DIA is the Mercadona of the stock market: double benefit of competitors
Between 2010 and 2013 expected to increase its gross profit by 14% compared to 7% of industry average. In two years estimated increase in number of establishments from 6375-8000.
On November 5 the company served four months of its coming-out stock market and is a value that conveys good feelings.
On the one hand, the company is portrayed as a defensive, since opening its shares have fallen 5.5%, compared to 20.5% in the same period gives its selective principal, IGBM. The analysts frown, and have improved its rating, moving from a buy and its price target from 3.8 to 3.93 euros.
Benefit Vs Debt
DIA is implementing a business plan with an expected cumulative growth of its gross operating profit (EBITDA) between 2010 and 2013 from 13%, estimates the company itself and a 13.77%, according to the average bank following this investment-value so that if in 2010 its EBITDA was 477 million euros in 2013 it will reach 617 million, compared to 7.30 on average expect growth in the distribution sector.
His debt is its Achilles heel, as in 2009 closed with a net cash position amounting to EUR 7.2 million but its ambitious restructuring plan has caused DIA debt incurred, so that in 2011 their loads financing are expected to amount to 589 million euros. The question is, what is the secret of DIA? To answer we must look at their business model and strategic plan.
Business Model
His way of business is based on three pillars. A wide range of products with its own image, whose value has become more attractive in the current context of economic stagnation and decline in consumer income. Sales of private label products account for approximately half of the total in Portugal and Spain, while in emerging countries ranges from 10% in China and 35% in Brazil.
The restructuring of its business model is one of its pillars. DIA operates its business through two models. One is known as Self Management, which is its traditional pattern of activity, where the ownership and operation of the establishment lies with the company. This format, which applies in more than 67% of its stores, used in areas with strong sales potential and is flexible enough to change the business and personnel management.
His other form of business is the franchise, which has strengthened in recent times and it is expected that by 2013 reaches 40% of all establishments, from the current 32.5%. Finally, the company has a large operational efficiency in logistics, to be flexible enough torque to the needs of its customers with two types of formats: Market and Maxi DIA DIA.
This has led to a company that last year, according to the company, turnover of 9,600 million euros thanks to its activity in 6375 has spread establishments in Spain, Portugal, France, Argentina, Brazil, Turkey and China.
Future Plans
For the next year’s DIA aims to consolidate its presence in emerging, high potential for growth, thanks to a significant investment, boosting hopes to finance the cash flows obtained in mature markets of Spain and Portugal.
Its international expansion is based on the number of establishments increased to 8,000 in 2013. In addition, DIA is implementing a plan to transform his antique shops in modern’s shops adequate for the new necessities of consumers.
Full article:
Comentarios desactivados en DIA is the Mercadona of the stock market: double benefit of competitors /
27 Nov 2011
por
Ruben Pardo Hernangomez
MERME /
.png)
].gif)
.png){kind=logo}
].png)
].png)
].png)
].png)
.png){kind=logo}
].png)
.png){kind=logo}
