Spanish food retailer DIA's H1 sales help narrow loss (updated)

Distribuidora Internacional de Alimentacion SA

03/08/2023 08:10

(Adds CEO quote in paragraph 3, detail on Clarel and Portugal
business)
       Aug 3 (Reuters) - Spanish food retail group DIA
 DIDA.MC  said on Thursday it narrowed its net loss by 36% to 67
million euros ($73.3 million) in the first half of the year
after seeing an increase in sales. 
    Its net sales over the period rose 4% to 3.6 billion euros
in an environment marked by high food inflation.
    "Inflation, which started the year at high levels, is
gradually recovering to pre-Ukraine war and pre-energy crisis
levels, but it is still putting pressure on the value chain,"
Chief Executive Martin Tolcachir said in a statement. 
    Since last year, food retailers have faced soaring raw
material costs, which they have tried to offset with higher
prices on their products amid fierce competition within the
sector.  
    The retailer also said on Thursday it would leave the
Portuguese market between the end of 2023 and the beginning of
2024 by selling its almost 500 supermarkets in the country to
Auchan Portugal for 155 million euros.
    On Tuesday, the Spanish supermarket chain said it was
cancelling a deal to sell its perfume store chain Clarel to C2
Private Capital for around 60 million euros.
     DIA said the conditions of the agreement had not been
fulfilled, which C2 denied in a separate statement.
    The deal was announced at the end of 2022 as part of DIA's
strategic plan to revamp its network of proximity stores.

($1 = 0.9142 euros)

 (Reporting by Matteo Allievi and Jakub Olesiuk; Editing by
David Latona and Christina Fincher)
 ((matteo.allievi@thomsonreuters.com;))