Belgium's Colruyt maintains forecast despite brilliant first half

Belgian discount grocer Colruyt retained its cautious guidance for the full financial year, in spite…

Belgian discount grocer Colruyt retained its cautious guidance for the full financial year, in spite of a strong first half in which it gained market share and expanded its margins.

Net profit in the first six months of its calender until 31 March came in at €176.2 million, above the €163 million expected in a Reuters analysts' poll. Operating Profit for the same period was up 10.4% to €254.7 million.

Revenue at Colruyt increased 4.6% to €4.25 billion. In a statement issued by the company, which can be read here, it noted that its good performance came due to "keeping cost growth under control". Sales in Belgium rose 4%, while in France, where they hold a smaller market share, sales rose 11.3%.

The group repeated the outlook given in September that its net profit for the current financial year would be unchanged from last year, taking a far more cautious stance than analysts about its prospects.