Source: Company reports

DIA (Distribuidora Internacional de Alimentación), a Spain-based operator of hard-discount supermarket chains, reported 2015 gross sales of €10.5 billion, up 12.2% in the reporting currency versus 2014. Net sales were €8.9 billion, up 11.4% in the reporting currency, but below the consensus estimate of €9.0 billion. Revenue growth was mainly driven by an increase in store count due to acquisitions of outlets from Eroski and El Arbol, two Spanish supermarket chains. In 2015, new store openings totaled 412, of which 145 were integrated from Eroski. Improvement in comps in the Spanish market and strong performance in emerging markets also contributed to revenue growth. Adjusted EBIT declined by 1.1%, to €396.1 million, versus the consensus estimate of €392.9 million. The decline was attributable to the impact of acquisitions. Attributable net income in 2015 was €299.2 million. Net income last year included €120.6 million from the discounted operations of DIA France, which has been divested. Reported EPS was €0.48, down 6.6%. In 4Q15, gross sales were €2.7 billion, up 5.1% year over year, and adjusted EBIT was €126.6 million, down 7.4% year over year. Net profit was €88.9 million, down 5.5%.

SALES BY GEOGRAPHY

Gross revenue from DIA Iberia, which includes Spain and Portugal, increased by 10.5% year over year in 2015, to €6.7 billion. Sales from new acquisitions in Spain accounted for 13.9% of Iberia’s total revenue. Regional comp sales also improved throughout the year, from (5.2)% in 2Q to (1.4)% in 4Q, owing to a return of food price inflation in the market, the remodeling of DIA Maxi stores and the resilience of DIA Market thanks to its strong price leadership. In emerging markets (Argentina, Brazil and China), gross sales in 2015 increased by 15.2%, to €3.81 billion. Comps grew by 9.6% during the year, mainly due to improvements in operational efficiency in Brazil and China and strong organic growth in Argentina.

GUIDANCE

DIA maintains a positive outlook for 2016, as the company expects to post high-single-digit gross revenue growth (in constant currency) during the year.