Spanish discounter DIA reported a strong full year performance for fiscal 2012, with gross sales up 6.7 per cent (at constant currency rates) to €11.7 billion, with like-for-like growth of 3.1 per cent. The retailer said its positive results are due to strong growth in Spain, Brazil and Argentina.
The group's underlying net profit surged by 19.3 per cent to €190.1 million, with adjusted EBITDA totalling €609.5 million, an increase of 9.4 per cent. It also announced that it is to invest €350 million during the course of 2013, with more capex devoted to store openings in Iberia and Brazil.
DIA's gross sales were up 4.8 per cent in Iberia reaching €5.87 billion with 1.7 per cent growth on a like-for-like basis. Despite the chronic economic difficulties in Spain, Dia's home market performed better than Portugal. During the year, DIA opened 98 stores in Spain, including 18 under the new DIA Fresh banner. In France, turnover slumped 6.9 per cent on a like-for-like basis.
The emerging markets provided sales growth of 24 per cent in local currency and 15 per cent on a same-store basis, with Brazil a particularly strong market for the retailer.
At the end of 2012, DIA operated 6,914 stores (excluding Beijing), with 102 stores opened in the final quarter. However, this figure does not include the 1,168 Schlecker stores the group acquired in Spain and Portugal. DIA said its 2,890 franchised stores make up 41.8 per cent of the total store network and it plans to continue its expansion in 2013.
Group CEO Ricardo Currás reflected upon the performance, "We have been increasingly focused in our key markets, with more emphasis, efforts and capital resources devoted to Iberia and Latam, with particular attention to Brazil. We have also acknowledged the need to become more specialised in some segments such as ‘Fresh’ products and ‘Home and Personal Care’. The new DIA Fresh format and the acquisition of Schlecker in Spain and Portugal are two significant first steps in this direction."
He also spoke about the group's focus for the new fiscal year, "DIA’s priorities in 2013 will be the acceleration of openings in Brazil and reinforcing the company’s proximity profile in Spain with the new complementary formats." (21 Feb)
© 2013 - ESM: European Supermarket Magazine by Sadhbh Connor
