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AB Vassilopoulos 2008 profit drops 11.6 pct

Published 03/11/2009, 08:27 AM
Updated 03/11/2009, 08:32 AM
DELB
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* 2008 net falls 11.6 percent to 32.7 million euros

* 2008 sales up 13.8 percent to 1.34 bln euros

* To propose dividend of 1.0 euro per share for 2008

ATHENS, March 11 (Reuters) - Greek supermarket chain Alfa-Beta Vassilopoulos, majority-owned by Belgian Delhaize, reported on Wednesday a 11.6 percent drop in 2008 net profit on higher operating costs.

Net group profit fell to 32.7 million euros ($41.49 million) from 37.0 million euros in 2007, it said.

Sales in 2008 grew 13.8 percent to 1.34 billion euros, the company said, as the chain expanded its network. In the same period, earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 1.7 percent to 70.542 million euros, according to the company's statement.

The company's operating expenses rose 18.3 percent to 263.7 million euros, mainly because of higher energy prices and increased costs of overhauling stores, it said.

Vassilopoulos said last year's results are not fully comparable with 2007, as it now consolidates assets acquired in 2008. The company said it would propose a dividend of 1.0 euro per share, up from 0.89 euros a year earlier.

Vassilopoulos, with a network of 201 stores, also said it plans to launch 16 new stores this year.

Its shares were up 0.08 percent to 24.00 euros, underperforming the general index which was up 1.59 percent at 1118 GMT.

(Reporting by Tatiana Fragou; Editing by Rupert Winchester)

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