BRUSSELS — Price investments in its banners on both sides of the Atlantic and a strong performance of private brands helped Delhaize Group post a 24.4% increase in net profits during the fiscal first quarter, the retailer here said Wednesday.
Delhaize reported net earnings of $169.2 million on overall sales of $6.8 billion. Sales increased by 3% overall, with comparable store sales in the U.S. improving by 2% to $4.7 billion.
All of Delhaize’s U.S. banners made price investments during the quarter, with activity especially competitive at Food Lion in the Southeast, Pierre-Olivier Beckers, president and chief executive officer, said in a conference call.
Expense controls and growth of private brands helped improve profits, with operating margin improving to 5.7% of sales in the U.S. and operating profit up 10.4% to $266 million.
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