Distribuidora Internacional de Alimentación, SA and Subsidiaries Consolidated Annual Accounts ...

98 Pages·2014·1.23 MB·English

by  Benjamin Harriague

Distribuidora Internacional de
Alimentación, S.A. and
Subsidiaries

Consolidated Annual Accounts
’
and Consolidated Directors Report
31 December 2013

(With Auditors’ Report Thereon)

(Free translation from the original in Spanish. In the event of discrepancy, the
Spanish-language version prevails.)
Auditors’ report on the Consolidated Annual Accounts
(Translation from the original in Spanish. In the event of discrepancy, the original Spanish-language
version prevails.)

To the Shareholders of
Distribuidora Internacional de Alimentación, S.A.

We have audited the consolidated annual accounts of Distribuidora Internacional de Alimentación,
S.A. (the “Company”) and subsidiaries (the “Group”), which comprise the consolidated balance
sheet at 31 December 2013, the consolidated income statement, the consolidated statement of
comprehensive income, the consolidated statement of changes in equity, the consolidated statement
of cash flows for the year then ended and the notes thereto. As specified in note 2 to the
accompanying consolidated annual accounts, the Company’s directors are responsible for the
preparation of the consolidated annual accounts of the Group in accordance with International
Financial Reporting Standards as adopted by the European Union, and other provisions of the
financial information reporting framework applicable to the Group. Our responsibility is to express
an opinion on the consolidated annual accounts taken as a whole, based on our audit, which was
conducted in accordance with prevailing legislation regulating the audit of accounts in Spain, which
requires examining, on a test basis, evidence supporting the amounts and disclosures in the
consolidated annual accounts and evaluating whether their overall presentation, the accounting
principles and criteria used and the accounting estimates made comply with the applicable
legislation governing financial information.
In our opinion, the accompanying consolidated annual accounts for 2013 present fairly, in all
material respects, the consolidated equity and consolidated financial position of Distribuidora
Internacional de Alimentación, S.A. and subsidiaries at 31 December 2013 and the consolidated
results of their operations and consolidated cash flows for the year then ended, in accordance with
International Financial Reporting Standards as adopted by the European Union, and other provisions
of the applicable financial information reporting framework.
The accompanying consolidated directors’ report for 2013 contains such explanations as the
Directors of Distribuidora Internacional de Alimentación, S.A. consider relevant to the situation of
the Group, the evolution of its business and other matters, and is not an integral part of the
consolidated annual accounts. We have verified that the accounting information contained therein is
consistent with that disclosed in the consolidated annual accounts for 2013. Our work as auditors is
limited to the verification of the consolidated directors’ report within the scope described in this
paragraph and does not include a review of information other than that obtained from the accounting
records of Distribuidora Internacional de Alimentación, S.A. and subsidiaries.
KPMG Auditores, S.L.
(Signed on the original in Spanish)
Carlos Peregrina García
19 February 2014
DIA GROUP CONSOLIDATED ANNUAL ACCOUNTS
AT 31 DECEMBER 2013
I Consolidated Statements of Financial Position
II Consolidated Income Statements
III Consolidated Statements of Comprehensive Income
IV Consolidated Statements of Changes in Equity
V Consolidated Statements of Cash Flows
VI Notes to the Consolidated Annual Accounts
1 Nature, Activities and Composition of the Group
2 Basis of Presentation
2.1. Basis of preparation of the consolidated annual accounts
2.2. Comparative information
2.3. Functional and presentation currency
2.4. Relevant accounting estimates, assumptions and judgements used when applying accounting principles
a. Relevant accounting estimates and assumptions
b. Changes in accounting estimates
2.5. First-time application of accounting standards
2.6. Standards and interpretations issued and not applied
2.7. Basis of consolidation
3 Significant Accounting Policies
a. Business combinations and goodwill
b. Investments in associates
c. Non-controlling interests
d. Translation of foreign operations
e. Foreign currency transactions, balances and cash flows
f. Recognition of income and expenses
g. Intangible assets
h. Property, plant and equipment
i. Leases
j. Non-current assets held for sale and discontinued operations
k. Impairment of non-financial assets
l. Advertising and catalogue expenses
m. Financial instruments – assets
n. Inventories
o. Cash and cash equivalents
p. Financial liabilities
q. Parent own shares
r. Distributions to shareholders
s. Employee benefits
t. Other provisions
u. Share-based payments for goods and services
v. Grants, donations and bequests
w. Income taxes
x. Segment reporting
y. Classification of assets and liabilities as current and non-current
z. Environmental issues
aa. Related party transactions
ab. Interest
4 Business Combinations
5 Information on Operating Segments
6 Property, Plant and Equipment
7 Intangible Assets
8 Operating Leases
9 Financial Assets
10 Derivative Financial Instruments and Hedges
11 Other Equity-Accounted Investments
12 Other Assets
13 Inventories
14 Cash and Cash Equivalents
15 Disposal Groups of Assets Held for Sale and Discontinued Operations
16 Equity
17 Financial Liabilities
18 Provisions
19 Tax Assets and Liabilities and Income Tax
20 Share-based Payment Transactions
21 Other Income and Expenses
22 Commitments and Contingencies
23 Related Parties
24 Financial Risk Management: Objectives and Policies
25 Other Information
26 Events after the Reporting Period
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (I)
at 31 December 2013 and 2012
(Expressed in thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-language version
prevails.)

