SPAIN: DIA Reports Strong FY Growth

The DIA group has reported strong underlying sales growth for its last fiscal year, helped in particular by its performance in emerging markets.

For 2016, net sales were up 9.02% to €8.9bn on a constant-currency basis, although currency fluctuation meant they were down 0.6% on a reported basis. Adjusted operating profit rose by 5.8% on a constant-currency basis to €392.7m (-0.9% reported), while underlying net profit was up 3.9% on the same basis to €258.6m (+1.8% reported)

In Iberia, gross sales under banner were up 1.1%, on like-for-like growth of 1%, while they jumped up 26.3% in emerging markets on a constant-currency basis (-10.2% reported). The latter growth was driven by growth in Argentina (+36.4% constant-currency) and Brazil (+17.9% constant-currency), while China performed modestly with a 3.6% increase on the same basis.

DIA opened 81 net new stores during the year, driven by expansion in Latin America (+121 in Brazil and +26 in Argentina) as well as Portugal (+2) which offset downsizing in Spain (-66) and China (-2). At the end of the year, the group operated a total of 7,799 outlets, including 3,969 franchise outlets.

Ricardo Currás, Group CEO, noted: “Sustained price investment combined with improved customer service is paying off all over the DIA universe.” He said the performance meant the group is sticking with its forecasts for the 2016-18 period.