Brussels, Sept 19 - Belgian discount supermarket chain Colruyt told shareholders on Wednesday it expected slower growth for April 2007 to March 2008 because of adverse weather and tough competition.
"We expect for the 2007/2008 reporting period a consolidated profit of 274 million euros ($383.2 million) compared with 262.6 million euros for 2006/2007," chairman Jef Colruyt said in a statement read to shareholders at the company's annual meeting.
That would imply year-on-year growth in net profit of 4.3 percent compared with the previous year's 14 percent.
The forecast was also slightly below analysts' expectations.
Analysts at Rabo Securities had expected the group to pencil in net profit for the period of 280 million euros while KBC Securities had expected a forecast of 286 million euros.
Colruyt, famed for its spartan warehouse-style stores, also said sales in the April-to-August period were up 4.45 percent year-on-year, showing slower growth because of adverse weather and the competitive climate.
"The unstable summer weather has strongly impacted consumer consumption of typical summer products," Colruyt said.
The combination of a tough competitive environment and inflationary pressures on dairy products, grain products, vegetables and fruit had also taken its toll.
"In today's climate of increased competition, these inflationary pressures are taking time to be absorbed by the market," Colruyt said.
Colruyt competes with German hard discounters Aldi and Lidl, France's Carrefour and high-end Belgian retailer Delhaize.