Spain's DIA Group has posted a 0.2% increase in gross sales to €2.27 billion in the first quarter of its financial year, excluding currency effects.
This was largely boosted by positive sales growth in its Emerging Markets division, which saw an ex-FX increase of 7.9%, following a 22.2% gain in Argentina.
In Europe, sales were down 4.8% in Spain and 1.2% in Portugal, however this was due to a major store renovation programme carried out by the group.
In the first three months of the year, the company remodelled a total of 480 stores, of which 457 were in Spain. The company said that it is currently 'ahead of schedule' for its store remodelling plan.
Like-for-like sales increased 0.5% in Spain, while across the group, comparable sales rose by 1.9%.
Adjusted EBITDA was down by 6.6% in local currency, while underlying net profit fell by 33% to EUR28.6m.
Online Growth
The group enjoyed success with its nascent online division, with in Valencia, Barcelona and Madrid works alongside Amazon Prime Now to ensure speedy delivery to shoppers.
Online sales reached €18m in Spain in the first quarter of the year in Spain, up 48% compared to the same period last year.
Price Competitive
“We achieved another quarter of positive LFL sales growth in Spain in Q1 2018, being more price competitive than in the previous year," commented Ricardo Currás, DIA Group chief executive.
"The adjusted EBITDA margin in Spain was lower than in the previous year but recovered clearly following the sharp decline seen in the last quarter of 2017. Emerging Markets continued growing both in sales and adjusted EBITDA despite the negative impact of food deflation in Brazil."
Currás added that the group expects a positive recovery trend to emerging Iberia in the coming quarters, as the group progresses with its plans to upgrade stores and open new outlets.
"Sales growth acceleration is our top priority, representing the best way to achieve our goals for 2018”, he said.
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
