Dia reduces sales in Spain and warns of pressure due to rising costs

The rise in costs such as energy, fuel and raw materials hit Dia. The supermarket chain has just given a preview of the results of the first quarter of this 2022, in which Spain, its main market by volume of business and employees, reduces its income until March. The company improves global billing data at group level thanks to the behavior of Brazil and Argentina, mainly. The president of the company, Stephan Ducharmehas warned of the consequences that the war between Ukraine and Russia is having for the group.

“The uncertainty that we are experiencing in geopolitical and macroeconomic terms is being transferred to our activity in the form of a rise in the price of fuel, energy and raw materials that is affecting the entire value chain,” the company explained in a statement relevant to the National Securities Market Commission (CNMV). It must be remembered that supermarket chains are increasingly suffering from this pressure and are being forced to transfer these costs to the products, with price increases, or more imaginative solutions by manufacturers.

The entrance of a Dia supermarket, on September 3, 2021, in Madrid (Spain).  Dia has completed its global recapitalization and refinancing operation after carrying out various actions that have contributed to restoring and strengthening its net worth.  This distances the company from its legal cause of dissolution due to losses, as reported to the National Securities Market Commission (CNMV).  SEPTEMBER 03, 2021;SUPERMARKETS;DAY;RECAPITALIZATION;REFINANCE Eduardo Parra / Europa Press (FILE PHOTO) 9/03/2021

Although the company has been singled out on different occasions for the alleged links of Mikhail Fridmanone of the large shareholders, with the Kremlin, the company has always stated that no Russian businessman who owns its titles controls the company directly or indirectly. On this occasion, Dia wanted to limit himself to launching a message of solidarity: “I want to convey once again our dismay at the invasion of Ukraine and the devastating humanitarian consequences that we are seeing,” said Ducharme.

Dia wanted to clarify before the stock market regulator that the results in Spain and Portugal are due to the transformation of their store model (-4.2% in the first country and -9.2% in the second), since the company continues to reduce the total number of stores to focus on those that are truly profitable. However, in both markets, sales at a constant scope (Like-for-Likein the jargon of the sector) are also reduced.

On the positive side, the supermarket chain highlights that at the group level, total sales did grow and stood at 1,620 million euros (3.1%) despite having 348 fewer stores. Particularly noteworthy is Argentina, where the company rates the performance of its subsidiary as “exceptional” and attributes it, in part, to “an inflation higher than the devaluation of the currency.” Another positive fact that the company rescues is the frequency of visits to its establishments in all its countries.

Board and management changes

Dia has presented results at a hectic time for the company. The board of directors communicated this week the departure of his counselor Basola Valléswho alleged incompatibilities when appointed Senior Vicepresident Strategic Customer Partner (SEMEA) in the group Salesforce. Said position, as he defended before the stock market regulator, excludes the possibility of continuing to hold positions on the boards of directors of other entities.

The rest of the changes have been made in the management committee, as explained by the company in its annual corporate governance report. The departure of Alexander the Greatglobal head of human resources, and Aeneas Pestana, former CEO in Brazil, for next May. Before, on March 31, he did the same Miguel GuineaCEO in Portugal.

Source: LA INFORMACIÓN – Lo último by www.lainformacion.com.

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