Distribuidora Internacional De Alimentacion Sa · BME:DIA
Distribuidora Internacional De Alimentacion Sa — Grupo Dia — H1 2024 Earnings Presentation
57 slides from Distribuidora Internacional De Alimentacion Sa's earnings presentation, Jul 30, 2024
Slide 1: Grupo Dia H1 2024 Earnings Results Presentation
Grupo Dia H1 2024 Earnings Results Presentation July 30th, 2024 1
Slide 2: Legal disclaimer
Legal disclaimer This presentation contains forward-looking statements and information regarding Distribuidora Internacional de Alimentación, S.A. (Dia) and its subsidiaries based on the current beliefs of Dia's management, its main expectations and assumptions, as well as the information currently
Slide 3: Disclaimer regarding the results shown in this presentation
Disclaimer regarding the results shown in this presentation In the semi-annual financial statements, IFRS5 accounting standard has been applied, where the figures corresponding to the business of Clarel, Portugal, Brazil, and the large format stores in Spain sold to Alcampo are presented separately
Slide 4: Context of the 1H24 Results for Grupo Dia
Context of the 1H24 Results for Grupo Dia ✓ In 1H24, Dia concludes its transformation and business simplification process. ✓ Having completed the sale of the operations in Brazil, Portugal, and Clarel, Dia now focuses solely on the markets that have proven capable of growing and improving their resu
Slide 5: The new Grupo Dia: H1 2021 vs H1 2024
The new Grupo Dia H1 2021 H1 20241 Business Units Stores 5,993 3,353 -44% Gross Sales 3,813M 3,311M -13% (GSUB) Adjusted EBITDA 48M 128M +80M (% Net Sales) (1.5%) (4.7%) (+3.2pp) Net Result -105M 16M +121M Leverage Ratio2 3.1x 1.1x -2.0x 5 (1) Figures for the continued perimeter (Spain and Argentina
Slide 6: Grupo Dia H1 2024 Highlights
Grupo Dia H1 2024 Highlights 6
Slide 7: Grupo Dia H1 2024 highlights
Grupo Dia H1 2024 highlights 1. Spain continues its organic growth with LFL (Like-for-Like) ahead of the market • Growth of LfL sales above inflation and the market, driven by volume • Continuous improvement of customer NPS and increase in the number of tickets • Increase in the number of digital cu
Slide 8: Spain continues its organic growth with LFL ahead of the market
01. Spain continues its organic growth with LFL (Like-for-Like) ahead of the market 8
Slide 9: Spain continues with strong LFL sales growth
1. Spain continues with strong LFL sales growth Spain managed to close 1H24 with LFL sales of +5.1%, marking two consecutive years of LFL growth. The volume, driven by the acquisition of new customers, has been the engine of this growth, which has outpaced the period's inflation. Spain1 – Evolution2
Slide 10: Number of tickets continues to increase, Dia brand gaining weight
1. Number of tickets continues to increase, with Dia brand gaining weight and maintaining a balance between Dia products and national brands. Dia's value proposition continues to demonstrate its success through the increase in the number of tickets. Additionally, we continue to bet on a balance betw
Slide 11: Continuous improvement in customer satisfaction
1. The success of Dia's new value proposition is reflected in a continuous improvement in customer satisfaction. The increase in our customers' satisfaction also confirms the success of our strategy focused on proximity, an easy and quick shopping experience, and the best value for money. The percep
Slide 12: Online business continues to grow in Spain
1. The online business continues to grow, gaining digital customers and increasing the share of e-commerce in total sales. Efforts in developing the online channel are paying off. The base of digital customers has doubled compared to 1H23, and the share of online sales has increased by 1.3pp compare
Slide 13: Argentina gains market share despite challenging macroeconomic context
02. Argentina gains market share despite the challenging macroeconomic context 13
Slide 14: Argentina impacted by sharp adjustment in consumption
2. Argentina has been impacted by the sharp adjustment in consumption as a consequence of the macroeconomic situation. Dia Argentina has managed to gain market share during 1H24, growing above the competition despite the country's complex macroeconomic context during the first half of 2024, which ha
Slide 15: Number of tickets grows with Dia brand gaining relevance
