Spain's DIA Group Like-for-Like Sales Up 8.7% In 2016
Spanish retailer DIA Group posted a like-for-like sales growth of 8.7% in 2016, the highest annual rate achieved since the listing of the company.
Gross banner sales for the year totalled €10.55 billion, an increase of 10.2% on 2015.
Net sales totalled €8.87 billion, an increase of 9% (excluding currency fluctuations).
Its Iberian market saw sales reach €6.82 billion, an increase of 1.1%, and in the emerging markets of Argentina, Brazil, and China, DIA Group posted sales of €3.74 billion, representing a 26.3% increase (in local currency).
Like-for-like growth in South America dipped in the fourth quarter in line with inflation, but both markets posted comparable above-market sales figures. DIA China saw solid growth in Q4, with a comparable sales growth of 3.4% for the year.
Its Spanish arm posted gross sales of €5.97 billion, an upturn of 0.9%. Adjusted EBITDA for the group reached €625 million, up 8.6% (in local currency).
Ricardo Currás, CEO of DIA Group, commented, "Our priorities for 2016 were clear: top-line growth, cash flow generation and focus on customers; and we have delivered".
"Sustained price investment combined with improved customer service is paying off all over the DIA universe".
At the end of 2016, DIA Group had 7,799 stores, with 81 additional stores opened during the year.
"In 2017, we are confident about our growth potential and business performance. We therefore reiterate our commitment to sustainable profitable growth, keeping our 2016-18 goals unchanged", Currás added.
For 2017, DIA has forecast declining store selling area in Spain and reduced inflation in emerging markets. Due to these factors, the retailer predicted mid-single-digit growth in gross sales under banner.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Karen Henderson. Click subscribe to sign up to ESM: The European Supermarket Magazine.