FINANCIAL
I
REVIEW
Income statement
Gross margin
Other operating income
Selling, general and administrative
expenses
Other operating expenses
PERFORMANCE
In 2014, Delhaize Group realized revenues
of €21.4 billion. This represents an increase
of 3.7% and 3.9% at actual and at identical
exchange rates, respectively. Excluding the
53rd week in the U.S., revenues were €21.1 bil
lion and increased by 2.5% (2.6% at identical
exchange rates). Organic revenue growth was
2.6%.
The 2014 total revenue growth was the result
of:
Revenue growth of 6.6% in local currency
in the U.S. (4.5% excluding the 53rd week)
supported by comparable store sales growth
of 4.4%;
Revenue decline of 3.0% in Belgium as a
result of a comparable store sales evolution
of -3.5%, partly offset by network expansion;
and
Revenue growth of 4.3% at identical
exchange rates in Southeastern Europe
driven by revenue growth in Greece and
Romania, partly offset by decreasing
revenues in Serbia. Comparable store sales
evolution was -1.0%.
REVENUES'1'
(IN BILLIONS OF
20.5 20.6 21.4
((I
12 13 14
UNDERLYING
OPERATING MARGIN"
(IN
4.1 3.8 3.6
ll
12 13 14
UNDERLYING
OPERATING PROFIT™
(IN MILLIONS OF
845 789 762
III
12 13 14
Gross margin was 24.1% of revenues,
a 29 basis points decrease at identical
exchange rates mainly due to price invest
ments in the U.S. and disruptions caused by
the Transformation Plan in Belgium, which
were partly offset by an improved gross mar
gin in Southeastern Europe.
Other operating income was €119 million, a
decrease of €8 million compared to last year,
which included €9 million gains resulting from
the sale of City stores in Belgium.
Selling, general and administrative expenses
were 21.1% of revenues and were 3 basis
points lower than last year at identical
exchange rates. An improvement in the U.S.
was almost entirely offset by higher costs as a
percentage of revenues in both Belgium and
Southeastern Europe.
Other operating expenses were €332 million
compared to €257 million in prior year. 2014
results consisted predominantly of €148 million
impairment losses on goodwill and trade
names at Delhaize Serbia (compared to €191
million in 2013) and €137 million reorganiza
tion charges in connection with the Transfor
mation Plan in Belgium.
NET PROFIT FROM
CONTINUING OPERATIONS"
(IN MILLIONS OF
297 272 189
12 13 14
