Distribuidora Internacional de Alimentación (DIA) H1 2024 earnings summary

Executive summary

• Completed business transformation and portfolio simplification, exiting Brazil, Portugal, and Clarel to focus on Spain and Argentina.

• Spain delivered strong sales growth, improved profitability, and customer metrics, while Argentina maintained profitability and gained market share despite macroeconomic headwinds.

• Group returned to profit after tax from continuing operations for the first time in six years, with €16 million in H1 2024.

• Significant deleveraging and positive cash generation, led by Spain.

• Advanced sustainability strategy for 2024-2025, prioritizing regional development and diversity.

Financial highlights

• Gross sales under banner for Spain and Argentina reached €3,311 million, up €73 million year-over-year, despite a 44% reduction in store network.

• Adjusted EBITDA for continued group rose 54% to €128 million (margin 4.7%), with Spain nearly doubling and Argentina maintaining profitability.

• Net income for continued operations was €16 million, a €121 million improvement versus 2021; total group net result was -€93.5 million due to Brazil exit.

• Net debt reduced by €92 million year-over-year to €327 million, leverage ratio improved to 1.1x adjusted EBITDA.

• Free cash flow positive at €68 million, with €88 million from continued operations, led by Spain.

Outlook and guidance

• Focus on organic growth in Spain, customer loyalty, e-commerce expansion, and operational improvements to drive profitability.

• In Argentina, aim to defend profitability and gain market share despite macroeconomic challenges.

• Store network expansion in Spain planned for 2025; continued investment in IT and e-commerce.

• Group aims to further improve profitability, increase cash generation, and strengthen capital structure through debt refinancing.