Distribuidora Internacional de Alimentación (DIA) Q4 2025 earnings summary

Executive summary

• Achieved strong results in the first year of the strategic plan, transitioning from turnaround to sustained, profitable growth, with Spain driving robust results and Argentina stabilizing amid macroeconomic challenges.

• Spain operations drove growth, with net profit of €166 million, nearly triple 2024, and strong like-for-like sales growth.

• Argentina stabilized sales volumes in H2, achieved positive adjusted EBITDA and free cash flow, and maintained a solid net cash position despite FX headwinds.

• Exceptional share price recovery and increased trading liquidity reflected strong market confidence, with share price up 140%.

• Surpassed all targets set for the first year of the 2025-29 Strategic Plan, accelerating expansion ahead of schedule.

Financial highlights

• Group consolidated gross sales rose 2.5% to €7.08B; Spain up 8.6% to €5.57B, Argentina down 15% to €1.51B due to FX impact.

• Adjusted EBITDA for the group increased 8% to €316M; Spain up 17.7% to €313M, Argentina down 86.7% to €3.5M.

• Net income from continuing operations more than doubled to €115M; Spain contributed €166M, including €52M from deferred tax assets.

• Free cash flow reached €143M for the group, with Spain generating €140M and Argentina €3M; net debt reduced by €79M to €190M.

• Operating cash flow improved to €301M, covering €161M in investments and €61M in financial payments.

Outlook and guidance

• 2026 targets: maintain market leadership in like-for-like growth, accelerate expansion with 100+ net store openings, and further improve adjusted EBITDA margin.

• Group aims for 4–6% annual sales growth, 300 new stores, and 7.5–8.0% adjusted EBITDA margin by 2029.

• CapEx in Spain projected at over €210M in 2026, fully funded by operating cash flow.

• Argentina expected to benefit from recovery in consumption as macroeconomic conditions normalize in 2026.

• Positioned to outperform sector growth in 2026, leveraging a scalable franchise model and customer-centric strategy.