Spanish supermarket chain Dia saw its sales rise by 17 per cent in Q1 to hit €2.5 billion, according to results issued this week.
Organic gross sales growth, excluding the El Arbol acquisition, was 6.9 per cent. Adjusted EBITDA was €118.4 million, up 8.3 per cent.
Dia operated 7,269 stores at the end of March 2015, with 349 stores opening over the past 12 months, including 18 in Q1.
“The first quarter of 2015 has been intense for our teams, but the hard work has translated into very promising results: a 17-per-cent increase in gross sales under banner, with over 8 per cent growth in adjusted EBITDA,” said Dia chief executive Ricardo Currás.
Commenting on its performance, Barclays European Food Retail Equity Research said, “DIA’s 1Q results are reassuring on several fronts. Firstly, the decline in LFL sales in Iberia continues to moderate, with the 1Q figure of -4.5 per cent clearly better than the -6.7 per cent in 4Q (albeit in line with company-collected consensus).
“Secondly, market share increased in Spain once more. Thirdly, the relatively modest decline in Iberian margins – despite the dilutive impact of the El Arbol acquisition – suggests that the company is reaping the rewards of its increased scale through better buying terms.”
© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones.
