DIA touts progress despite weak H1 | Progresiv
The struggling DIA group has said it is beginning to see improved results, even as it posted a drop in profits and sales for its fiscal first half. 
For the six months to end-June, the discounter saw net sales decline by 7% to 3.44 billion euros, although this was down just 0.5% on a constant-currency basis. However, adjusted EBITDA slumped by 83.9% to 33.2 million euros, while it swung to an operating loss of 315 million euros (from a profit of 15.1 million euros last year), even as it net loss widened to 418.7 million euros (from a loss of 29.6 million euros last year).
The group attributed those results to its ongoing restructuring process, which included the closure of hundreds of unprofitable stores, the de-franchising of hundreds of other outlets, the ending of non-core activities, and job cuts.
However, it said it is beginning to see gains from those moves, as well as efforts to improve its inventory levels, which resulted in overall like-for-like sales figures improving in July and August. It also claimed it now has a “stable cashflow” and a “clear capital structure”.
DIA said it aims to build on this momentum, with CEO Karl-Heinz Holland noting: “The new management team is fully aware of DIA’s demanding situation; the team has the knowledge and the expertise to put the business back on track and will continue to take the much needed steps to place DIA in a position of strength for long term success.” (www.kamcity.com)
