Distribuidora Internacional de Alimentación (DIA) H2 2024 earnings summary

Executive summary

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

• Achieved net profit of €28 million for the group in 2024, with Spain contributing €59 million, and positive cash flow at group level.

• Spain delivered strong like-for-like sales growth above the market for the third consecutive year, with improved customer satisfaction and digitalization.

• Argentina increased market share despite macroeconomic challenges, with higher private label penetration and record NPS.

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

Financial highlights

• Group net profit reached €28 million for 2024; Spain's net income was €59 million; Argentina's net result was €-31 million.

• Adjusted EBITDA for the continued group (Spain and Argentina) was €292 million (+15% year-over-year), with Spain's margin at 6.2%.

• Group gross sales under banner (GSUB) for continued operations reached €6,901 million, up 2.4% year-over-year.

• Operating cash flow increased to €203 million (+40% year-over-year), mainly from Spain.

• Net financial debt reduced to €241 million, with leverage ratio down to 0.8x Adjusted EBITDA from 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.

• No specific guidance for 2025 volume or value, but positive trends expected to continue.

• 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 five-year strategic plan through 2029.

• Focus on enhancing share visibility and financial communication, including a reverse stock split executed in early 2025.