Spanish retailer DIA reported a strong third quarter performance, boosting its outlook for the full year. Total gross sales reached €2.98 billion in the period, an increase of 6.4 per cent, although 2.9 per cent on a like-for-like basis at constant currency.
In Iberia, gross sales under banner increased by 4.6 per cent to €1.49 billion in the third quarter, with like-for-like sales growth of 1.1 per cent. There was strong sales growth in the emerging markets with a boost of 21 per cent, reaching €902 million. Brazil and Argentina reported "very strong momentum" with 24 per cent and 39 per cent increases at constant currency, respectively. DIA CEO Ricardo Currás said the two nations are the "growth engines" of the company.
In France, gross sales under banner stood at €0.59 billion with a 6.5 per cent fall in same-store sales growth, In spite of that, Adjusted EBITDA grew by 13.1% to €23.5 million
Adjusted EBIT in the third quarter rose by 13.2 per cent to €84.9 million, with net attributable profit up 1.9 per cent and a 30.7 per cent spike in underlying net profit to €50.2 million.
For the nine months until the end of September, gross sales saw a jump of 6.2 per cent to €8,732 million. The retailer's domestic market saw a 5.7 per cent increase in gross sales during the period, while the emerging markets displayed a 20.7 per cent increase.
The nine months figures showed a 27.6 per cent increase in underlying net profit to €115.4 million, with adjusted EBIT up 2.7 per cent to €206.9 million.
DIA has opened 373 stores in the last year and said its focus will be on proximity shopping, particularly in Iberia. Currás said, "We want to continue to grow with complementary formats to be ever-closer to consumers, as reflected in our latest decisions. In summary, good prospects for a difficult 2012 in which we are, once again, achieving the targets." (1 Oct)
© 2012 - ESM: European Supermarket Magazine
