Distribuidora Internacional de Alimentación (DIA) H1 2024 earnings summary

Executive summary

• Completed divestments of Brazil, Portugal, and Clarel, now focused on Spain and Argentina with 3,353 stores as of June 2024.

• Spain showed strong growth in sales, profitability, and customer metrics, doubling adjusted EBITDA and achieving positive net results.

• Argentina remained resilient, maintaining profitability and market share despite macroeconomic headwinds.

• Significant improvement in financial results for continued operations, with positive net income and substantial deleveraging.

• Advanced strategic sustainability plan, prioritizing regional development and diversity.

Financial highlights

• Net sales from continuing operations rose 6.3% year-over-year to €2,816 million; gross sales under banner for continued group at €3,310.7 million.

• Adjusted EBITDA for continued group up 61% to €128 million (margin 4.3–4.7%), with Spain nearly doubling and Argentina maintaining margin above 2%.

• Net result for continued group positive at €15.6 million, but total group net loss of €94 million due to discontinued operations.

• Free cash flow positive at €68 million; cash flow from operations at €219 million.

• Net financial debt reduced by €92–99 million year-over-year; liquidity at €327 million.

Outlook and guidance

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

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

• Continued improvement in financial results, cash generation, and capital structure through debt refinancing in 2H 2024.