UPDATE 1-Spanish grocer DIA's Q3 sales steady as Spain growth offsets Argentina decline
Dow Jones Industrial Average DJI | 0.00 | |
S&P 500 index SPX | 0.00 | |
NASDAQ IXIC | 0.00 |
Adds detail from paragraph 2 onwards
Oct 30 (Reuters) - Spanish discount grocer DIA DIDA.MC said on Thursday that its third-quarter comparable gross sales were steady at 1.78 billion euros ($2.08 billion), with growth in its home market offsetting a decline in consumption in Argentina.
The figures were in line with last year's, reflecting the company's efforts to rebuild profitability and expand in its home market despite global challenges and currency depreciation in Argentina weighing on its overall performance.
DIA's Spanish division continued to be the main growth driver for the group, with gross sales rising 8.2% to 1.45 billion euros from 1.34 billion euros a year ago.
However, the Argentina unit dragged on the company's results, as gross sales dropped 23.7% hampered by exchange rate fluctuations and the depreciation of the Argentine peso.
The supermarket chain said in a statement it had closed 28 "unprofitable" stores in Argentina in the first nine months of the year and planned to open 30 more stores in Spain within the next quarter.
Over the past three years, the company has pursued a strategy of selling assets to reduce its debt, including the sale of Clarel and its subsidiaries in Portugal and Brazil.
In July, the food retailer recorded a half-year profit for the first time since 2017.
So far this year, DIA shares have gained around 90%.
($1 = 0.8575 euros)
(Reporting by Mireia Merino; Editing by Matt Scuffham and Philippa Fletcher)
((Mireia.Merino@thomsonreuters.com; Reuters Messaging: mireia.merino.thomsonreuters.com@reuters.net))
