Gross sales under the DIA Group brand in Portugal reached €191,3 million in the first quarter, down 1,2% compared to the same period in 2017, according to results published this Thursday, May 10th, by the retail group.
In Spain, the drop was 4,8%, with sales reaching 1.310,8 million euros.
Globally, in the first quarter, gross sales under the brand totaled €2.270 million, down 9,3% compared to the same period last year, with all markets showing negative performance, largely due to the penalizing effect of currencies. In Argentina, the drop was 15,3%, in Brazil it reached 19,8%, and in the remaining emerging markets it was 17,7%.
In local currency terms, total sales grew 0,2%, with Argentina reporting growth of 22,2%, emerging markets adding 7,9%, and Brazil contracting 4,3%.
In comparable terms, and excluding calendar effects, DIA Group sales increased by 1,9%. Emerging markets grew by 4,2%, and Iberia showed completely flat growth, with Spain performing relatively better than Portugal. In Spain, comparable sales rose by 0,5%.
The group continues with its store remodeling plan, having renovated 457 establishments in Spain in the first three months of the year, out of a total of 480 interventions. Online sales also performed positively, growing by 48% in the neighboring country and reaching €18 million. “ We finished another quarter with positive comparable sales in Spain, being more competitive in terms of price than last year. Simultaneously, we implemented an ambitious remodeling plan with 480 stores renovated across the Iberian Peninsula, with very good results. The adjusted EBITDA margin in Spain was slightly lower than last year and recovered from the decline observed in the fourth quarter of 2017. Emerging markets continue to show growth in sales and adjusted EBITDA, despite the negative effect of deflation in food in Brazil ,” analyzes Ricardo Currás, CEO of the DIA Group.
The manager further states that, for the coming quarters, a recovery trend in sales is expected at the Iberian level, while plans for store renovation and expansion continue. Emerging markets should contribute to an improvement in comparable sales. " Accelerating sales growth is our main priority, as this is the best way to achieve our 2018 objectives ," he adds.
