Colruyt beats profit forecasts
for 2002/03, well ahead of analysts expectations and despite
continued troubles at its computer retailing arm.
Belgian retail group Colruyt has reported profits up 22 per cent for 2002/03, well ahead of analysts expectations and despite continued troubles at its computer retailing arm.
The company posted sales of €3.1 billion in 2002/03, up 7.5 per cent on the previous year, while profits surged to €134.4 million. Excluding Dolmen, whose sales fell during the year, the rise in turnover would have been nearer 10 per cent, reflecting the good performance of the company's main food retailing arm.
Cash flow increased by 16 per cent to €212.6 million, while operating profit rose by 23.6 per cent to €203.6 million.
The company opened three new Colruyt stores during the year, while two were completely rebuilt and 14 were enlarged or renovated, including three acquired from other companies.
But it was not all good news, with Dolmen registering a sharp fall in turnover (-22.2 per cent to €159.7 million) and in profit (-40.4 per cent to €5.50 million) due to very difficult market conditions.
There were good performances from the Druco printing business, the DreamLand toy retailer and the France-based Pro à Pro Distribution Group, which includes the Ripotot, Doumenge and Blin food distribution businesses, with the latter alone posting sales of €265 million and turning a profit (€0.23 million) for the first time since its takeover by Colruyt in 1996.
The company is also planning to develop its portfolio of convenience stores under the Okay banner this year, with five new stores added during 2002/2003 taking the total to 15. The company's objective is to open five new Okay shops per year.
The family-owned group said it did not expect to see any improvement in the market conditions impacting sales at Dolmen, but that its Belgian and French food retailing businesses should see positive growth in the 2003/2004 fiscal year, helped by the recent acquisition of a number of stores from the Laurus group.
