The year 2024 has been a resounding success for Grupo Dia, marking a significant milestone in the company’s transformation and simplification journey. By focusing its strategy and resources on two high-growth platforms – Spain and Argentina – the company has not only reinforced its capital structure with long-term financing but also demonstrated exceptional strategic, operational, and financial performance. This achievement is underpinned by a unique omnichannel value proposition that emphasizes proximity and a franchise model that fosters a winning partnership with franchisees.
Throughout 2024, Grupo Dia sustained its positive growth trend, with gross sales under its banner (GSUB) increasing by 159 million euros, representing a 2.4% rise compared to 2023, to reach 6.901 million euros. The robust performance of the Spanish business was instrumental in this evolution, with sales growing by 267 million euros, or 5.5%, to achieve a total GSUB of 5.123 million euros. This constitutes 74% of the company’s total perimeter. Although the Argentine market faced challenges due to a decline in consumer spending and a volatile macroeconomic environment, including currency devaluation, the company’s GSUB in Argentina closed the year at 1.778 million euros.
Grupo Dia’s adjusted EBITDA continued its growth trajectory, recording a 15% increase, or 39 million euros, to reach 292 million euros. The adjusted EBITDA margin, expressed as a percentage of sales, stood at 5%. Notably, Dia Spain’s adjusted EBITDA grew by 72 million euros to 266 million euros, a 37% increase, with a margin expansion of 1.4 percentage points to 6.2%. Meanwhile, Dia Argentina achieved a positive adjusted EBITDA of 26 million euros, driven by cost control and efficiency improvements, resulting in a profitability level of around 2% of net sales. These operational performance enhancements are primarily attributed to improved operational efficiencies and strict financial discipline and cost control.
As of the end of the year, Grupo Dia reported a positive net result from its continued operations of 28 million euros. The solid performance of the Spanish business enabled the company to achieve a positive net result of 59 million euros, albeit 23 million euros lower than the previous year due to the impact of extraordinary tax effects in 2023.
During the year, Grupo Dia further strengthened its financial position, underpinned by a robust cash generation capability. The company’s operating cash flow increased to 203 million euros, a significant improvement of 59 million euros, or 40%, compared to 2023. This was driven by sales growth and a substantial reduction in capital expenditures following two years of investment in its transformation plan. Spain remained the primary contributor to cash generation, accounting for nearly 78% of the total, while Argentina improved its cash flow by 11 million euros, demonstrating the resilience of the business model in a volatile environment.
At the close of the year, Grupo Dia operated a network of 3,343 stores in Spain and Argentina, with 69% of these stores managed by franchisees. The franchise network contributed 46% of the company’s net sales for the year. According to Martín Tolcachir, Grupo Dia’s Global CEO, “The 2024 results confirm the success of our transformation and simplification, solidifying our unique omnichannel value proposition focused on proximity. Spain has been the driver of this growth, while Argentina has shown extraordinary resilience in a challenging year marked by declining consumer spending. We have two platforms with excellent performance and significant growth potential. Proud of our achievements, we will continue to look forward, initiating a new phase of accelerated growth, committed to taking Dia to the next level by creating value for our customers, franchisees, shareholders, and the communities we serve.”
The improvement in Grupo Dia’s financial results, coupled with the sale of the last assets as part of its transformation plan, has enabled the company to deleverage and reduce its debt. As of the end of the year, the company’s net financial debt stood at 241 million euros, representing a decrease of 181 million euros from the previous year, with a leverage ratio of 0.8 times adjusted EBITDA, compared to 2.0 times in 2023 and 2.7 times in 2022.
In December 2024, Grupo Dia closed a refinancing agreement worth 885 million euros, providing the company with an optimal financial structure to accelerate its future growth. This agreement, which reflects the financial community’s confidence in the company, reinforces its capital structure with new five-year financing, offering liquidity and greater flexibility to tackle future growth.
Grupo Dia is also engaged in an initiative to improve the market’s perception of its stock value. To achieve this, the company undertook a share consolidation process aimed at adjusting its value to that of its peers and aligning its valuation with its new financial and operational reality. This operation was announced in late 2024, and the resulting shares, with their new value, were admitted to trading on February 5, 2025.
Guillaume Gras, Grupo Dia’s CFO, noted, “The 2024 results confirm the success of our strategy for profitable and sustainable growth. The progressive improvement in adjusted EBITDA and margin reflects our commitment to operational efficiency. We have optimized all areas of the group, from logistics and procurement to franchisee and supplier management. Thanks to solid cash generation and the successful completion of our transformation plan and financial restructuring, Grupo Dia is well-positioned to further deepen its efficiency and profitability trajectory, with a clear focus on creating sustainable value for our shareholders.”
The company will present its Strategic Plan for the next five years to investors and analysts on March 20, marking its first Capital Markets Day since 2017.
Priorities for 2025 and Beyond
Grupo Dia enters 2025 in a strong position, determined to accelerate growth and enhance business performance. With the ambition of becoming the favorite food store for customers in every neighborhood and online, the company will focus its efforts on:
- Spain: Continuing organic growth and initiating a store expansion plan. Evaluating strategic alternatives, both organic and inorganic, that could support Dia’s development and long-term value creation. Furthermore, with the goal of winning and captivating an increasing number of customers, the company will continue to bet on a unique value proposition in proximity, offering freedom of choice among recognized national and international brands, Dia products of maximum quality, a selection of fresh, locally sourced products, and daily efforts to provide an extraordinary shopping experience.
- Argentina: Dia is committed to continuing to support households while protecting the business’s profitability and cash flow, backed by the strength of the brand and a unique value proposition in proximity.
- Consolidating the improvement in financial results.
- Increasing the visibility and improving the perception of Dia’s stock to reflect the company’s good results.
These priorities underscore Grupo Dia’s commitment to creating value for its stakeholders while navigating the complexities of the retail landscape in Spain and Argentina. As the company embarks on its next phase of growth, its focus on operational efficiency, customer satisfaction, and strategic expansion is poised to drive long-term success and profitability.