Operating profit
Underlying operating profit
Net financial expenses
Effective tax rate
Net profit from continuing operations
Result from discontinued operations
Net profit
Operating profit decreased from €537 million
in 2013 to €423 million in 2014 and operating
margin decreased from 2.6% to 2.0%. This
decrease is primarily due to the €137 million
reorganization charges in Belgium, partially
offset by lower impairment losses in Serbia.
Underlying operating profit decreased by 3.4%
to €762 million (-3.3% at identical exchange
rates). Underlying operating margin was 3.6%
of revenues (3.8% last year). Excluding the
impact of the 53rd week, underlying operating
profit decreased by 6.5% to €737 million (-6.3%
at identical exchange rates).
Net financial expenses were €172 million, a
decrease of €12 million compared to last year
mainly due to lower outstanding debt and
higher interest income.
During 2014, the effective tax rate on continu
ing operations was 26.3%, compared to the
previous year's rate of 24.2%. The increase
was mainly caused by the anticipated expi
ration of loss carry-forwards in certain U.S.
states and the non-deductibility of the goodwill
impairment charge in Serbia partially offset by
the tax effect of the reorganization charge at
Delhaize Belgium.
Net profit from continuing operations was
€189 million or €1.85 basic earnings per share.
This compares to €272 million net profit from
continuing operations or €2.65 basic earnings
per share in 2013.
Delhaize Group recorded a loss of €99 million
from discontinued operations compared to
a loss of €90 million in 2013. The 2014 loss
was as a result of the impairment charges
recorded following the (planned) divestiture
of Bottom Dollar Food, Bulgaria and Bosnia
Herzegovina which was to a small degree
offset by a gain on the sale of Sweetbay,
Harveys and Reid's. In 2013, the loss was
mainly resulting from store closing expenses
recorded at Sweetbay, impairment losses at
Delhaize Montenegro and operating losses at
Bottom Dollar Food and in Bulgaria and Bosnia
Herzegovina.
Group share in net profit amounted to €89 mil
lion, a decrease of 50.3% at actual exchange
rates (-52.6% at identical exchange rates)
compared to 2013. Per share, basic earnings
were €0.88 (€1.77 in 2013) and diluted net
earnings were €0.87 (€1.76 in 2013).
2014 figures include the 53rd trading week in the U.S.
