Brussels, Nov 25 - Belgian discount supermarket chain Colruyt is set to post a rise in half-year earnings and could raise its full-year profit guidance on Friday as consumers tighten their belts amid an economic slowdown.
A Reuters poll of six analysts produced an average earnings before interest and tax (EBIT) forecast of 220 million euros ($283.2 million), up 10.4 percent against the first half of the 2007-2008 financial year.
Analysts expect the group to raise its full-year net profit forecast from its current 304 million euros, or 5.2 percent profit growth.
"The company is known to issue extremely cautious guidance. If the first half is positive, the group will have to raise its forecast. Otherwise it could seem like they expect a drop in profit in the second half," ING analyst John David Roeg said.
Pascale Weber at KBC agreed that it was very likely that Colruyt would raise its profit guidance.
Net profit for the first half year is expected to rise by 10 percent to 158 million euros while sales are seen at 3.09 billion euros for the March to September period, also up 10 percent from last year's 2.71 billion euros.
Colruyt competes with German hard discounters Aldi and Lidl, France's Carrefour and high-end Belgian retailer Delhaize, and has been increasing its market share in Belgium as consumers turn to cheaper goods.
The group's stock has risen 5.2 percent in the year to date, while the DJ Stoxx European retail index has fallen by 44 percent.
Belgium's consumer confidence index fell to its lowest level in almost 15 years in November, according to data released last week, mainly due to greater pessimism about jobs.
Net EBIT Sales Average 158 220 3091 Median 156 220 3095 Highest 168 223 3107 Lowest 154 217 3080 Forecasts 6 6 6 H1, 07/08 143 197 2714