Delhaize paid €179 million dividend; net debt up to €2.77 billion

By Sahara Marte

New York, Aug. 22 - Delhaize Group SA's payment of a dividend in the second quarter was the major factor in an increase in its net debt, Pierre Bouchut, executive vice president and chief financial officer, said during the company's second quarter earnings conference call.

Delhaize paid a dividend of €179 million, which contributed to a rise in the company's net debt to €2.77 billion, added Bouchut.

In addition, the company said, currency translation added a further €50 million.

The company's net debt was up €121 million from the same quarter last year.

This quarter, the company reported €447 million of operating cash flow, which was directed to paying the dividend along with €359 million of capital expenditure.

The company expects cash flow of €500 million for 2012 as a whole, despite the second quarter's 60% drop from the same period of last year, Bouchut said.

"We are confident to reduce, by about €120 million, our capital expenditure in the second half versus last year," added Bouchut. "But also to better monitor the working capital."

Delhaize is a food retailer based in Brussels.

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