DISTRIBUIDORA INTERNACIONAL DE ALIMENTACIÓN, S.A. 27 July 2017
Revised
H1/2017
Highlights
In H1 2017, gross sales grew by 4.1% to EUR5.13bn, up 1.9% ex-currency.
Consolidated LFL "ex-calendar" was 4.6% in Q2 2017, with 1.2% in Iberia and 10.7% in Emerging Markets.
Online sales in Spain grew 2.9x in H1 2017 to EUR26.2m.
Adjusted EBITDA increased by 3.3% in the first half of 2017 to EUR278.3m, up 1.7% ex-currency.
The group's adjusted EBITDA margin remained stable during the period at 6.5%, in line with the 2017 outlook.
Operating profit (EBIT) increased by 4.0% in H1 2017 to EUR114.7m, with a 2.7% margin on net sales.
DIA continued with the rationalisation and renovation of stores in Spain, where the total number of stores fell by 91 versus last year.
Net debt at the end of June 2017 stood at EUR1.02bn (1.6x LTM adj EBITDA), EUR104m lower than a year ago.
Comments by CEO Ricardo Currás
"The second quarter of 2017 confirms the solid operating performance of our group in Iberia and South America, with positive same-store sales growth in all our geographies. It has been a busy quarter in Spain, with a peak in June of over 120 upgrades of DIA Market, DIA Maxi and La Plaza stores, with encouraging results. The third quarter is expected to be busy as well to achieve the target of over 500 upgrades by the end of 2017. Brazil improved LFL volumes in the second quarter, with lower inflation, impacted by the ongoing challenging market conditions, while in Argentina DIA continued to achieve a remarkable and strong top-line growth rate. With this set of results, we are on track to meet all our 2017 targets."
Financial Summary
(€m) | H1 2017 | Change | Change (ex-FX) | (€m) | H1 2017 | Change | Change (ex-FX) |
Gross sales u/banner | 5,127 | 4.1% | 1.9% | Net sales | 4,288 | 3.4% | 1.0% |
Iberia | 3,243 | -3.0% | -3.0% | Adjusted EBITDA (2) | 278.3 | 3.3% | 1.7% |
Emerging Markets | 1,885 | 19.1% | 12.1% | Adj. EBITDA margin | 6.5% | 0 bps | |
Like-for-like (1) | 4.3% | Adjusted EBIT (2) | 162.9 | 3.1% | 2.2% | ||
Iberia | 0.9% | Adj. EBIT margin | 3.8% | - 1 bps | |||
Emerging Markets | 10.4% | Underlying net profit | 106.0 | 4.3% | 3.2% |
Excluding the calendar effect (2) Adjusted by non-recurring items
/ 1
All company figures included in this document are expressed with DIA China re-expressed as discontinued unless otherwise stated
Sales Performance
Group
Emerging Markets
H1 2017 gross sales under banner increased by 4.1% (1.9% ex-currency) to EUR5.13bn.
Comparable sales growth amounted to 4.3% (excluding a -0.7% calendar effect).
In Q2 2017, gross sales under banner grew by 1.7% (0.9% ex-currency) to EUR2.62bn, with LFL of 4.6% and a -1.2% calendar effect.
Iberia
Q2 2017 gross sales under banner decreased by 4.1% to EUR1.67bn, with 1.2% comparable sales growth (excluding a -1.7% calendar effect) and a -2.7% space contraction.
The negative calendar effect of Q2 2017 in Iberia is justified by the different seasonality of Easter holidays, which is mostly reflected in Spain.
In Spain, gross sales under banner declined by 3.6% in H1 2017 to EUR2.84bn, which is namely explained by the 3.0% decrease in store selling area and negative calendar effect in the period.
In Portugal, gross sales under banner rose by 1.5% in H1 2017 to EUR0.41bn, with a flat performance of commercial space in the period.
During Q2 2017, DIA speeded up the upgrade process in Iberia, reaching a total of 221 conversions (vs. 70 in Q1 2017) of DIA Market, DIA Maxi and La Plaza stores.
In H1 2017, gross sales under banner increased by 19.1% to EUR1.88bn, with a 7.0% positive currency impact (a 19.6% appreciation of the Brazilian Real in the first half of 2017). Same-store sales grew by 10.4% in the period, with a -0.2% calendar effect.
