{"id":17567,"date":"2018-02-22T17:04:00","date_gmt":"2018-02-22T17:04:00","guid":{"rendered":"https:\/\/diacorporate.com\/?p=17567"},"modified":"2021-02-17T17:33:50","modified_gmt":"2021-02-17T17:33:50","slug":"dia-posts-gross-sales-under-banner-of-eur10-3bn-up-1-5-versus-the-previous-year","status":"publish","type":"post","link":"http:\/\/diacorporate.tribecamedia.com\/en\/dia-posts-gross-sales-under-banner-of-eur10-3bn-up-1-5-versus-the-previous-year\/","title":{"rendered":"DIA posts gross sales under banner of EUR10.3bn, up 1.5% versus the previous year"},"content":{"rendered":"\t\t
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DIA posts gross sales under banner of EUR10.3bn, up 1.5% versus the previous year<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t
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February 22, 2018<\/p><\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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In 2017, the Dia Group posted gross sales under banner of EUR10.3bn, up 1.5% in local
currency versus 2016. The 10.8% sales growth in emerging countries was offset by a 3.3%
fall in Iberia, where in the last quarter of the year the company generated positive
comparable sales thanks to its price-cutting policy. Moreover, in Argentina and Brazil, the
company has continued to capture market share, reaching 14.1% and 7.8% respectively,
reaching adjusted EBITDA growth of 21.4% in local currency, amounting to EUR142.3m.<\/p>

The group\u2019s comparable sales rose by 3.4% in 2017, with Iberia up by 0.3%. In Q4 2017,
comparable sales improved both in Iberia and in Emerging Countries, with respective rates of
1.1% and 8.6%.<\/p>

Last year, in Spain and Portugal, 613 stores were remodeled, offering its clients new options
such as a roast chicken point of sale and fresh orange juice machines. Specifically, in Spain,
these two new options have been introduced in 445 and 320 stores respectively. In 2018,
more than 1,000 stores are due to be remodeled, offering new services and solutions, which
represents a good growth base for this year.<\/p>

In Spain, sales fell by 3.8% to EUR5.7bn due to the reduction in selling space. In the second\u00a0<\/span>half of the year, the company regained its price competitiveness in the Dia stores, which is a\u00a0<\/span>good starting point for 2018. In the online business in Spain, the company posted sales of\u00a0<\/span>EUR58m, and at the end of 2017 the market share was 10%.<\/span><\/p>

As a result of the 3.9% reduction in selling space in Spain, sales have fallen by 3.8%, to\u00a0<\/span>EUR5.7bn. In the second part of the year the company\u2019s decision to lower its prices has\u00a0<\/span>allowed it to recover its competitiveness in the Dia stores, allows the company to start the\u00a0<\/span>year on a good footing.<\/span><\/p>

2017 was an intense year, with a large number of projects implemented. The main business\u00a0<\/span>focus is on the customer, the company has made progress with its digitalisation initiative\u00a0<\/span>with programmes such as Nexus by Dia (an innovation and talent search platform), and it has strengthened alliances with its partners. Moreover, the company strengthened its\u00a0<\/span>alliances with its partners such as Amazon, where, in addition to Madrid, it is present through\u00a0<\/span>Amazon Prime in Barcelona and Valencia. The Dia Group recently signed a strategic\u00a0<\/span>partnership with CaixaBank to offer a broad range of consumer products to the more than 8\u00a0<\/span>million clients who have the ClubDia loyalty card.<\/span><\/p>

\u201c2017 was the first year since our listing in 2011 that we have not met our financial targets.\u00a0Our results were lower than the revised guidance issued in October, as the investment in\u00a0prices was higher than initially anticipated. Our decision to maintain our price leadership in\u00a0Spain had an impact on our margins that could not be offset by the cost-saving efforts and\u00a0benefits captured by our procurement alliances. However, our customers have appreciated\u00a0our new commercial initiatives and we have significantly improved our LFL sales growth in\u00a0Spain, achieving positive figures in Iberia in Q4 2017. Despite the aggressive pricing policy\u00a0executed, the Dia banner achieved an adjusted EBITDA margin of more than 8% in Spain,\u00a0while La Plaza and Clarel continued to increase their operating margins during 2017. With\u00a0the exception of Spain, all the other countries in which DIA is present (Brazil, Argentina, and\u00a0Portugal) met the targets set for the year\u201d, stated Ricardo Curr\u00e1s, CEO of the Dia Group.\u00a0<\/p>

Underlying net profit amounted to EUR217m, down 19.2% in local currency compared to last\u00a0year, while net attributable profit fell by 38% in local currency to EUR109, 6m, affected by the\u00a0negative results of the discontinued operations in China in 2017.\u00a0The Board of Directors will propose at the Annual General Shareholder Meeting the payment\u00a0<\/span>of a gross dividend of EUR0.18 per share, which represents a payout of close to 51%.\u00a0<\/span>At year-end, the company had a net debt of EUR891m and a total of 7,388 stores in Spain,\u00a0<\/span>Portugal, Argentina, and Brazil.<\/span><\/p>

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GLOSARIO<\/strong><\/p>