SPAIN: Emerging markets boost Dia profit
- Net profit reaches EUR99.2m
- EBITDA up 5.2%
- Net sales climb 4.7%
Dia put the increase down to the strength of the Spanish market and a 23.7% improvement in sales in emerging countries
Spanish discount retailer Dia has booked an increase in profit in the first nine months of the year, boosted by growth in emerging markets.
The Spain-listed company, which was spun off by France's Carrefour last year, saw its net profit almost triple to EUR99.2m (US$128m) from EUR35.9m in the prior year.
Underlying net profit amounted to EUR115.4m, a 27.6% increase on 2011.
Dia put the increase down to the strength of the Spanish market and a 23.7% improvement in sales in emerging countries.
EBITDA climbed 5.2% to EUR415.6m, while net sales grew 4.7% to EUR7.58bn.
"Our commitment to dynamic growth in emerging countries is increasingly clear," said CEO Ricardo Currás. "Also, we continue to focus on developing proximity, especially in Iberia. We want to continue to grow with complementary formats to be ever-closer to consumers, as reflected in our latest decisions. In summary, good prospects for a difficult 2012 in which we are, once again, achieving the target we set ourselves."
The results met analysts expectations. Kepler Capital Markets analyst Fabienne Caron said "the picture has not changed" since the second quarter and that Dia continues to have the "highest earnings visibility".
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...
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