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1. Company Snapshot

1.a. Company Description

Distribuidora Internacional de Alimentación, S.A. engages in the retail sale of food products in Spain, Portugal, Brazil, and Argentina.Its stores offer food and household, and personal hygiene products.The company operated a network of 6,169 owned stores and 2,682 franchised stores under the names of DIA Market, DIA Maxi, La Plaza de DIA, Clarel, Minipreço, and DIA&go.


The company was incorporated in 1966 and is headquartered in Madrid, Spain.

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1.b. Last Insights on DIA

Distribuidora Internacional de Alimentación's recent positive drivers include significant profit growth, debt refinancing, and robust online sales expansion. The company's Q4 2024 earnings call highlighted these strengths, despite challenges in Argentina. The debt refinancing is expected to improve the company's financial flexibility, while the online sales growth demonstrates its ability to adapt to changing consumer behavior. Additionally, the profit growth indicates the company's operational efficiency and ability to navigate market challenges.

1.c. Company Highlights

2. Dia's 2025 Results Show Robust and Profitable Growth

Dia's financial performance in 2025 was impressive, with consolidated gross sales increasing by 3% to EUR 7.1 billion and adjusted EBITDA rising by 8% to EUR 316 million. The company's net income from continuing operations more than doubled to EUR 115 million, and its EPS came out at EUR 0.2543, significantly beating estimates of EUR 0.03. The strong financial performance was driven by Dia Spain's total sales, which reached EUR 5.5 billion, up 8.6% year-over-year, driven by 7.4% like-for-like growth and the opening of 94 new proximity stores.

Publication Date: Mar -01

📋 Highlights
  • Spain Sales Growth:: Dia Spain achieved EUR 5.5 billion in sales (+8.6% YoY), driven by 7.4% like-for-like growth and 94 new proximity stores.
  • Margin Improvement:: Adjusted EBITDA margin rose 54 bps to 6.8%, with net profits tripling to EUR 166 million in Spain.
  • Argentina Stabilization:: 2% like-for-like sales growth in H2 2025 and EUR 12 million free cash flow, signaling recovery amid macroeconomic challenges.
  • Free Cash Flow & Debt Reduction:: Consolidated free cash flow of EUR 140 million reduced net debt by 24% to EUR 251 million, with EUR 165 million in deferred tax assets pending activation.
  • Store Expansion Plan:: Aiming for 300 new proximity stores by 2029, with 100+ net openings in 2026, supported by EUR 210 million in capex.

Segmental Performance

Dia Spain's adjusted EBITDA margin increased by 54 basis points to 6.8%, and net profits tripled to EUR 166 million. In Argentina, Dia stabilized its operations, achieving 2% like-for-like sales volume growth in the second half of the year and generating EUR 12 million in free cash flow. The company's market share in Spain increased by 12 basis points, and it consolidated its position as the fourth-largest national player and leader in the proximity segment.

Outlook and Guidance

For 2026, Dia expects to maintain its market leadership in like-for-like growth, with a projected total sales growth outpacing the 4% to 6% guidance range. The company aims to accelerate its store expansion plan, with over 100 net store openings in 2026, up from 54 in 2025. Dia's adjusted EBITDA margin is expected to continue improving, driven by operational leverage and cost discipline.

Valuation and Metrics

Dia's valuation metrics indicate a relatively attractive position, with a P/E Ratio of 54.75, EV/EBITDA of 6.39, and Free Cash Flow Yield of 22.96%. The company's ROIC is 9.35%, indicating a decent return on invested capital. However, the ROE is -209.63%, which is a concern. The Net Debt / EBITDA ratio is 1.38, indicating a manageable debt position.

Growth Prospects

Analysts estimate Dia's revenue growth at 5.4% for the next year. The company's strong position in Argentina, competitive operational and supply chain solution, and value proposition combining own brand, fresh products, and national brands position it well for a gradual recovery in consumption from 2026 onward.

3. NewsRoom

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Distribuidora Internacional De Alimentacion SA (FRA:DI60) Full Year 2025 Earnings Call ...

01:01

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How DIA’s 95% Rally in 2024 Shapes Its Outlook After Recent Market Gains

Sep -15

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Distribuidora Internacional De Alimentacion SA (XMAD:DIA) (Q4 2024) Earnings Call Highlights: ...

Mar -01

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Distribuidora Internacional De Alimentacion SA (XMAD:DIA) (Q2 2024) Earnings Call Highlights: ...

