Spanish retailer Dia has posted a 4.1% increase in comparable sales in the first quarter of its financial year, driven by a contribution of 0.8% from its Iberia stores and 10% from Argentina and Brazil.
The group posted overall gross sales under banner of €2.5 billion for the period, which implies growth of 2.9% in local currency compared to the same period last year and an increase of 6.8% in euros.
Gross sales under banner in its core Spanish market dropped 2%, however, to €1.376 billion, with Dia citing the ‘restructuring of the store network’ and ‘closure of non-profitable stores’ as a core reason for this decline. Portugal was up 0.3%.
Its Argentina and Brazil businesses posted 13% growth, achieving €933 million worth of sales.
On Track
“After the solid operating performance of the first quarter, we are on track to meet our 2017 targets,” commented Dia chief executive Ricardo Currás.
“In Iberia, same-store sales growth remained in positive figures with LFL ex-calendar of 1.4% in the first four months of 2017. Initial tests of the new layout for Dia Market and La Plaza de Dia stores in Spain brought on encouraging results.”
Commenting on the group’s South American division, Currás added that, “While in Argentina DIA continued to see a better-than-the-market trend in terms of top-line growth, Brazil slowed down, impacted by the on-going challenging conditions of the market.
“We are confident that our immediate reaction will push forward our sales in Brazil in the coming months”
Adjusted EBITDA was €123 million, up 1.9% in local currency, however underlying net profit fell by 6.4% in local currency to €39m.
As of the end of March, Dia Group operates a total network of 7,398 stores.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up for ESM: The European Supermarket Magazine.
