Distribuidora Internacional de Alimentación (DIA) H2 2024 earnings summary

Executive summary

• Completed transformation and simplification, divesting Clarel, Portugal, and Brazil, focusing on Spain and Argentina as core markets.

• Spain achieved like-for-like sales growth above the market for the third consecutive year, driven by volume, store modernization, and improved customer satisfaction.

• Argentina gained market share despite macroeconomic challenges and sector contraction, maintaining positive EBITDA and record NPS.

• Significant financial improvement with positive net income in Spain, group net profit of €28M, and strong cash generation.

• Advanced sustainability initiatives and digitalization in both Spain and Argentina.

Financial highlights

• Group continued operations' net sales rose 17.8% year-over-year to €5,880M, with adjusted EBITDA up 15.4% to €292M.

• Spain's adjusted EBITDA doubled in two years to €266M (6.2% margin); net result €59M; positive cash flow and reduced Capex.

• Argentina's adjusted EBITDA was €26M (1.6% margin); net result -€31M; cash protected via Capex and working capital management.

• Group net profit reached €28M for 2024; Brazil sale resulted in a non-recurring negative effect of €107M.

• Net financial debt reduced to €241M (0.8x leverage), down from €422M (2.0x) in 2023.

Outlook and guidance

• Priorities for 2025+ include organic growth and store expansion in Spain, supporting Argentina's profitability and cash, and consolidating financial improvements.

• Strategic alternatives, both organic and inorganic, will be evaluated for long-term value creation.

• Capital Markets Day scheduled for March 20, 2025, to present the new strategic plan through 2029.

• Financial communication plan aims to improve stock visibility and perception, with increased analyst coverage and a reverse split executed in early 2025.