Oct -09

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.41%)

6. Segments

Own Stores

Expected Growth: 4.5%

Own Stores' 4.5% growth driven by strategic store renovations, enhanced customer experience, and effective supply chain management. Additionally, investments in digital transformation, loyalty programs, and targeted marketing campaigns have contributed to increased foot traffic and average ticket size.

Franchisees

Expected Growth: 4.2%

Franchisees from Distribuidora Internacional de Alimentación, S.A. achieved 4.2% growth driven by strategic store expansions, effective supply chain management, and strong brand recognition. Additionally, investments in digital transformation, loyalty programs, and employee training contributed to increased sales and customer retention.

On Line

Expected Growth: 6.0%

Distribuidora Internacional de Alimentación's online segment growth of 6.0% is driven by increasing online grocery shopping adoption, strategic partnerships with food delivery companies, and investments in digital marketing and logistics infrastructure, enabling efficient last-mile delivery and enhancing customer experience.

Other

Expected Growth: 3.8%

Distribuidora Internacional de Alimentación's 3.8% growth is driven by increasing demand for private label products, expansion into new markets, and strategic partnerships with suppliers. Additionally, the company's focus on digital transformation, cost savings initiatives, and efficient supply chain management have contributed to its growth.

7. Detailed Products

Fresh Produce

Distribuidora Internacional de Alimentación, S.A. offers a wide range of fresh fruits and vegetables sourced from local farmers and international suppliers.

Meat and Poultry

The company provides a variety of meat and poultry products, including beef, pork, chicken, and seafood, sourced from trusted suppliers.

Dairy and Eggs

Distribuidora Internacional de Alimentación, S.A. offers a range of dairy products, including milk, cheese, and eggs, from local and international suppliers.

Bakery and Pastry

The company provides a wide range of bakery and pastry products, including bread, pastries, and cakes, from local and international suppliers.

Pantry and Dry Goods

Distribuidora Internacional de Alimentación, S.A. offers a variety of pantry and dry goods, including rice, pasta, and canned goods, from local and international suppliers.

Beverages

The company provides a range of beverages, including soft drinks, juices, and bottled water, from local and international suppliers.

Food Service

Distribuidora Internacional de Alimentación, S.A. offers a range of food service products, including prepared meals, snacks, and condiments, from local and international suppliers.

8. Distribuidora Internacional de Alimentación, S.A.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Distribuidora Internacional de Alimentación, S.A. operates in a market with a moderate threat of substitutes, as customers have some alternatives to traditional supermarkets, such as online grocery shopping or specialty food stores.

Bargaining Power Of Customers

Distribuidora Internacional de Alimentación, S.A. faces a high bargaining power of customers, as they have many options to choose from and can easily switch to competitors if they are not satisfied with prices or services.

Bargaining Power Of Suppliers

Distribuidora Internacional de Alimentación, S.A. has a low bargaining power of suppliers, as it is a large company with significant purchasing power, allowing it to negotiate better prices and terms with its suppliers.

Threat Of New Entrants

Distribuidora Internacional de Alimentación, S.A. operates in a market with a low threat of new entrants, as it requires significant capital investment and regulatory compliance to enter the market.

Intensity Of Rivalry

Distribuidora Internacional de Alimentación, S.A. operates in a highly competitive market, with many established players competing for market share, which leads to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 111.32%
Debt Cost 5.79%
Equity Weight -11.32%
Equity Cost 5.79%
WACC 5.79%
Leverage -983.68%

11. Quality Control: Distribuidora Internacional de Alimentación, S.A. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Europris

A-Score: 6.1/10

Value: 4.6

Growth: 6.8

Quality: 5.2

Yield: 5.6

Momentum: 8.0

Volatility: 6.7

1-Year Total Return ->

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Stock-Card
Anora

A-Score: 6.0/10

Value: 7.9

Growth: 1.9

Quality: 3.7

Yield: 8.8

Momentum: 7.5

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
KWS SAAT

A-Score: 5.7/10

Value: 6.3

Growth: 3.9

Quality: 7.3

Yield: 2.5

Momentum: 6.5

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Viva Wine

A-Score: 5.1/10

Value: 5.8

Growth: 4.0

Quality: 4.6

Yield: 5.6

Momentum: 2.0

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
DIA

A-Score: 4.9/10

Value: 7.4

Growth: 3.7

Quality: 3.8

Yield: 0.0

Momentum: 10.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Tokmanni

A-Score: 4.7/10

Value: 7.6

Growth: 4.8

Quality: 3.2

Yield: 9.4

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

40.0$

Current Price

40$

Potential

-0.00%

Expected Cash-Flows