Distribuidora Internacional de Alimentación (DIA) H1 2025 earnings summary

Executive summary

• Spain delivered 7.5% like-for-like sales growth, outperforming the market and driving group profitability and expansion, with market share rising to 5%.

• Argentina showed resilience amid economic headwinds, with loyalty sales up 9% and expectations for gradual recovery as the economy stabilizes.

• Group financials were robust, with consolidated net sales up 5% year-over-year and net income from continued operations up 64%, returning to a positive net income of €37.8M in H1 2025.

• Share price more than doubled and trading liquidity surged, reflecting renewed investor confidence.

• Major corporate governance enhancements included board expansion, increased independence and diversity, and a new remuneration policy aligned with long-term value creation.

Financial highlights

• Group net sales reached €2.86bn (+5% YoY); adjusted EBITDA rose 4% to €133m, maintaining a 4.7% margin; net income from continued operations was €26m (+64% YoY).

• Spain's net sales grew 7% to €2.2bn; adjusted EBITDA up 20% to €137m (6.2% margin); net income nearly doubled to €48m.

• Argentina's net sales declined 4% to €655m; adjusted EBITDA fell to -€3m; loyalty sales up 9% despite overall volume decline.

• Free cash flow at Group level reached €98m; net debt reduced to €198.8m, with leverage at 0.9x adjusted EBITDA.

• Gross margin improved to 20.9% (up from 17.8% in H1 2024); EBITDA margin at 7.5% (up from 4.4%).

Outlook and guidance

• 2025–2029 Strategic Plan targets 4–6% CAGR in gross sales under banner in Spain, Adjusted EBITDA margin of 7.5–8%, and over 300 new store openings by 2029.

• Focus on omnichannel growth, logistics expansion, and capturing market share in Spain.

• Argentina expected to recover gradually as economic conditions stabilize and disposable income rises, with no plans for inorganic growth or exit.