Executive Summary

• DIA reported a 1Q16 revenue decline of 5.0%, to €2.0 billion, which was below the consensus estimate of €2.1 billion. Adjusted EBITDA was down 1.2%, to €117.0 million, just below consensus of €117.8 million. Adjusted operating profit was down 7.9%, to €62.3 million, below consensus of €63.3 million.
• Revenue and profitability were hit by unfavorable currency effects, due to the depreciation of the Argentine peso and the Brazilian real. The company’s progress with integrating its recently acquired Eroski and El Arbor assets contributed to a marginal revenue increase in Iberia.
• In FY16, DIA expects revenue and adjusted EBITDA to grow, in constant-currency terms.