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".
Sainsbury's has insisted it has "no plans" to open stores in India following a claim from a local government minister the UK grocer was interested in entering the market....
- Nomad's post-Iglo opportunities
- Comment: Nestle reacts to world of 3G and Buffett
- Focus: Can Arla jump-start UK flavoured milk?
- What the analysts say: Nestle's Q1
- Why it is too early to call Unilever food revival
- Arla to launch protein dairy drink in UK
- Pork Farms' Kerry pastry deal nears green light
- UPDATE: Iglo Foods sold to Nomad for EUR2.6bn
- McCormick to move roles to Poland
- ABF grocery profits up but pressure on bread