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DIA Will Lay Off 2,100 Employees After Losses of 352 Million Euros

The distribution group DIA recorded losses of 352.6 million euros in the year 2018, in contrast to the 101 million euros of profit a year earlier, and will initiate a process of collective dismissal in Spain that will affect a maximum of 2,100 people.

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The distribution group DIA recorded losses of 352.6 million euros in the year 2018, in contrast to the 101 million euros of profit a year earlier, and will initiate a process of collective dismissal in Spain that will affect a maximum of 2,100 people.

This has been reported this Friday to the National Securities Market Commission (CNMV) supermarket chain, whose data reflect the difficult situation crossed by the firm during the past year, which worsened in the last quarter after worsening its forecasts for the end of the year and finding errors in their accounts for 2017, which led to their collapse in the stock market.

The income statement for 2018 reflects a fall in net turnover of 11.3% to 7,288.8 million euros, while its adjusted EBITDA decreased by 35% to 337.9 million euros.

Of the fall in sales, most of it occurred in Spain, its most important market, with a reduction of 161 million euros with respect to 2017, above the close to 35 million euros of decrease registered in Portugal. In addition, there was also a negative impact on exchange rates in Argentina and Brazil.

Global gross sales under banner (result of the sum of the turnover in own supermarkets and franchisees without discounting VAT and other indirect taxes) ended the year at 9,390 million euros, 14.9% below the figure of 2017 .

DIA, in addition, ended the year in a situation of ’cause of dissolution’ – as it had already announced – with a negative net worth of 166 million euros, compared to the positive 257.3 million a year earlier.

Net debt, meanwhile, has shot up more than 50%, from 945 to 1,451 million euros.

From the distribution group have also advanced that they will begin in Spain a process of collective dismissal that will affect ‘a maximum of 2,100 contracts of work’ – its staff in the country is around 26,000 employees, as reported by the company within the framework of your annual results presentation.

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