The DIA group has reported a strong rise in net sales growth for its fiscal first half, a result it termed a “key turning point”.
For the six months, group sales were up 8.5% year-on-year to 3.47bn, on like-for-like growth of 2.6%. The results were achieved despite a reduction in its store numbers, as it continues with its transformation process begun three years ago. DIA said overall ticket numbers rose by 5.7%, although the average basket spend dipped by 2.9%, which it said was caused by a shift to lower value items and less spending.
In its home market of Spain, net sales edged up 0.3% to €2.01bn (LFL +2.4%), despite 4% fewer stores. In neighbouring Portugal, sales however slid by 4.5% to €283m (LFL -1.8%), with store numbers down 1%. However, its operations in Brazil recorded a 13.9% jump in sales to €434.6m (LFL +6.9%), while sales in Argentina surged up 53.1% to €652m (LFL +3.4%).
Stephan DuCharme, Executive Chairman at DIA, noted: “The positive evolution of sales during the second quarter allows us to visualise the consolidation of a change that began in 2019 with a profound review of our operating model … There are still challenges ahead that not only affect DIA but the sector and we cannot ignore them, but at the DIA Group we believe that the challenges presented by our current environment are an opportunity for our purpose of proximity and ambition to be more relevant than ever”.
