24 July 2020
DIA Q2 2020 Trading Update - Group Net Sales of €1.8bn, 15 per cent Like-for-Like growth
- Fifteen per cent Like-for-Like growth with all markets positive for first time since Q4 2016
- Six per cent Group Net Sales increase from smaller store network and in the face of Brazilian and Argentinian currency effects
- Growth in e-commerce following proactive push - online offer now active in all markets
MADRID, July 16th, 2020: DIA Group (“DIA” or the “Group”), an international food retailer
that operates in Spain, Portugal, Brazil and Argentina, today issued a trading update for
the second quarter of 2020.
|Net Sales1||Like-for-Like Sales|
|Q2 2020 (€m)||Q2 2019 (€m)||Change (%)||vs Q2 2019 (%)|
|Total Stores3 (#)||6,400||6,809||-6.0%|
Commenting on Q2 trading, Stephan DuCharme, Executive Chairman, said:
“Our Q2 trading demonstrates our progress in the last year, with higher net sales on a smaller store network as well as positive Like-for-Like in all markets for the first time since the last quarter of 2016. Transformation initiatives such as improved supply chain and store operations which supported our enhanced fresh offer were key drivers of performance, while our e-commerce expansion delivered twice as many online sales
“Combining these enhanced capabilities with our attractive proximity offer, DIA is and has remained a trusted service provider as lockdown restrictions ease across our markets. With Group Like-for-Like remaining at 10 per cent in June following several months of exceptional one-off trading during lockdown, we expect the accelerated roll out of transformation initiatives including optimized assortment to have a positive impact going forward.”
- Net Sales increased significantly, continuing the positive trend seen in Q1 following easing of lockdown restrictions.
- Positive Like-for-Like growth driven by average basket size increase and supported by supply chain and store operational improvements to deliver an enhanced fresh offer.
- Coordinated e-commerce and express delivery expansion, thanks to one million deliveries during “state of emergency” phase with a peak of 20,000 per day.
- Positive Like-for-Like performance driven by local transformation measures including increased stock delivery frequency to support expanded fresh product offer and continued in-store refurbishment efforts.
- Net Sales up 20 per cent in local currency despite 14 per cent fewer stores4 following strategic closure of underperforming locations, outweighed by the 28 per cent devaluation of the Brazilian Real during the period.
- Strong return to positive Like-for-Like since March, thanks to introduction of new assortment strategy, as well as continued private label development and roll-out.
- Net Sales year on year comparison impacted by 33 per cent devaluation of the Argentinian Peso in the period as well as the country’s highest inflation rate for almost 30 years in 2019.
- Positive Like-for-Like, demonstrating improved operational performance in challenging macroeconomic environment thanks to fresh offer layout improvements and last mile delivery implementation.
H1 2020 vs 2019 NET SALES COMPARISON
|Net Sales1||Like-for-Like Sales|
|H1 2020 (€m)||H1 2019 (€m)||Change (%)||vs H1 2019 (%)|
NOTES TO EDITORS
- The DIA Group will report its 1H 2020 Interim Financial Results on 6th August 2020.
Lara Vadillo / Rebeca Matilla / Leyla Gallego
Phone: +34 618.104.22.168 / 609.41.57.21 / 616.02.51.89
Miren Sotomayor / Natalia Amo
1 Net Sales expressed at current Euro exchange rate and under IAS29 for Argentina
2 All Spain and Portugal figures include Clarel (Q2 2019 has been re-stated to consolidate Clarel)
3 At end of period
4 As of 31.05.20