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 digitalization.

• Argentina gained market share despite a sharp consumption decline, maintaining positive EBITDA.

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

• Advanced sustainability initiatives and execution of the 2024-25 strategic plan.

Financial highlights

• Group revenue from continued operations (Spain and Argentina) reached €6,901M, up nearly €160M year-over-year; adjusted EBITDA rose to €292M (margin 5.0%).

• Spain's adjusted EBITDA doubled in two years to €266M (6.2% margin); net income reached €59M.

• Argentina contributed €26M in adjusted EBITDA (1.6% margin) but reported a net loss of €31M due to volume decline and hyperinflation.

• Group continued net income at €28M; Brazil's sale led to a -€107M impact.

• Net debt reduced to €241M (0.8x adjusted EBITDA), down €181M from the prior year.

Outlook and guidance

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

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

• No specific volume or value guidance for 2025, but expectations are for continued positive trends.

• Dividend distribution is restricted under current refinancing but may be reassessed as obligations are met.