2. Despite consumption decline, the number of tickets continues to grow, with the Dia brand gaining relevance in a context of customer savings. Despite the context, Dia's value proposition continues to demonstrate its success through the increase in the number of tickets. The own brand has gained we
Slide 16: Customer satisfaction reaches historical highs
2. Customer satisfaction reaches historical highs, reinforcing our value proposition and our commitment to savings. Our customers' satisfaction continues to increase year after year, confirming the success of the implemented strategy. During 1H24, we reached the highest NPS index in Argentina's hist
Slide 17: Online business gaining customers in Argentina
2. The online business is gaining customers and increasing its share of total sales driven by the improvements implemented in recent months. Advances in omnichannel capabilities are also notable. Digital customers reached 34.6% of the total customer base, and online sales accounted for 1.3% of total
Slide 18: Completion of the Group's portfolio simplification process
03. Completion of the Group's portfolio simplification process 18
Slide 19: Sale of operations in Portugal, Clarel, and Brazil completed
3. The sale of operations in Portugal, Clarel, and Brazil have been completed. Operation Main details Impacts Total cash to be received from the operation ✓ Agreement with Grupo Trinity for the sale of Clarel (1,000 stores), the (estimated): business unit dedicated to personal and home care. - 2024
Slide 20: Substantial improvement in financial results and debt
04. Substantial improvement in financial results and debt 20
Slide 21: Spain: sales growth and doubling Adjusted EBITDA
4. Spain consolidates improvements with sales growth and doubling Adjusted EBITDA vs '23 (and tripling vs '22). Despite the reduction in the number of stores, Spain has been able to grow its total sales and LfL sales. In addition to sales growth, operational improvements have significantly increased
Slide 22: Spain: positive net result and cash generation
4. These improvements are reflected in a positive net result as well as positive cash generation. Spain1 – Net Result Spain1 – Cash Flow generation2, 3 The Net Result in Spain has been positive in 1H24, reaching 25 Cash generation has been positive with a significant reduction million Euros, a growt
Slide 23: Argentina achieves positive Adj. EBITDA
4. Despite the difficult macroeconomic situation and consumption decline, Argentina achieves positive Adj. EBITDA and maintains profitability. Argentina – GSUB1 Argentina – Adjusted EBITDA Sales have been strongly impacted in '24 by the decline in Despite the decline in sales, the impact on Adjusted
Slide 24: Argentina: net result and cash flow protected by Capex
4. The decline in consumption has impacted the net result, but cash flow is protected by adjusting investments in Capex. Argentina – Net Result Argentina – Cash Flow generation1, 2 The devaluation of the peso also impacted Argentina's Net During 1H24, an effort has been made to protect cash by Resul
Slide 25: Continued Group sustained increase in sales
4. The continued Group has delivered a sustained increase in sales, driven by the growth in Spain. Group – GSUB • GSUB of the continued Group increased by EUR 73.4 million compared to 1H23, thanks to the performance in Spain, offsetting the decline in consumption and the devaluation of the Argentine
Slide 26: Adjusted EBITDA and Group profitability have grown
4. In addition, the Adjusted EBITDA and the Group's profitability have grown, confirming the consolidation of the improvements implemented. Group – Adjusted EBITDA and margins • The Group's adjusted EBITDA from continuing operations grew by EUR 44.8 million vs. 1H23 (+54%) with a margin expansion of
Slide 27: Spain achieves €25M profit in 1H24
4. Spain achieves €25M in profit in 1H24, improving by €59M vs ‘23 and by €79M vs ‘22. The sale of Brazil results in an accounting impact of -€107M. Group – Net Result • Group continued achieves a net income of EUR 15.6 million, improving by approximately EUR 46 million compared to 1H23, driven by t
Slide 28: Group achieves positive cash generation of €68M
4. The Group achieves positive cash generation of €68M (€88M without the impact of discontinued activities). Grupo – Resultado Neto Group – Cash Flow generation Grupo – Generación 1, 2 de caja1 • Group Continued cash generation was positive in 1H24, with €88 million led by Spain, thanks to improved
Slide 29: Deleveraging and reduction in debt
