Brussels, Nov 30 - Belgian discount supermarket chain Colruyt reported a 7.6 percent rise in first-half net profit on Friday, beating expectations, and slightly increased its full-year outlook.
Net profit in the April-September period amounted to 143.1 million euros ($211 million), up from 132.9 million euros a year earlier and well above the average forecast of 131.6 million euros from a Reuters poll of eight analysts.
Colruyt raised its full-year 2007/2008 net profit guidance to 276 million euros from 274 million euros. It made a profit of 262.6 million euros in 2006/2007.
Colruyt said in September that it expected slower growth in the year to March 2008 because of tough weather and competition. Growth in the previous financial year came to 14 percent.
Group sales totalled 2.71 billion euros in the first half, a rise of 6.6 percent year-on-year and marginally above the average poll forecast of 2.70 billion euros.
At the operating level, Colruyt reported earnings before interest and tax of 197.3 million euros, up 3.7 percent and higher than the average forecast of 186.6 million euros.
Colruyt said it had maintained its gross profit margin despite the difficult summer, when the weather was poor, and an increasingly competitive business climate.
The operating profit of the retail division, which accounts for over 75 percent of sales, grew by 3.5 percent.
Colruyt, renowned for its spartan discount warehouses, has faced tough competition from German discounters Aldi and Lidl, France's Carrefour and higher-end Belgian rival Delhaize.
Analysts have noted a toughening of the competitive environment, although it has stopped short of a price war.
Chairman Jef Colruyt told Reuters on Wednesday that the company did not believe competition would get much fiercer.