Harris Teeter 1999 Annual Report Download - page 14

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10
Ruddick Corporation and Subsidiaries
CONSISTENT GROWTH
AMERICAN & EFIRD: EXPANDING FOREIGN SALES
For the 53-week fiscal 1999,A&E’s sales fell by 1%, reflecting the approximately $3.8 mil-
lion of prior year sales in its Korean operations, which were closed in June of 1998. Given this
and the sluggishness in A&E’s markets throughout the first half of the fiscal year – resulting in
decreased sales in the first and second quarters – we reported essentially flat sales for the year.
In addition, we continued to sell a greater percentage of highly engineered products which gen-
erate more favorable margins. Sales in the U.S. continued to be impacted by increased apparel
imports and the shift of apparel production out of the country, but A&E’s total sales were
buoyed by expanding foreign sales, particularly in Mexico, Central America and the Caribbean.
Computerized electronic shade matching ensures
shade consistency and provides A&E with data for
continuous process improvements.
Harris Teeter Express offers homeward-bound
Charlotte, N.C. shoppers a full range of products
in a convenient 11,500-square foot format.
HARRIS TEETER: STRATEGIC MOVES IN KEY MARKETS
During the fiscal year, Harris Teeter announced an important strategic development
that assisted us in our ongoing efforts to strengthen our store base. During May, we sold
11 western Virginia stores to Kroger and also purchased 10 Kroger stores in the Greensboro/
Winston-Salem, North Carolina market.We reopened those stores in June and July. Even with
the sales lost during this transition, sales for the full 53-week fiscal year grew by 7%.
Comparable store sales increased by .9% and reflected the still highly competitive supermarket
environment that Harris Teeter faces in the southeastern United States and the continuing lack
of food inflation. In addition, while Harris Teeter increased its overall share in some of its
stronger markets during the year, its comparable store sales were negatively impacted by the
opening of new stores in existing markets.
Harris Teeter EBITDA
In Millions of Dollars
Cash flow continues to increase at
Harris Teeter.
95 96 97 98 99
73.8 86.0 88.2 100.7 108.0
American & Efird EBITDA
In Millions of Dollars
In 1999, cash flow at A&E increased
to 18.5% of sales.
95 96 97 98 99
45.9 47.1 64.1 58.4 65.4