Shares in Belgian retailer Colruyt fell today (3 December) after the company's half-year core profits missed analyst forecasts.
Colruyt booked EBITDA of EUR322.2m (US$420.9m) for the six months to the end of September on Friday, up 1.6% on the year but below analysts' predictions. According to a Reuters poll, analysts forecast EBITDA of EUR330m.
EBIT was up 1% and net profit increased 1.2% but Colruyt said its gross margins fell as it only partially passed on higher costs to consumers.
Colruyt said it "resolutely" maintained its policy of low prices and added: "The uncertain economic climate and the persistent weak consumer confidence in the euro area makes customers even more price-conscious, which means they change their purchasing behaviour and are more inclined to buy cheaper products."
The retailer reported a 6.5% increase in underlying sales and said it had increased its market share.
Colruyt maintained its forecast for annual net profit to match last year. "Due to the persistently unfavourable consumer climate but also due to the impact of Belgian governmental budgeting measures, the next reporting period will remain a challenge for us as well as for all retailers."
Shares in Colruyt closed down 1.91% at EUR34.71.