DIA Group boosts gross sales under banner in first half by 12%
July 26, 2016
The company prioritised an improvement in its turnover, setting a target of around 10% growth in gross sales under banner in local currency for fiscal year 2016.
. In the first half of the year, the DIA Group posted gross sales under banner of EUR5.038bn, which implies a 12% increase in local currency versus the same period last year.
This is due to the ongoing improvement in the commercial offer at the company’s ten commercial banners in the countries in which it operates, and an ongoing investment in prices so that customers have access to the highest number of products at the best prices.
In Iberia, gross sales under banner rose by 3.4% to EUR3.342bn, and Spain in particular was up
3,7%, reaching EUR2.940bn. In Argentina, Brazil and China, the increase amounted to 26.7% in local
currency, reaching EUR1.696bn.
DIA Group’s comparable sales climbed by 9.7% versus 7% in the first quarter, which was already
the largest increase published by the company. “The sales trend accelerated in every market in Q2 2016, with positive comparable sales growth in the second quarter and year-to-date in all DIA countries despite the challenging business conditions.
The plans to improve the commercial proposition for our customers combined with significant price
investments in a tough environment are paying off. Cash generation has been strong in the first half of the year and is on track to achieve our ambitious cash from operations target for the 2016-18 period”, stated Ricardo Currás, CEO of DIA Group.
In the first half of the year, underlying net profit reached EUR96.2m, 7.3% less in local currency
than in the same period in 2015 due to an increase in the amortisations for acquisitions and the net
financial income in emerging countries. Adjusted EBITDA reached EUR267m, up 6.8% in local currency.
At the end of June 2016, the DIA Group’s total number of stores amounted to 7,762.
