decade
Alfa Beta has worked vigorously to improve its price
perception while at the same time safeguarding its
valuable image as a quality food retailer. In 2012, Alfa
Beta continued its strategy of offering attractive assort
ments containing both national and private brands,
emphasizing on local products, and investing in price
competitiveness, and thus continued to win both the
heart and wallet of the challenged Greek customer.
The Maxi-operations benefited in 2012 from further
integration efforts with Delhaize Group. Under the
umbrella of Delhaize Europe the company succeeded
in maintaining cost discipline, making more resources
available to invest in sales building initiatives. Addition
ally, the company recently took the decision to sell the
small Albanian operations.
Gross margin in the SEE Asia segment decreased by
43 basis points due to the lower gross margin of Maxi.
Excluding Maxi, gross margin for the segment increased
by 32 basis points as a result of better supplier terms,
partly offset by price investments. Selling, general and
administrative expenses as a percentage of revenues
decreased by 15 basis points to 20.3% as a result of
higher taxes in Greece due to austerity measures and
higher staff costs and rents due to new store openings.
Total capital expenditures amounted to €157 million,
compared to €185 million in 2011.
