Spanish retailer Dia closed its financial year 2023 with like-for-like sales growth of 3.1%, to €7.65 billion, while fourth-quarter sales reached €1.98 billion.
Dia said in a trading update that its performance was marked by financial stability, as it prioritised profitability and debt reduction alongside sales growth.
The commitment to proximity paid off in Spain, where gross sales soared 9.4% to €4.85 billion in full year 2023 and by 6.3% (7.1% LFL) in the last quarter, to €1.25 billion, also the seventh consecutive quarter of comparable growth, resulting in increased market share.
Performance Highlights
Online sales grew 26% in the fourth quarter compared to the same period in 2022, contributing to 4% of total sales, driven by the launch of its new e-commerce platform.
In Argentina, gross sales reached €1.89 billion, enabling Dia to consolidate its position as the second national player and leader in Buenos Aires, despite macroeconomic challenges.
Despite the good operational performance, the contribution of Argentina to the group's sales was negatively impacted by the devaluation of the exchange rate, which reached 142% in the fourth quarter of 2023 compared to the same period in 2022.
In Brazil, operations were affected by food deflation that triggered increased competition and promotional aggression in the retail sector.
In Portugal, quarterly gross sales amounted to €202 million, down 1.4% year on year, with the business unit ending the year with a 0.9% increase in gross sales to €826 million (+3.6% LFL).
Outlook 2024
Martín Tolcachir, global CEO of Dia Group said, “Looking ahead, the company faces 2024 supported by the solid transformation carried out and with a vision that places the customer at the centre with the ambition of being their favourite neighbourhood and online store.
“We would like to thank the effort and commitment of the Dia team, our network of franchisees and suppliers, key allies for our business, and their shared passion for the customer.”
In 2023, Dia carried out 523 store renovations (289 in Spain and 234 in Argentina) and 112 openings (36 in Spain and 76 in Argentina), including 31 renewals and 27 openings in the fourth quarter.
Currently, around 2,880 Dia stores operate under the new model, representing 73% of its store network (excluding Clarel and Dia Portugal stores).
The retailer has revamped over 2,400 private-label products in Spain and launched 416 new products last year. Private-label increased its presence in the shopping basket to 54% in Spain, 29% in Argentina, and 23% in Brazil, the retailer added.
