Thanks to a “strong” operational performance, as reported this Wednesday by the group, which presented the first results with Marta Ortega at the head of the presidency
Inditex posted a net profit of 760 million euros during the first quarter of the fiscal year 2022-2023 (between February 1 and April 30), which represents an increase of 80% compared to a year earlier, thanks to a “strong” operating performance, such as reported on Wednesday by the group, which presented the first results with Marta Ortega at the helm of the presidency.
The company has decided to create a provision of EUR 216 million corresponding to all costs arising from the situation in Ukraine and Russia. This provision is recorded in the line “Other results” and without it the net profit would have been 940 million euros.
Turnover grew by 36% to 6,742 million euros, supported by the “strong” recovery in store traffic and the good customer reception of the collections of the group’s seven brands.
Inditex has emphasized that growth has been “robust” in all geographic areas, with the exception of those markets, such as Ukraine and Russia, where the group’s stores and online platform have been temporarily closed since February 24 and March 5, respectively, or China, where 67 stores are closed due to covid-19.
The United States continues to grow “remarkably”, consolidating itself as the group’s second largest market.
Likewise, according to the company, online sales continue to “show their strength,” although they are 6% lower than the same period of the previous year, consolidating almost all of the 67% growth recorded in the first quarter of 2021.
The CEO of Inditex, Óscar García Maceiras, has pointed out that these results are the result “of a differentiated model and at full capacity”.
“The strength and adaptability of the business model and the solid performance of our creative, commercial and operations teams deepen the differentiation of our proposal, with a strong focus on innovation, digitization and sustainability,” he added.
Gross margin on sales reached 60.1%, the highest in the past decade, with operating expenses rising 24%, below sales growth.
Gross operating income (Ebitda) grew by 55% to 1,917 million euros, while net operating income (Ebit) grew by 82% to 1,034 million euros.
In the same way, the Group continues to match its constant reinvestment in business growth with a strong cash generation capacity, bringing the net financial position to 9,189 million euros, 28% more.
Source: La Verdad
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