Russian oligarch runs thousands of supermarkets in Spain
The Spanish supermarket chain DIA is owned by the Russian billionaire and oligarch Mikhail Fridman. Despite recent EU sanctions, the supermarket chain is still unaffected by EU politics against Russian oligarchs and continues its operations in Spain, Argentina, and Brazil under the DIA brand.
Letter One Investment Holdings SA (LIHS), co-founded by Russian billionaire Mikhail Fridman, has a significant stake in the Spanish supermarket chain Dia. However, Dia asserts that it is not directly controlled by Fridman or any individual shareholder.
Despite Fridman’s recent addition to the European Union’s sanctions blacklist due to Russia’s invasion of Ukraine, Dia maintains that it will remain unaffected by these developments.
Born into a Jewish family in the western Ukrainian city of Lviv in 1964, Fridman studied in Moscow then went on to build a vast business empire encompassing everything from oil and gas to banking, telecoms, and distribution. He divides his time between London and Moscow and Forbes estimates his fortune at $15.5 billion.
Although he has cultivated strong ties to Putin’s administration, he has never become part of the president’s inner circle, according to The Times of Israel. Fridman’s recent call for an end to the bloodshed in Ukraine underscores the complexity of his position as a businessman with ties to both Russia and the international community.
Fridman's investment company, LIHS, bought a majority shareholding in DIA in 2019 after a two-year battle and controls 78 percent of the shares according to Olive Press, a Spanish business magazine. LIHS first bought into Dia in 2017, launching a hostile takeover bid two years later.
In 2023, Grupo Dia recorded net losses of US$32 million, which is a reduction of 75.6% compared to the losses in 2021. This result has been negatively affected by the deterioration of assets in Brazil. DIA confirms that the company is evaluating its exit from Brazil due to the negative impact that the Rio business has had on the company’s annual accounts. The company is confident of returning to profits in 2024.
“Spanish grocery retailer Dia’s proximity strategy proved successful in its 2023 fiscal year, with the retailer generating strong results, despite a challenging economic climate,” claims CEO Martín Tolcachir in a press release.
“We fulfilled strategic priorities, simplified our portfolio, and set the stage for future growth under our single banner."
Highlighting the progress in debt reduction Guillaume Gras, Dia’s financial director, added: “The solid performance and debt reduction allow us to look confidently at the upcoming refinancing process.”
Around 62% of stores in Dia’s core markets (Spain, Argentina, and Brazil) are franchised, with the franchisee network accounting for 45% of net sales (up by 6.4% since 2022).
Private labels accounted for 54% of the shopping basket in Spain (up from 52.6% in 2022) and 29% in Argentina, the company informs in a press release.
Sources: Olive Express, The Times of Israel, The Economist, DIA.