Martín Tolcachir, the global CEO of Spanish retail group Dia, is confident that the business will continue to grow and generate value in Spain and Argentina.
The financial year 2023 was crucial for Dia as it achieved strategic milestones focused on completing the turnaround process in Spain and Argentina, Tolcachir said at the company's ordinary general shareholders' meeting.
The retail group saw an improvement in its financial performance in this period. It was successful in simplifying the portfolio to focus its efforts on the most profitable countries with growth potential.
Tolcachir added, "Dia is a solid, profitable business with a clear strategy and the right leadership to execute it. [...] The milestones achieved confirm the success of a strategy that is tirelessly committed to being close to people, to understanding the customer and surprising them with a unique value proposition in proximity that raises their satisfaction to loyalty."
Annual Highlights
In Spain, Dia generated a net profit of €122 million in the financial year 2023, registering an adjusted EBITDA growth of 31% compared to 2022.
Comparable sales increased for the second consecutive financial year, with an increase of 10.7%, or 3.2 points more than in 2022.
Argentina also closed 2023 in positive territory for the second year in a row, with a profit of €6 million, the company added.
The business unit doubled its adjusted EBITDA during the financial year compared to €59 million in 2021.
At group level, net sales amounted to €6.8 billion, with like-for-like sales growth of 3.3%.
It was driven by the performance in Spain, which saw comparable sales growing by 10.7% compared to 2022.
Dia also narrowed its losses by 75% to €30 million in 2023, representing an improvement of €94 million compared to 2022 and €227 million from 2021.
Net financial debt for 2023 was reduced by €120 million compared to the previous year, the company added.
Tolcachir added, "We are proud to have been an ally of household savings for 45 years in Spain and almost 30 years in Argentina, and the fact that Club Dia continues to grow is a clear sign of its relevance".
"We have succeeded in getting our customers to choose our neighbourhood shops and our online channel because they know that we have a differential value proposition: in Dia you can make a complete, easy and quick purchase; you find a wide and varied assortment, with fresh products from local suppliers and with a large Dia assortment of the highest quality and at affordable prices."
Outlook
In the future, Dia will focus on improving profitability and increasing cash generation, as well as advancing deleveraging and preparing the refinancing process of the debt maturing at the end of 2025.
Tolcachir added that in 2024 the company aims to expand the business in both countries.
In Spain, it will focus on organic growth based on the strengths of its value proposition, boost loyalty through Club Dia, and expand its online business.
It seeks to achieve its goals by offering an assortment that promotes fresh, locally sourced products and striking a balance between a selection of national brands and quality own-brand products.
