COLRUYT GROUP N.V. 
KEY FIGURES Dear shareholders,
Colruyt Group achieved again more than satisfactory results
again in the past financial year. Indeed, despite the trying
economic climate, the government's austerity measures
and the pressure on employment, we succeeded in realising a
sales growth of 7,8% to 7,85 thousand million euros.
Allow me to illustrate this result with a few key
figures:
The group's share in the consolidated profit after tax
increased by 1,5% to 343 million euros compared with 338
million euros last year.
The operating result increased by 2,7% as compared to last
year, in total amounting to 485 million euros. The EBIT
margin closed at 6,2%, 30 basic points lower than in the past
financial year. We attribute this lower growth mainly to the
increased depreciation charge. In this inflationary economic
climate, we still succeeded in keeping our wage and other
miscellaneous costs under control.
Equally appreciable is the raise in cash flow (group share).
Last financial year cash flow amounted to
487 million euros and this year it increased by 10,7% to a
considerable 539 million euros. The earnings per share (group
share) increased by 1,9% to 2,18 euros.
Considering the operating result, we propose an increase of
the gross dividend by 3,3% to 0,95 euros per share.
Evidently we were only able to realise this thanks to the
joint effort of all our employees and the confidence of our
customers and business partners, for which I want to thank
all of them on behalf of the Board of Directors. In this
respect, I share the view of the Board of Directors that they
all worked very hard to close this financial year with
excellent figures in a highly competitive landscape.
In this difficult socio-economic climate, Colruyt Group also
furnished its social added value. On 31
March of this year, 25.205 employees worked for Colruyt
Group, which means we welcomed 1.086 new employees in the
past year.
No less than 55,18% or 871 million euros of the added value
generated in Belgium was turned over to the national
treasury. Consequently, it is fair to expect that these
contributions will be used efficiently in view of the further
reconstruction of the Belgian government finances. It is
crucial also not to burden entrepreneurship even more with
unrealistic administrative and/or tax measures. The spending
power of families must also be protected as much as
possible.
Each of our business activities continues to work hard and
consistently towards the realisation of their promise to the
customer and to society. This means that we fulfil our
commitment day after day: together we want to achieve useful
and sustainable retail.
From this perspective, Colruyt Group again invested some 300
million euros in stores, distribution centres, production
plants as well as in the necessary information technology and
sustainable energy projects.
By centralising our Belgian real estate in one operating
company, we have aligned the depreciation periods for these
assets. This resulted in 7,5 million euros extra depreciation
for the past financial year and 6 million euros per year for
additional depreciation charges in the next four years. In
the past financial year, we also recorded a one-off
impairment of 18,3 million euros on our electricity
production from animal fat by W-Cycle.
Let us go deeper into the results of the activities of
Colruyt Group.
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RETAIL TRADE
As you know retail trade realises 76% of all revenues, and is
as such the most important part of our activities. In Belgium
it is covered by the business activities Colruyt, OKay,
Bio-Planet, DreamLand, DreamBaby and ColliShop. In France we
are represented by Colruyt and the Coccinelle stores under
own management. Both put up an excellent result. In total we
speak of a revenue increase by 7% and an increase of the
operating result by 7,5%.
The Belgian Colruyt stores achieved a sales increase of 6% as
compared with the previous financial year. We opened five new
stores and some twelve establishments were renovated. On the
very competitive Belgian market we were able in 2011 to
substantiate a market share of 25,20%. This upward trend is
confirmed in the first half of the current calendar year.
This excellent performance must be seen in the context of a
rising inflation, which we can only apply in our stores with
a delay. Rising prices of raw materials and energy have an
amplifying effect, influence our margins and limit the
spending pattern of our families.
Nevertheless, this business activity lived up to its promise
to the customer: the guarantee of the lowest prices. Revenue
increase and the growing market share prove that consumers
appreciate this and keep their full confidence.
Our more recent retail formulas such as OKay and Bio-Planet
were also able to approach their customers with success. With
a sales growth of 14,5% they put up a splendid performance.
Meanwhile, at the end of March of this year, OKay boasts 80
establishments (6 of which are new stores) and Bio- Planet
7.
Finally, the specialised non-food formulas DreamLand and
DreamBaby achieved a revenue increase of 9,4%. Their
assortments are also included in ColliShop that wants to
strengthen its profile with the development of individual web
shops. The Cookozi web shop for instance does justice to our
bon- vivant roots with a focus on cosy cooking, dining and
enjoying.
