25 February 2021

DIA 2020 Financial Results - DIA achieves €123 million adjusted EBITDA supported by 8% Like-for-Like Growth

  • Multi-year business transformation on track, driven by empowered country leadership and strategic corporate centre
  • 2020 business performance propelled by new commercial offer, rollout of updated franchise model, online expansion and operational improvements
  • Positive cashflow from operations and stable trade working capital support solid liquidity position
  • Agreement with syndicated lenders, bondholders and reference shareholder establishes sustainable long-term capital structure

MADRID, 25th February 2021: DIA Group (“DIA” or the “Group”), the international food retailer operating in Spain, Portugal, Brazil and Argentina, today issued a trading update for the fourth quarter and full year 2020.

2020 FINANCIAL HIGHLIGHTS (all figures in € million)

[€ million] 2020 2019 Change (%)
Like-for-like sales growth (%) 7.6% -7.6% -
Net Sales 6,882.4 6,870.5 0.2%
Gross Profit 1,498.5 1,318.5 13.7%
Adjusted EBITDA 122.9 (90.9) n/a
EBIT (182.1) (580.2) 68.6%
Net attributable profit (363.8) (790.5) 54.0%
[€ million] 2020 2019 Change (%)
Trade Working Capital (negative) 609.2 607.9 1.3 inflow
Net Financial Debt  1,867.8 2,027.7 (159.9)

 

  • Group Net Sales increased 0.2% on a streamlined store network (-6.9%), and despite Brazilian Real and Argentinean Peso devaluations, and lower tourist traffic in Spain and Portugal as a result of Covid-19 related restrictions.
  • Group Comparable Sales (Like-for-Like) reached 7.6%, continuing the positive momentum initiated in the first quarter, driven by ongoing business improvements efforts and resulting in a 24.6% increase in average basket size.
  • Gross Profit (as a percentage of Net Sales) increased to 21.8% from 19.2% during 2020 thanks to increased volumes and positive operational improvements.
  • Adjusted EBITDA turned back positive to 1.8% as a percentage of Net Sales.
  • Net Result amounted to negative 363.8m, impacted by foreign exchange losses recognized mainly related to the depreciation of the Brazilian Real.
  • Available Liquidity: Ample levels at 397m (December 2019: 421m) with 87% in the form of Cash or Cash equivalents.
  • Net Financial Debt (ex IFRS16): 1,276m down 46m versus December 2019 thanks to positive Cash Flow from Operations, controlled Capital Expenditures and stable Trade Working Capital.

Commenting on the results, Stephan DuCharme, Executive Chairman, said:

“Our financial results demonstrate the progress DIA makes every day along its multi-year strategic roadmap. Having laid the foundations in 2019, 2020 saw us implement continuous commercial and operational improvements in each of our four countries of operation, led by empowered country management teams.

I would sincerely like to thank our teams in all countries for their outstanding work and contribution to our results, particularly in the complex trading environment created by Covid-19 and the additional responsibility to our communities as a neighbourhood food retailer.

DIA Group made a concerted effort in 2020 to re-build trust and build long-term relationships with all external stakeholders as a foundation for a transparent, performance-oriented business culture.

Our business is now also underpinned by a stable long-term capital structure thanks to the recapitalization and refinancing solution that is underway, led by our reference shareholder, allowing management to focus exclusively on customers and business objectives.

In 2021, we will continue to relentlessly focus on improving our position as a modern proximity food retailer with innovative commercial and e-commerce solutions delivered by motivated employees and franchise partners – growing closer to our customers every day.”

INVESTOR PRESENTATION DETAILS FOR PARTICIPANTS

Date: February 25th, 2021 at 9:30 a.m. CEST

Webcast link: https://edge.media-server.com/mmc/p/dmyfbznp

Participants can also access the webcast through our corporate website:

www.diacorporate.com

NOTES TO EDITORS

  • The DIA Group will report its FY 2020 Financial Results on 26th February 2021.

CONTACT DETAILS

MEDIA

Lara Vadillo
Phone: +34 619.22.65.87
Email: comunicacion@diagroup.com

INVESTORS RELATIONS

Miren Sotomayor / Natalia Amo
Phone: +34 91.398.54.00 Ext. 33699 /33426
Email: investor.relations@diagroup.com

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