SPAIN: Dia FY profit boosted by Brazil, Iberia growth
- Net profit soars 60.3%
- EBIT up 32.6%
- Net sales climb 6.7%
Dia said its priorities over the coming fiscal year will include “speeding up the rate of openings in Brazil"
Spanish discount retailer Dia said it ended fiscal 2012 having achieved the targets it set itself at the start of the year after booking an increase in profit boosted by growth in Iberia and Brazil.
Earnings in the 12 month period were up 60.3% to EUR157.9m (US$208.2m), the company reported this morning (21 February). The increase was driven by profit growth in Iberia and Brazil, which recorded earnings growth of 2.9% and 16.9%, respectively.
EBIT in the period grew 32.6% to EUR287.6m, while sales were up 6.7% to EUR11.68bn.
CEO Ricardo Currás said Dia's priorities over the coming fiscal year will be to "speed up the rate of openings in Brazil and strengthen the proximity profile in Spain, with new complementary formats".
- Turnover reached EUR11.679bn, up 6.7%.
- Iberia and Brazil are the main growth drivers.
- At the next Annual General Meeting, DIA’s Board of Directors will propose an 18% dividend increase to EUR0.13 gross per share, as well as the amortization of 4.16% of the shares held as treasury stock.
- DIA estimates that adjusted EPS could continue to post double-digit growth.
Madrid, 21 February 2013. DIA ended fiscal 2012 having achieved the targets it set itself at the start of the year. Gross sales under banner grew by 6.7% at constant rates to EUR11.679bn, thanks to the solid business performance in Iberia and in emerging countries such as Brazil and Argentina. In Spain, turnover reached EUR4.920bn, which represents a 5.4% improvement thanks to the good performance of all its formats.
“Although we are facing challenges in 2013, we believe that we will be able to resolve any difficulties, focusing our investment efforts on regions where we are seeing the most growth. DIA’s priorities over the coming fiscal year will be to speed up the rate of openings in Brazil and strengthen the proximity profile in Spain, with new complementary formats”, declared Ricardo Currás, CEO of DIA.
Adjusted net profit reached EUR190m, up 19.3% versus 2011 thanks to the good business performance. Adjusted EBITDA grew by 9.4% at constant rates, to EUR609.5m, while adjusted EBIT reached EUR330.5m, rising by 14.3%. At the end of the last fiscal year, the store network included 6,914 stores. Including the stores related to the acquisition of Schlecker, this brings the total number to around 8,000 stores.
In the next Annual General Meeting, DIA’s board of directors will propose a dividend distribution of EUR0.13 gross per share, which represents an 18% increase. Moreover, the company will also propose the amortization of 4.16% of the shares held as treasury stock.
Over the 2013-2015 period, the company expects to maintain double-digit adjusted EPS growth.
Original source: Dia
Over the course of the forecast period, Dia is expected to continue with its process of consolidating its restructuring plan, which has so far been, and will continue be, based on three pillars: the r...
- Interview part 1: BRF CFO Augusto Ribeiro
- Comment: Why Gardein is Pinnacle's ideal fodder
- BRICs: The thinking behind Mondelez's Vietnam deal
- JBS sees big opportunity from Primo Smallgoods
- Interview: How BRF plans growth in stagnant Europe
- Kellogg trumps Abraaj bid for Bisco Misr
- Danone, General Mills, Chobani "mislead parents"
- United Biscuits UK plant to start strike action
- Raisio buys UK, Ireland and Belgium Benecol ops
- Wrigley opposes Perfetti Van Melle "WTF" TM