The multinational entered 6,742 million in the first fiscal quarter, 36% more, but online sales fell by 6%
Inditex has recorded a net profit of no less than 760 million euros net between February and April, its first fiscal quarter. According to data published this Wednesday by the group that brings together brands such as Zara, Pull & Bear or Massimo Dutti, these figures represent growth of 80% compared to the same period last year, when the pandemic still subtracted part of the business due to restrictions on movements.
Moreover, the figures include a provision of 216 million euros for expenses in Ukraine and Russia during this year due to the conflict, so without this the result would have been around 940 million. These are good results in the debut of Marta Ortega as non-executive president of the group after the departure of Pablo Isla on March 31, which made the multinational grow 5% on the stock market to 23.35 euros per share.
After the pandemic, sales in stores once again obtained their best performance and turnover grew by 36% in this period, reaching 6,742 million euros for the company. In a statement, the company highlights that the “robust” growth in all geographic areas, except in Ukraine and Russia, where it keeps its stores temporarily closed, and in China, where 67 of its establishments have been pending specific closures due to the variant omicrom. The United States continues to grow and is already the second largest market in the group, only behind Spain. In addition, in this period, openings have been made in 16 markets, reaching 6,423 stores.
What has fallen slightly are the group’s online sales, due in part to the good record in the first quarter of 2021, where temporary closures in some areas due to the pandemic boosted online purchases. Thus, compared to that period, the online channel fell by 6% compared to the 67% growth of a year ago. The company has set itself the goal of making internet sales exceed 30% of the total in 2024, currently they are at 25%.
Integration of the physical and online channel
The pandemic gave this section a big boost and 2021 has already closed with almost 7,500 million euros of income on this side, 14% more even than the 6,600 million obtained in 2020, the year of confinement, which meant increasing this channel by a 77%.
On the Ebitda side, it grew by 55% to 1,917 million euros, while Ebit grew by 82% to 1,034 million.
Óscar García Maceiras, the new CEO of Inditex, points out that these results are the result of “a differentiated model that is fully operational”. “The strength and adaptability of the business model, and the solid performance of our creative, commercial and operational teams deepens the differentiation of our proposal, with a strong focus on innovation, digitization and sustainability,” added the manager.
But the firm does not believe that they have peaked, on the contrary. In the statement they assure that the strategic initiatives to reinforce the fully integrated business model of store and online at a global level “is accelerating”. “Sustainability and digitization are a key part of our strategy,” the company stressed.
Dividend to shareholders
The shareholders’ meeting will be held on July 12 and, as approved last March, the board of directors will propose a dividend of 0.93 euros per share charged to the results of 2021. Of these, half (0.465 euros) has been paid on May 2 and the other half will be paid on November 2. In addition, the board proposed an extraordinary dividend of 0.40 euros per share to be paid in relation to the 2022 financial year.
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