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the Day recorded a net loss of 418,67 million euros in the first half of the year, which means multiply by fourteen the afflictions of 29.4 million euros obtained in the same period of the previous year, that the company attributes to “negative factors and extraordinary”.
So, the supermarket chain has blamed this result the “strong” negative impact on the results related to the “significant” drop in sales and also by the effects of exceptional recorded during the period by the different measures taken to establish a basis for “appropriate” and give a change of direction in the long term to the group. This will result, as explained by the firm, in effect “positive” visible on sales and profitability in the medium and long term.
Between January and June, the net sales amounted to 3,400 million euros, what implies a decrease of 7%, while gross operating income (Ebitda) adjusted stood at 33.2 million euros, a 83,9% less.
Day has highlighted in a press release as negative factors in the period as the crop template, the lack of stock, the closing of stores and the transfer of local franchisees to own, among others.
The chain has been advanced that it has initiated a process of collective dismissal to its subsidiary Group The Tree, which affects the closure of the shops Max Discount and may include a maximum of 210 employees. As has been highlighted, this decision has been made “in the framework of the already announced discontinuation of the business ‘cash & carry'”, a segment from January to June has recorded an “impairment of assets” of € 14.8 million, based on the estimates of sale or liquidation planned for that period.
In the future, the company controlled by LetterOne, a company of Russian investor Mikhail Fridman , with almost 70% of the supermarket chain , intends to continue to support and promote this recovery of the initial sales through a variety of initiatives in different areas (commercial, operations, logistics) with the common goal to boost the flow of customers to the stores, improve sales and productivity.
The chief executive officer of Grupo Dia, Karl-Heinz Holland, stated that “the new direction of Day is fully aware of the demanding situation; the team has the knowledge and the experience to put the business back on track and continue to take the necessary measures to place to-Day in a position of strength and achieve the long-term success. Every day there will be improvements and changes, which will take some time.”
These are the first results presented by Day since it became effective the takeover bid made on the company by LetterOne, the background property of the entrepreneurs Russian Mikhail Fridman, who went from having a 29% of the stock at the current 69.7 percent , and the corresponding change in the Board of Directors.
In the first quarter, DIA obtained a loss of 144 million euros, and net sales of 1.664,6 million euros, 7.2% less compared to 1.793 million in the first quarter of 2018. These results confirmed the delicate financial situation that was going through then, the company, when it was still pending the closing of the opa.
