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DIA completes its construction and closes the half year with losses of 67 million

Date: July 24, 2024 Time: 07:05:14

Dia closes the first half of 2023 with net losses of 67 million euros, improving the result of last year by 35.8%, when these losses were 105 million. It does so despite increasing net sales by 4%, which reached 3,602 million euros. Adjusted Ebitda improves from 51 to 65 million, slightly improving profitability. It also reduces the financial leverage ratio, such that the net debt over Adjusted Ebitda stands at 2.0x. It does so after amortizing debt for 139 million and reducing it by another 118, which leaves the total amount owed at 426 million.

The firm, which has just closed the sale of its business in Portugal, is immersed in a business code that led it to sell a significant number of large stores to Alcampo in Spain, and to put its Clarel perfumery subsidiary on the market, an operation that has had to be cancelled.

“Grupo Dia has closed a positive period and begins a growth consolidation phase,” says the company’s general director, Martín Tolcachir, in a letter attached to the second quarter results. “Dia’s focus on local food distribution is the right one. Spain has increased its market share on a comparable area and Argentina has improved its global share thanks to a value proposition that is the favorite neighborhood and online store of our customers”, review.

The firm claims to have completed the remodeling of 264 stores in Spain and 157 in Argentina, in addition to opening 16 and 41 new stores in each of the geographies during this reorganization period. In addition, they defend the growth of online sales supported by new technological milestones, such as the new app in Argentina and the new website and app in Spain, launched during the first semester.

At the end of June, Dia had 5,435 stores worldwide, 264 fewer than at this point in 2022, since they correspond to those sold to Alcampo. This figure will be reduced next year by another 460, those existing in Portugal. Spain will continue to be the main market, with 3,344 stores; followed by Argentina, with 1,029, where the business is in the expansion phase; and Brazil, with 602 units. Excluding Clarel, 62% of them are franchises and 64% operate under the new Dia concept.

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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