Spanish retail group Dia reported an increase in gross sales and adjusted core profit in the first half of its 2024 financial year, as it completed the process of transforming and simplifying its business.
Gross sales at Dia reached €3.3 billion, an increase of €73 million compared to the first half of 2023, the company noted in a statement.
Adjusted EBITDA increased 54% in the period to June, amounting to €128 million, with a margin increase of 1.6 percentage points.
Martín Tolcachir, global CEO of Grupo Dia, stated, “Over the past four years we have focused our efforts on achieving the company's turnaround and simplifying the portfolio, creating two platforms for growth and profitability such as the businesses in Spain and Argentina.
“The first half of 2024 has allowed us to close this important stage. With the turnaround process already concluded in Spain and Argentina, in these months we have completed the exit operations in Brazil and Portugal and the sale of Clarel, thus closing the business simplification process and moving towards the next stage of growth towards leadership.”
First-Half Highlights
Grupo Dia continued to witness organic growth in Spain in the first half, with like-for-like sales increasing above both inflation and the market, at 5.1%.
The division generated a net profit of €25 million until June – an increase of €59 million compared to the corresponding period last year.
The company's performance was driven by 'a good pace of business' with an increase in volume and the acquisition of new customers, the company noted.
Moreover, a smaller store network – compared to 2021 – helped Dia Spain to increase its gross sales in the first half of the year.
The retailer also received a boost from its omnichannel value proposition, with a 7.3% increase in basket value and a sustained increase in customer satisfaction.
With digital customers comprising 43% of the total, Dia Spain saw online sales rise to €99 million in the first half, representing 4.7% of total net sales and a 1.3 percentage point increase compared to the same period last year.
Adjusted EBITDA reached €114 million in Spain, or almost double the figure compared to 2023 and triple that of 2022. Profitability grew by more than 3.5 percentage points, to 5.5% of net sales.
In Argentina, Dia faced a challenging first half at a macroeconomic level as volume sales fell by 5.6% due to falling consumer demand.
The company gained market share in the country, while like-for-like sales increased by 2.7%.
'A Very Positive Half-Year'
Guillaume Gras, chief financial officer of the Dia Group, stated, “We have closed a very positive half-year, with improved results and leverage that put the company in a solid position to face the debt refinancing process that we will undertake at the end of this year and with which we will guarantee the resources to make our future ambitions a reality.”
Tolcachir added, “Dia is today a solid and profitable business. This scenario allows us to put our energy and resources into Spain and Argentina, where our omnichannel value proposition, unique in proximity, has the approval of customers and we see a clear potential to continue growing and improving results.”
Read More: Dia CEO Confident Of Growth Prospects In Spain, Argentina
