DIA Group generates net underlying profit of EUR267m in 2014, up 8.4%
February 23, 2015
The DIA Group’s gross sales under banner reached EUR9.4bn, up 9.9% in local currency
The Board of Directors will propose the payment of a dividend of EUR0.18 per share. In addition, it has approved a EUR200m share buyback programme.
The DIA Group posted 9.9% growth in gross sales under banner in local currency, reaching EUR9.4bn. By region, in emerging markets sales excluding the currency effect were up by close to 31%. In Argentina and Brazil registered a record year, with 213 store openings. In Iberia, gross sales under banner fell slightly by 0.8% due to the deflationary climate.
In Spain, despite the impact on the sector of falling prices, gross sales under banner rose by 0.4% to EUR5.219bn.
“Thanks to the excellent work carried out by our teams, for 2014 we would highlight the successful sale of El Árbol and the integration of Schlecker. Last year, more than 600 stores were transformed from Schlecker to the new Clarel banner, and more than 1,000 new own-label SKUs were launched, while more than 400 owned stores were opened, along with 320 franchised stores. Our outlook for 2015 is an ideal mix of growth and sustainability in our main markets. In Spain, DIA will continue to explore opportunities to consolidate its market position, while we continue to rapidly expand our successful discount model in Argentina and Brazil.” stated Ricardo Currás, CEO of the DIA Group.
Another key milestone is that the franchised stores in the five countries in which DIA is present reached 3,085 stores, with Spain having the most franchised stores (1,648.8), reflecting DIA’s focus on this business model.
At the end of 2014, underlying net profit reached EUR267m, up 8.4% versus 2013. Attributable net profit jumped by 59.4% to EUR333.6m due to the positive effect of the sale in France. Adjusted EBITDA reached EUR558m, up 5.1% in local currency, while the sales margin remained stable at 7.3%.
At the AGM, the Board of Directors will propose a dividend distribution of EUR0.18 gross per share, up 12.5% compared to 2013, representing a payout of 44% of underlying net profit. In addition, DIA’s Board of Directors has approved a EUR200m share buyback programme. Accordingly, it has agreed to include on the agenda for the upcoming AGM in April the necessary capital reduction in order to amortise the shares acquired under this share buyback programme.
In 2014, the EPS adjusted increased 8.9% (11.3 at constant rate) up to 0.415 euros.
