Distribuidora Internacional de Alimentación, S.A.

Dia Spain gross sales increased 8.6% to EUR 5.5 billion, net sales rose 8.2% to EUR 4.6 billion, adjusted EBITDA rose 18% to EUR 313 million, and adjusted EBITDA margin improved 54 bps to 6.8%. Spain net income tripled to EUR 166 million, including EUR 52 million from deferred tax asset recognition; excluding that tax effect, net income would have been EUR 114 million. Spain free cash flow was EUR 140 million, with net debt down EUR 79 million to EUR 251 million and adjusted net debt-to-EBITDA at 0.8. Group continuing-operations gross sales rose 3% to EUR 7.1 billion, adjusted EBITDA increased 8% to EUR 316 million, adjusted EBITDA margin improved 30 bps to 5.4%, and net income more than doubled to EUR 115 million; group free cash flow was EUR 143 million and net debt fell to EUR 190 million. In Argentina, gross sales fell 15% to EUR 1.5 billion, net sales fell 15% to EUR 1.2 billion, and the business reported a 40% peso depreciation impact plus EUR 104 million of negative noncash IAS 29 impact. Argentina achieved positive adjusted EBITDA and free cash flow of EUR 4 million and EUR 3 million respectively, with H2 free cash flow of EUR 12 million and H2 adjusted EBITDA margin at 1.3%. For 2026, management expects Spain to keep outperforming the 4% to 6% total sales growth guidance range, with like-for-like growth of 3% to 4%, inflation of 1% to 2%, around 3% contribution from the expansion plan, further margin improvement, and net CapEx in Spain of over EUR 210 million. The company expects group net debt to remain roughly flat in 2026 as higher CapEx offsets cash generation. In Argentina, management expects gradual sales recovery, improved margins, and positive working capital inflow, while keeping the business self-funded.

Martin Tolcachir framed 2025 as a pivot from turnaround to sustained profitable growth, saying Dia is now accelerating its strategic plan rather than merely catching up. He emphasized that Spain is the engine of the group, with strong volume-led growth, a widening customer base, and a proximity model that is gaining market share and customer loyalty. His tone was confident but disciplined: he repeatedly stressed that M&A in Spain would be only supplementary and that execution of the organic plan remains the priority.

Guillaume Gras highlighted the financial quality of the year: Spain delivered EUR 313 million of adjusted EBITDA, EUR 166 million of net income, and EUR 140 million of free cash flow, while group free cash flow reached EUR 143 million. He pointed to balance sheet strength, including Spain net debt of EUR 251 million, group net debt of EUR 190 million, adjusted net debt-to-EBITDA of 0.8, and no significant debt repayments until 2029. He also detailed tax asset activation, noting EUR 52 million activated in the second half and EUR 165 million still pending in Spain, and said 2026 CapEx in Spain should be about EUR 50 million above 2025, or over EUR 210 million. On refinancing, he said the lockup expires at year-end and that the company expects a relevant reduction in borrowing costs from a potential 2027 refinancing, but it is too early to quantify.

Analysts focused on whether 2026 guidance looked conservative given the strong 2025 run rate, how much further store expansion and margin improvement could go, and whether the company might refinance debt or revisit capital returns. Management said Spain should still outperform the 4% to 6% sales growth range in 2026, with like-for-like growth of 3% to 4%, inflation of 1% to 2%, and around 3% expansion contribution; it also said 2026 margins should improve further, though at a more normal pace than 2025. On debt, management said refinancing is more likely from 2027 onward due to penalties until end-2026, and that a better cost of debt could eventually reopen shareholder remuneration flexibility. On Argentina, management rejected a sale for now, arguing the business has a strong Buenos Aires position and should benefit from the expected macro recovery and gradual normalization of consumption.