The supermarket chain DIA and the unions representing their staff have just signed the new collective bargaining agreement for the period January 1, 2019 to December 31, 2021. This includes salary increases for the company’s 16,000 employees.Under the terms of the new agreement, modules A and B have been combined into one. This will have a salary of 13,700 euros for 2020 and 14,000 euros for 2021.
Bankinter | DIA´s Q119 results show a very negative evolution in its business. The following stand out: income 1.6646 Bn € (-7.2%), EBITDA 12.4 M€ (-77.7%), EBIT -119.9 M€ (vs -6.1 M€ in Q118) and losses of -144.4 M€ (vs -16.2 M€ in Q118). On 26 April DIA had already published an advance of the preliminary results for Q119. It anticipated sales of 1.615/1.715 M€ vs 1.793 M€, an EBIT of -115/-125 M€ and net annual profits of -140/-150 M€.
Renta4 | LetterOne has communicated to the regulator (CNMV) that it will further extend the acceptance period for its bid to 6 May inclusive (compared to 30 April before, and the 23 April originally established) after the company made public and advance of its Q119 results last week which continue to show a significant operational deterioration.
Ana Fuentes | It was seen coming: with low participation in the General Assembly of Shareholders, the restructuring plan chosen for the company was that proposed by LetterOne, controlled by Mikhail Fridman and backed by Goldman Sachs, which owns 29.01% of the Group.
The supermarket chain DIA has announced the new configuration of its Executive Committee. This will include a Director of Transformation, will seek to redesign the business model, simplifying the processes and increasing efficiency. However, there remains uncertainty about the success of this repositioning because of the very aggressive competitive environment.
The Board of the supermarket chain DIA has issued a profit warning because of the fall in the volume of sales and the increase in operating costs, which has caused it to revise its estimation of Ebitda for 2018 to between 350-400 million euros. This reduction of the forecast for 2018 does not include the potential impact of hyperinflation in Argentina, a country which accounts for 15% of sales.
Carrefour has announced a transformation plan to restructure its business over the next five years and turn around the current weak trend in its results.
MADRID | By Jaime Santisteban | Spanish Ibex 35 welcomes the week over 10,500 points. “Ukraine showdown and macro numbers will hatch investors’ attention,” Link experts point out. Bankia analysts “see the positive influence of Chinese government statement about share, bond and raw material markets supporting measures. Markets also await remaining corporate results and European countries inflation.” Last week’s Mr Draghi’s words were crucial to stop euro appreciation- the currency is likely to keep going down.
MADRID | By Jaime Santisteban | Repsol could sell its 30% participation in Gas Natural before the summer. 20 % of it would go for sovereign wealth funds (yet unidentified) and 10 % through quick placement of shares. RENTA 4 believes the company will monetize the operation if other worthy investment opportunities are identified. SABADELL finds the move logical within negotiations with La Caixa (which controlls 1/3 of Repsol’s capital). ACF highlights that Gas Natural shares are turning out very profitable in dividend for Repsol (4.5%), making this sale not that attractive for that firm.
Spanish company Dia sells its operation in Turkey for 136.5 million euros to be paid in cash.