El Corte Inglés achieved its best result in 15 years

El Corte Inglés managed to close its 2023-2024 financial year with an ordinary net profit of 359 million euros, representing an increase of almost 74% compared to the previous year. The group’s net result exceeded 480 million, a lower year-on-year figure given the lack of extraordinary income generated last year from the Mutua transaction.

These are the best repeat results achieved since 2009, the year the Great Recession began, thanks to gains posted in core businesses. This evolution was made possible by its model, “aimed at achieving customer satisfaction through a complete and diversified commercial offering,” the corporation notes.

Growth was seen across all areas of retail, particularly in fashion and beauty, as well as growth in food and hospitality sales. Similarly, the travel and insurance divisions achieved their best ever performance in the last financial year.

For the year (ended February 29, 2024), the company’s global revenue was €16,333 million, representing an increase of 5.4% compared to the previous year. The majority of this volume comes from retail trade: €12,845 million, representing an increase of 3.8% compared to the previous year.

The positive dynamics of the various activities allowed El Corte Inglés to increase its Ebitda to EUR 1,081 million, an increase of 13.6% compared to the previous year. This growth was also supported by improved profitability and efficiency, helping to consolidate the growth trajectory. In the retail business, Ebitda exceeds €840 million, up 11.2% on the previous year, while in Travel it is almost €93 million, up 84.5% on 2022-23.

The strong positioning of the fashion sector stands out, with a strong presence of national and international brands as well as El Corte Inglés own brand collections, making the company a benchmark in the sector, capable of setting trends with its proposals and innovations. and attractive design which has been very well received by our customers.

The catering and hospitality sector has also achieved significant growth, including supermarkets El Corte Inglés, Hipercor, Supercor, Sánchez Romero, Gourmet Club and restaurants of various formats. The diversity of the commercial offer and the constant introduction of innovative products have strengthened the company’s position in this market segment. Likewise, the housing, cultural and recreation sectors maintained good performance and sustained growth.

Viajes El Corte Inglés, for its part, achieved global revenues of 3,306 million euros, an increase of 12.6% compared to the previous year, cementing it as a leader in the sector with a strong market position. With more than 700 of its own branches, Viajes El Corte Inglés has achieved the best results in its history, while making steady progress in its omnichannel offer and wide range of products for both leisure and business.

In terms of online sales, the Group’s omnichannel expertise and strong position are strengthened, with more than 900 million visits to its websites and apps and more than 17 million orders (up 8.5% year-on-year).

For their part, financial services companies are consolidating themselves as benchmark companies in their sectors, expanding the range of products offered to clients. Financiera El Corte Inglés has surpassed three million customers with its new Mastercard. Insurance completed the best year in its history, increasing the number of policies issued by 16%.

Investments made

The financial strength of El Corte Inglés is also reflected in the reduction of net financial debt, which amounts to 2,059 million euros, representing 1.9 times Ebitda and representing the lowest level in the last 16 years.

The company’s strong business performance and future prospects have earned it an investment-grade rating from Standard & Poor’s and Fitch Ratings for the first time in its history. These rating agencies highlight the size of the Group, its relevance in Spain, leadership and brand strength, business and category diversification (fashion, beauty, home, food, leisure and entertainment, electronics, travel, financial services and insurance). , energy…); its omnichannel offer and portfolio of unique properties in prime locations in key cities in Spain and Portugal.

In fiscal year 2023, investments increased in both technology and products, in the development of new services and in the renovation of 25 El Corte Inglés establishments. In this sense, the complete renovation of the centers in Bilbao, A Coruña, Malaga or Pozuelo (Madrid), the various supermarkets and the new Gourmet Club premises in various establishments stands out. All these improvement measures, as well as others that are already being implemented (Preciados in Madrid or Jerez in Cadiz), also demonstrate the company’s involvement in preserving the local environment. In addition to all these activities, during the year the building Puerta del Sol 10 was acquired, an iconic building located in the heart of Madrid and adjacent to another establishment, El Corte Inglés.