Q2 2017 gross sales increased by 13.6% to EUR0.95bn, with 10.7% comparable sales and a -0.3% calendar effect.
Like-for-like sales growth continued to reflect the slowdown in food inflation (getting close to zero in Brazil by the end of Q2 2017).
Despite this factor, comparable sales growth rates remained stable in Argentina and improved in Brazil during the second quarter of 2017.
Low-single-digit contribution of new space in the period, still impacted by the closure of 38 Cada DIA stores in Argentina at the end of 2016 and the temporary closure of some stores in the area of Buenos Aires that has been already reversed.
Gross sales in Brazil amounted to EUR1.0bn in the first half of 2017, 22% higher than in the same period last year. In Argentina, gross sales grew by 15.7% to EUR0.88bn in the same period.
Gross Sales under Banner | |||||
(€m) | H1 2017 | % | Change | FX effect | Change (ex-FX) |
Spain | 2,833.9 | 55.3% | -3.6% | 0.0% | -3.6% |
Portugal | 408.7 | 8.0% | 1.5% | 0.0% | 1.5% |
IBERIA | 3,242.6 | 63.2% | -3.0% | 0.0% | -3.0% |
Argentina | 880.3 | 17.2% | 15.7% | -7.2% | 22.9% |
Brazil | 1,004.5 | 19.6% | 22.2% | 20.0% | 2.2% |
EMERGING MARKETS | 1,884.8 | 36.8% | 19.1% | 7.0% | 12.1% |
TOTAL DIA | 5,127.4 | 100.0% | 4.1% | 2.2% | 1.9% |
Net Sales | |||||
(€m) | H1 2017 | % | Change | FX effect | Change (ex-FX) |
Spain | 2,391.0 | 55.8% | -4.5% | 0.0% | -4.5% |
Portugal | 326.4 | 7.6% | 0.7% | 0.0% | 0.7% |
IBERIA | 2,717.4 | 63.4% | -3.9% | 0.0% | -3.9% |
Argentina | 701.3 | 16.4% | 15.6% | -7.2% | 22.8% |
Brazil | 868.8 | 20.3% | 21.6% | 19.9% | 1.7% |
EMERGING MARKETS | 1,570.2 | 36.6% | 18.9% | 7.5% | 11.4% |
TOTAL DIA | 4,287.6 | 100.0% | 3.4% | 2.4% | 1.0% |
Q2 2017 Results
Net sales
In Q2 2017, net sales increased by 0.8% to EUR2.2bn. Exchange rates had a 0.9% positive impact in this period.
Operating Results
Adjusted EBITDA rose by 2.6% to EUR155.3m, 1.5% growth ex-currency. The adjusted EBITDA margin remained stable in the quarter, up by 13 bps.
Depreciation and amortization decreased by 0.6% to EUR57.6m (2.0% ex-currency), which reflects a 1.4% positive currency effect.
Adjusted EBIT rose by 4.7% to EUR97.7m, with a 1.0% positive effect from currencies.
Non-recurring items amounted to EUR35.7m in the quarter, while non-recurring cash items declined by 3.8% in the period to EUR20.8m, which compares with the 21.9% increase published in Q1 2017.
Other non-recurring items almost tripled in Q2 2017 due to the asset write-offs related to the closure of stores in Spain.
EBIT climbed by 1.0% in the second quarter of 2017 to EUR61.9m (-0.4% ex-currency).
Profits
Despite the higher volume of non-recurring items held during the period, net profit from continuing operations was almost flat in Q2 2017, with a small 0.4% increase to EUR38.0m.
Underlying net profit rose by 11.3% to EUR67.0m, up 9.9% ex-currency.
DIA - Distribuidora Internacional de Alimentación SA published this content on 27 July 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 27 July 2017 05:59:08 UTC.
Original documenthttp://www.diacorporate.com/recursos/doc/corporativo/20130507/ingles/second-quarter-2017-results.pdf
Public permalinkhttp://www.publicnow.com/view/26DC72C4A364AF94403B80AE883DEA45A1B7F9DB
