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Belgian retail group Delhaize has posted third quarter constant currency revenue growth of 2.3%, boosted to 14.5% headline growth thanks to the strong dollar and weak euro.

Revenues reached €6.14bn during the quarter, taking its constant currency growth for the first nine months of the year to 2.6% or 16.1% including currency effects.

Like for like sales were up 1.7% in the US (or up 4.1% excluding the positive impact from strikes at a competitor last year), 1.7% in Belgium and 5.1% in Southeastern Europe

Group underlying EBITDA was up 13.7% to €383m in the quarter, or up 0.5% at constant currency.

CEO Frans Muller said: “We continue to report robust sales in this third quarter. At Delhaize America, while our revenue growth was driven by Food Lion, Hannaford also posted positive volume growth once adjusted for the competitive turmoil of last summer. Our return to positive comparable store sales growth in Belgium is just a first step as we are putting our operations back onto a path of sustainable growth.

“We are looking forward to the important fourth quarter of the year and we are confident that we will deliver results and free cash flow in line with expectations.

Delhaize said it “continues to make progress” with its agreed merger with Ahold, which is on track to complete by mid-2016.

Morning update

It’s a quieter morning today after yesterday’s glut of sector news.

Distil, the AIM-listed owner of drinks brands RedLeg spiced rum, Blackwoods gin and vodka, Blavod black vodka, Jago’s cream liqueur and Diva vodka, has announced its results for the six months to 30 September 2015.

Revenues were up increased by 89% to £530k “mainly due to the strong growth of RedLeg spiced rum and continued progress of the Blackwoods brand on the back of increased marketing support and distribution gains”.

Volumes increased by 23% and its operating loss contracted by 69% thanks to reduced costs to £89k.

Executive chairman Don Goulding said: “The continued progress in developing our brands in key markets is reflected in a pleasing set of first half results. Revenue growth is being supported by increased investment in brand marketing and we are seeing this come through to the bottom line as we tightly manage our costs and deliver procurement efficiencies.”

The FTSE 100 has opened 0.8% down to 6,383.5pts wiping out most of yesterday’s gains as the mining companies slide and Barclay’s issued disappointing trading figures this morning.

It’s a mixed bag for grocery/fmcg firms, with Unilever (ULVR) down 1% to 2,930p, but Associated British Foods (ABF) up another 0.6% to 3,491p and Diageo (DGE) also up 0.6% to 1,880p.

In Brussels, Delhaize is up 1% to €83.73.

Yesterday in the City

The FTSE 100 returned to growth yesterday after a couple of days of decline, climbing 1.1% to 6,437.8pts.

The UK index was boosted by a 2.6% rise at British American Tobacco (BAT) after the cigarette maker saw increased volumes in the third quarter take revenues for the first nine months to the year up 4.2% on a constant currency basis.

A number of other key grocery stocks were also on the up, including Tesco (TSCO), up 1.9% to 188.8p, Associated British Foods, up 1.3% to 3,470p, and Imperial Tobacco (IMT), up 1.3% to 3,500p.

C&C Group was down 2% to €3.64 on top of a 2.8% fall on Tuesday after releasing disappointing first half figures as profits fell 9.5% to €62.6m and sales dropped 2.6%.

In the US, Walgreen Boots Alliance plunged 10.7% to $84.95 after its fourth quarter results failed to hit expectations and profit margins contracted by 2.5 percentage points. Mondelez shares edged down 0.4% to $46.40 after emerging markets drove a 3.7% boost to third quarter organic net revenues.

Heineken shares were up 4% to €83.35 as global revenues increased 8% to €5.51bn in the third quarter.

 

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