Spanish grocery retailer DIA has reported that sales in the fourth quarter of its 2024 financial year reached €1.48 billion, registering a 2.9% increase overall.
Sales in its home market drove this growth, with a 7.1% jump due to increased customer traffic, both in store and online, leading to a 7.7% like-for-like (LFL) sales increase and market share gains.
While Argentina continued to experience weakened consumer spending, DIA maintained its market share on an LFL basis, thanks to its diverse shopping options, convenient locations, and strong brand recognition.
DIA’s core business (excluding divested operations) saw a 2.9% sales increase in Q4 2024, reaching €1.48 billion, thanks to strong Spanish growth offsetting the decline in consumption in Argentina.
The sale of health-and-beauty chain Clarel, as well as operations in Portugal and Brazil, led to a 19.3% drop in overall group sales for the quarter.
For full-year 2024, continuing operations grew by 2.4%, to €5.68 billion – again, driven by DIA Spain. Including the divested businesses, however, total group sales for 2024 declined by 15.6%.
Spain
DIA Spain’s fourth-quarter net sales hit €1.1 billion, while full-year net sales reached €4.3 billion – a 5.4% rise with a 5.6% LFL increase.
This strong performance, fuelled by above-market volume growth, led to market share gains throughout 2024, particularly in the second half, when DIA outpaced the market, growing by 6.0%, compared to the market’s 3.7% growth.
As a result, DIA increased its market share by 0.1% during the period.
Key growth drivers included a 7.1% annual increase in transactions, sustained by DIA’s convenient shopping model; growth in loyalty programmes and digital engagement; increased sales of fresh products; a strong own-brand presence (57.7% of sales, excluding fresh, +3.4% year on year); and a 30% surge in e-commerce, now representing 4.4% of total sales.
Argentina
Argentina’s struggling economy, with consumption down by 16.5% in the fourth quarter and 13.4% for the full year, impacted DIA’s performance.
Fourth-quarter net sales declined by 7.6%, to €377 million, with a 19.8% drop in LFL unit sales, though this was a slight improvement on the previous quarter. Full-year sales fell by 5.6%, to €1.4 billion.
Despite these challenges, DIA gained market share in both volume and like-for-like sales, leveraging its convenient locations and competitive pricing.
With inflation easing in during the quarter and an expected economic recovery in 2025, the outlook is improving. DIA’s upgraded e-commerce platform also contributed, with unit sales growing by 7.2% in this period and now accounting for 1.6% of total sales.
At the end of 2024, DIA’s store network comprised around 3,343 stores, of which 2,302 were in Spain (around 1,500 were franchised) and the remaining 1,041 in Argentina.
DIA’s e-commerce platform, with a revamped website and app boasting over five million downloads, serves 84% of the Spanish population, including those in less populated areas.
Digital sales have increased by 25%, tripling the customer base over four years, thanks to an omnichannel approach offering over 7,000 products.
Western Gate Calls For Transparency
Western Gate, representing a coalition of minority shareholders in DIA, praised the Spanish market growth reported in its fourth-quarter results, but expressed concerns over several issues.
Despite the positive sales figures, DIA’s share price declined, highlighting the need for improved investor relations. Western Gate questioned the high cost of its new financing deal with HPS Investment Partners, noting that it is ‘more expensive’, given DIA’s improving performance, and requested further details about the decision-making process.
It also raised concerns about conflicting statements regarding LetterOne’s intentions to sell part of its stake in DIA, emphasising the need for improved share liquidity.
Furthermore, Western Gate criticised a perceived lack of transparency and communication, citing a discrepancy between CEO Jonathan Muir’s recent interview and prior communication from DIA’s investor relations team.
The coalition reiterated its call for better corporate governance, including improved transparency, communication, and the appointment of an independent board member with relevant expertise to represent minority shareholder interests.
It added that it aims to work with both LetterOne and DIA to improve the company’s market valuation and ensure that all shareholders – not just the majority owner – are adequately represented.