4. The improvement in the Group's financial results, as well as the sale of assets, has enabled deleveraging and a reduction in debt. The cash generation from Spain has financed the sale of the business in Brazil, while the sale of the businesses in Portugal and Clarel has contributed to the Group's
Slide 30: Strategic Sustainability Plan 2024-2025
05. Strategic Sustainability Plan 2024-2025 30
Slide 31: Progress within the Strategic Sustainability Plan 2024-25
5. During 1H24, significant progress has been made within the Strategic Sustainability Plan 2024-25 – “Cada día cuenta" During 1H24, the execution of sustainability objectives continued in line with the strategic roadmap developed for the 2024-25 period. The new plan includes four work axes and iden
Slide 32: 2024+ Priorities
2024+ Priorities 1. Drive organic growth in Spain • Enhance customer loyalty through Cub Dia. • Increase frequency and average basket size by offering a wide range of local fresh products and a balance between manufacturer brands and high-quality Dia products. • Expand e-commerce coverage and servic
Slide 33: Q&A
Q&A ACTUALIZAR CON BUENAS FOTOS O IMAGENES 33
Slide 34: Contact details
Contact details Investor Relations investor.relations@diagroup.com Media and Communications comunicacion@diagroup.com Access details for our H1 2024 Results webcast: Date: July 30th, 2024, at 10:00 a.m. CET Link al webcast 34
Slide 35: Appendix
Appendix Mas cerca,
Slide 36: GSUB, Net Sales and Like-for-like
GSUB, Net Sales and Like-for-like •1 The gross sales of the “Group continued” totaled €3,310.7 million in 1H24 (+2.3% vs. 1H23), driven by strong performance in Spain, partially offset by decreased consumption and the exchange rate impact in Argentina. • Like-for-like sales of the “Group continued”
Slide 37: Store network evolution
Store network evolution •1 The total network reaches 2,308 stores after a net reduction of 10 stores. 1• The total network reaches 1,045 stores after a net reduction of 3 stores. 2 • The franchise mix accounts for 64% of the network (+0.9 percentage points vs. 2023). 2• The franchise mix accounts fo
Slide 38: Income Statement summary (excluding discontinued reclassifications)
Income Statement summary (excluding reclassifications of discontinued operations) Income Statement (excluding reclassifications of discontinued operations) •1 Gross Profit falls by 19.8% compared to 1H23, explained by the decline (In millions of Euros) 1H23 1H24 Var. vs. 1H23 % Like-for-Like 5.7% -5
Slide 39: Income Statement (excluding discontinued reclassifications)
Income Statement (excluding reclassifications of discontinued operations) Income Statement excluding reclassifications of discontinued operations (In millions of Euros) 1H23 % Net Sales 1H24 % Net Sales Var. vs. 1H23 Gross Sales Under Banner1 4,437 3,949 (11.0%) Like-for-like sales growth (%) 5.7% -
Slide 40: Income Statement by country (1H24), excluding reclassifications
Income Statement by country (1H24) (excluding reclassifications of discontinued operations) Income Statement excluding reclassifications of discontinued operations Spain (In millions of Euros) Clarel1 Portugal Argentina Brazil Group Total w/o Clarel1 Gross Sales Under Banner1 2,449 79 251 862 308 3,
Slide 41: Income Statement summary (including discontinued reclassifications)
Income Statement summary (including reclassifications of discontinued operations) Income Statement (including reclassifications of discontinued operations1) (In millions of Euros) 1H23 1H24 Var. vs. 1H23 •1 Gross Profit falls by 0.6% compared to 1H23, explained by the decline % Like-for-Like 7.2% -5
Slide 42: Income Statement (including discontinued reclassifications)
Income Statement (including reclassifications of discontinued operations) Income Statement including reclassifications of discontinued operations (In millions of Euros) 1H23 % Net Sales 1H24 % Net Sales Var. vs. 1H23 Gross Sales Under Banner1 3,237 3,311 2.3% Like-for-like sales growth (%) 7.2% -5.0
Slide 43: Income Statement by country (1H24), including reclassifications
Income Statement by country (1H24) (including reclassifications of discontinued operations) Income Statement including reclassifications of discontinued operations Spain (In millions of Euros) Clarel1 Portugal Argentina Brazil Group Total w/o Clarel1 Gross Sales Under Banner1 2,449 - - 862 - 3,311 L
Slide 44: Adjusted EBITDA reconciliation to Net Results (excluding reclassifications)