The deserving accomplishments of our French branch are also
worth mentioning. On a stagnating and extremely competitive
retail market, these integrated stores succeeded in achieving
a sales increase of 18,6%. With the opening of 10 additional
stores last financial year, the total comes to 64 integrated
stores. These splendid sales figures are a boost for the
French expansion ambitions.
Although the expansion policy and positioning of the business
activity still result in a negative contribution, we have
great hopes that this strategy will yield in the longer run.
The French customer clearly does not only aim at the lowest
price guarantee for national brands, but can also appreciate
the local approach, the customer-friendliness, the broad
range of private labels, fresh products, cheese and wine, and
the quality butcher's shop.
WHOLESALE & FOODSERVICE
The second largest segment is wholesale and foodservice,
representing 16% of the group's sales. On a very
competitive market, we still recorded a revenue increase of
2,1%.
In the wholesale activity more specifically, stronghold Spar
Retail contributed in considerable measure to a 5% growth of
the wholesale activities in Belgium and France. Spar Retail
saw its revenue per square metre and profitability increase
again. In the past financial year 8 Spar shops were opened
and another 8 were renovated, taking their market share to
3,53%. A pushing remodelling programme, further price
investments and the collective entrepreneurial spirit
certainly contributed to turning Spar Retail into an
attractive player among the independent local shops.
The French Pro à Pro and the Belgian business activities
Collivery and Foodinvest are responsible for food service
activities. They mainly focus on deliveries to commercial
catering - such as hotels, restaurants, cafés and party halls
- and social catering such as rest homes, hospitals and
company restaurants. Due to the economic context, consumers
eat out less. In a stagnating market we notice a slight
increase in sales in France and an almost status quo in
Belgium. In France we also recently opened two new
distribution centres.
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The synergies between France and Belgium are optimised to
achieve a joint IT platform, better purchase conditions and a
more comprehensive assortment. This is indeed an inspiring
mission for this financial year.
OTHER ACTIVITIES
A third and last segment, worth 9% of the group's
revenues, includes the petrol stations under DATS24, the
document-handling and printing activities of Symeta, the
engineering activities under Intrion and the green energy
activities. These other activities realised a turnover growth
of no less than
26%. The lion's share of this growth can be attributed
to DATS24 and a redoubling of the green energy revenue.
Belwind, the offshore wind farm, produced 589 gW of green
energy in its first operational year. Today, Belwind is the
largest alternative power plant in Belgium.
At the end of June 2012, a second wind farm Northwind was
also successfully contracted out and financed. We expect this
plant to produce 850 gW per year as from 2014.
Today, Colruyt Group has invested over 120 million euros in
these projects and, from its commitment to sustainability
wishes to further embed and develop the knowhow established
with external partners in NV Parkwind.
Wim Biesemans, currently CFO of Colruyt Group, was there from
the outset of these projects and now wishes to take charge of
the further development of this industrial activity for 100%
as the CEO of NV Parkwind. In the coming months the
succession and transition for the role of Wim Biesemans as
CFO for Colruyt Group will be settled. We want to thank Wim
very much for his contribution to Colruyt Group and we wish
him every success in his new mission.
PURCHASE PROGRAMME TREASURY SHARES
Like last year, the Board of Directors again used the
authorisation of the Extraordinary General Meeting to
purchase treasury shares. During the past financial year, we
purchased treasury shares for an amount of 82,5 million
euros. Today we own 12.447.336 treasury shares or 7,39% of
the total number of shares issued. The Board of Directors
decided to have 4 million of these treasury shares destroyed
by the end of 2012. The general expectation is that we will
continue our purchase programmes whenever the conditions to
do so are favourable.
OUTLOOK
It is entirely clear that Colruyt Group has covered a
successful round in a challenging socio-economic climate.
However, we are perfectly conscious that external influences
will also determine our course. I think of the increasing
prices of raw materials, which we can only partially
on-charge to the consumers as well as the wage indexing and
steep energy prices that weigh on our cost structure. All
these
factors against the background of a price-competitive climate
with a decreasing consumer market and an uncertain
socio-economic context result in a feeling of uncertainty
about the future and prompt us to be careful when announcing
an outlook.
Nevertheless, for this financial year 2012/2013, we aim at
achieving a consolidated net result (group share) that is at
the same level as last financial year.
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We are determined to continue to supply added value in a
sustainable way. For this purpose, we count on your
confidence and on our talented employees who devote their
skills day by day to achieve this. Our mission and our values
are their compass on this course.
I would like to thank them again for their commitment and
customer-oriented approach. "The company grows provided
that the people grow" is the true conviction of Colruyt
Group.
May it remain an inspiration.
Jef Colruyt
Chairman of the Board of Directors
Colruyt Group
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