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Shares in Spanish retailer DIA dive after profit warning
October 26, 2017 / 8:32 AM / 2 months ago

Shares in Spanish retailer DIA dive after profit warning

MADRID, Oct 26 (Reuters) - Shares in Spanish retailer DIA slumped to a five-year low after it issued a profit warning on Thursday hit by lower sales and price competition.

The company said it expected adjusted core profit to fall by single digits this year, after previously forecasting growth.

Growth in gross own-brand sales is now seen in low-single-digits, down from the mid-single-digit growth initially expected.

The announcement echoed a similar move from French rival Carrefour in August.

DIA shares were down 5.3 percent to 4.09 euros at 0750 GMT, their lowest price since September 2012.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) was 431.6 million euros ($509.89 million)in the January-October period, flat from last year.

Fewer new store openings than expected and slower food price growth prompted the revision, the company said.

“We’ve seen significant changes in the competitive environment in all the markets where we operate... as a consequence, adjusted EBITDA for the year is expected to fall by around single simple digits,” Chief Executive Officer Ricardo Curras said in a statement.

Curras said he expected like-for-like sales to grow in Spain and Portugal in the fourth quarter, in line with a trend already observed in October.

$1 = 0.8465 euros Reporting by Julien Toyer; editing by Jason Neely

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