Adjusted EBITDA reconciliation to Net Results (1H24) (excluding reclassifications of discontinued operations) •1 Net result for the period is -€94 million, explained by losses in Brazil, amounting to €107 million, partially offset by Spain. • Spain, excluding Clarel, achieves a positive net income o
Slide 45: Adjusted EBITDA reconciliation to Net Results (including reclassifications)
Adjusted EBITDA reconciliation to Net Results (1H24) (including reclassifications of discontinued operations) •1 Net result for the period is -€94 million, explained by losses in Brazil, totaling €107 million, partially offset by Spain. • Spain, excluding Clarel, achieves a positive net income of €2
Slide 46: Cash Flow breakdown (1H24)
Cash Flow breakdown (1H24) •1 During 1H24, the Group achieved significant deleveraging through a total cash flow of EUR +95 million in the semester. • The Group has achieved positive cash generation (FCF) of EUR 68 million from operations, driven by the FFO generated in Spain. 2 • The gains from the
Slide 47: Capital Management & Financing (I): Net Financial Debt reconciliation
Capital Management & Financing (I) Net Financial Debt reconciliation Net Financial Debt reconciliation December 1H24 1H24 (In millions of Euros) 1H23 1H24 2023 vs. 1H23 vs. Dec-23 Non-current financial debt 486 459 407 -79 -52 Non-current lease liabilities 318 347 289 -29 -58 Current financial debt
Slide 48: Capital Management & Financing (II): Gross debt maturity profiles
Capital Management & Financing (II) Gross debt maturity profiles Gross Debt maturity profiles as of 06/30/2024 (excl. IFRS16) 1 In millions of Euros As of year 5 17 In 4 years 1 In 3 years 2 In 2 years 394 In 1 year 20 Non syndicated debt and other Syndicated debt Bonds 48 (1) Including reclassifica
Slide 49: FCF reconciliation with annual accounts version
FCF reconciliation between the version detailed in this presentation and the version contained in the annual accounts Statement of Cash Flows Financial IAS 29 Financial debt 1H24 Cash presented in Lease Payments Sale of assets income and SUBTOTAL Adjustment variation Flow graph semi-annual expenses
Slide 50: Capital Management & Financing (III): Balance sheet
Capital Management & Financing (III) Balance sheet Balance sheet including reclassification of discontinued operations (In millions of Euros) 06/30/2023 06/30/2024 Var. % Var. Non-current assets 1,477 1,508 30 2.0% Stocks 315 294 (21) (6.8%) Trade and other receivables 161 149 (12) (7.7%) Other curr
Slide 51: Sales area evolution
Sales area evolution Grupo Dia sales area in ‘000m² 1H23 1H24 Var. Spain1 1,193 937 (21.5%) Portugal 276 280 1.4% Brazil 279 102 (63.5%) Argentina 186 - (100.0%) Grupo Dia Total 1,934 1,318 (31.8%) 51 (1) Including Clarel.
Slide 52: Capex
Capex1 (in millions of Euros) 1H22 1H23 1H24 1H24 vs. 1H23 Spain continued (115.7) (83.9) (38.9) 45.0 Argentina (40.5) (42.8) (10.1) 32.7 Group continued Total (156.1) (126.6) (48.9) 77.7 Spain discontinued (1.3) (2.1) (0.4) 1.7 Portugal (6.3) (2.2) (1.7) 0.4 Brazil (4.5) (8.7) (1.2) 7.4 Group Total
Slide 53: Grupo Dia on the stock exchange
Grupo Dia on the stock exchange Stock price (euros) 1H23 1H24 During the first half of 2024, Grupo Dia's stock performed favorably, reaching a peak of €0.0137 and closing the semester at a price of €0.0123. Since the beginning of the year, the stock price has Beginning 0.0127 0.0118 increased by 4.2
Slide 54: Exchange rate variations
Exchange rate variations Exchange rate variations 1H23 1H24 % Var. Euro / Argentine Peso (annual closing rate) 280.4168 978.0939 249% Euro / Brazilian Real (average rate for the period) 5.48495 5.44633 -0.7% 54
Slide 55: Shareholding Structure and Board of Directors
Shareholding Structure and Board of Directors 0.041% 22.2% Board of directors Members Position Mr. Benjamin Babcock Chairman – External Proprietary Director Mr. Alberto Gavazzi Member – External Proprietary Director Shareholding structure Mr. Sergio Antonio Ferreira Dias Member – Other External Dire
Slide 56: Glossary
Glossary • Gross Profit: is the Profit resulting mainly from Net Sales and Other Income less, (i) Consumption of goods and other consumables; (ii) impairment of trade receivables; and (iii) personnel expenses, other operating expenses and leases related to the logistics activity, as detailed in the
Slide 57: Glossary
Glossary • Gross sales under banner (GSUB): is the total value of the turnover obtained in the stores, including all indirect taxes (cash receipt value) and in all the Company's stores, both company-owned and franchised. In the case of Argentina, gross sales under banner are adjusted using internal