ASSETS Notes 2013 2012
Property, plant and equipment 6 1,601,651 1,618,631
Goodwill 7.1 454,388 422,966
Other intangible assets 7.2 45,613 38,377
Investments accounted for using the equity method 11 787 1,303
Non-current financial assets 9.2 and 9.3 79,086 65,253
Consumer loans from financial activities 9.1 555 1,037
Deferred tax assets 19 57,667 54,550
Non-current assets 2,239,747 2,202,117
Inventories 13 544,867 527,066
Trade and other receivables 9.2 209,661 179,556
Consumer loans from financial activities 9.1 5,698 5,444
Current tax assets 19 77,651 80,218
Other current financial assets 9.3 10,714 30,643
Other assets 12 14,112 15,299
Cash and cash equivalents 14 262,037 350,425
Non-current assets held for sale 15 6,100 13,875
Current assets 1,130,840 1,202,526
TOTAL ASSETS 3,370,587 3,404,643

The accompanying notes form an integral part of the consolidated annual accounts for 2013.
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (I)
at 31 December 2013 and 2012
(Expressed in thousands of Euros)

EQUITY AND LIABILITIES Notes 2013 2012
Capital 16.1 65,107 67,934
Share premium 16.2 618,157 618,157
Reserves 16.3 (659,648) (624,624)
Other own equity instruments 16.4 (10,510) (53,089)
Net profit for the period 209,259 157,884
Traslation differences (37,909) (13,516)
Cash flow hedges (820) (647)
Equity attributable to equity holders of the Parent 183,636 152,099
Non-controlling interests 16.7 - (4,436)
Total Equity 183,636 147,663
Non-current borrowings 17.1 700,672 553,112
Provisions 18 72,570 100,630
Other non-current financial liabilities 8,245 -
Deferred tax liabilities 19 57,978 115,509
Non-current liabilities 839,465 769,251
Current borrowings 17.1 212,328 426,623
Trade and other payables 17.2 1,786,884 1,758,570
Current tax liabilities 19 141,837 118,460
Current income tax liabilities 19 18,702 7,208
Other financial liabilities 17.3 156,679 154,687
Liabilities directly associated with non-current assets held for sale 15 31,056 22,181
Current liabilities 2,347,486 2,487,729
TOTAL EQUITY AND LIABILITIES 3,370,587 3,404,643

The accompanying notes form an integral part of the consolidated annual accounts for 2013.
CONSOLIDATED INCOME STATEMENTS
CONSOLIDATED INCOME STATEMENTS (II)
for the years ended 31 December 2013 and 2012
(Expressed in thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the Spanish-
language version prevails.)

INCOME STATEMENT Notes 2013 2012
Re-expressed
Sales 5 9,844,338 9,707,554
Other income 21.1 142,927 131,793
TOTAL INCOME 9,987,265 9,839,347
Goods and other consumables used 21.2 (7,821,780) (7,754,444)
Personnel expenses 21.3 (820,273) (781,545)
Operating expenses 21.4 (737,463) (708,094)
Amortisation and depreciation 21.5 (266,886) (268,940)
Impairment 21.5 (4,601) (7,648)
Losses on disposal of fised assets 21.6 (10,642) (10,539)
RESULTS FROM OPERATING ACTIVITIES 325,620 308,137
Finance Income 21.7 9,822 26,211
Finance expenses 21.7 (49,467) (52,052)
Profit of financial instruments (105) (85)
Profit of companies accounted for using the equity method 11 554 1,070
PROFIT BEFORE TAX FROM CONTINUING OPERATIONS 286,424 283,281
Income tax 19 (95,495) (101,839)
PROFIT AFTER TAX FROM CONTINUING OPERATIONS 190,929 181,442
Profit/(Loss) net of taxes of discontinued operations 15 5,129 (35,056)
NET PROFIT 196,058 146,386
PROFIT FOR THE YEAR ATTRIBUTABLE TO EQUITYHOLDERS OF THE PARENT 209,259 157,884
PROFIT FROM CONTINUING OPERATIONS 190,929 181,901
PROFIT/(LOSS) FROM DISCONTINUED OPERATIONS 18,330 (24,017)
Losses from continuing operations attributable to non-controlling interests - (459)
Losses from discontinued operations attributable to non-controlling interests (13,201) (11,039)
Basic and diluted earnings per share, in euros
Profit on continuing operations 0.29 0.28
Profit on discontinued operations 0.03 (0.04)
Profit for the year 0.32 0.24

The accompanying notes form an integral part of the consolidated annual accounts for 2013.
CONSOLIDATED STATEMENTS OF CHANGES IN
EQUITY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME (III)
for the years ended 31 December 2013 and 2012
(Expressed in thousands of Euros)
(Free translation from the original in Spanish. In the event of discrepancy, the
Spanish-language version prevails.)

2013 2012
Net profit for the period 196,058 146,386
Other comprehensive income:
Translation differences of financial statements of foreign operations (24,393) (13,142)
(24,393) (13,142)
Cash flow hedges (247) (1,162)
Tax effect 74 348
(173) (814)
Transfers to the Consolidated Income Statement (24,566) (13,956)
Total comprehensive income, net of income tax 171,492 132,430
Attributed to:
Equityholders of the Parent 184,693 143,468
Non-controlling interests (note 16.7) (13,201) (11,038)
171,492 132,430

The accompanying notes form an integral part of the consolidated annual accounts for 2013.