IPO, Omnichannel and Debt Reduction
Revolution under the dome of El Corte Ingles. The shareholders’ meeting took place last Friday. has appointed Argentine Gaston Bottazzini as its new CEO department stores. This manager He will be responsible for the implementation of the strategic plan for 2025-2030. Five years in which department stores will have to face many challenges, such as possible IPO something that has been talked about for many years.
His inclusion in this position is very important. This is what President Marta Alvarez said during the meeting: ”Gaston Bottazzini is a key driver of our growth and the implementation of the strategic plan that will drive it.“Bottazzini’s experience enhances the ability of the Executive Committee of Delegates to create a more cohesive group.”
The plan is still under wraps because it is “in the works,” according to the company, which will unveil it before the end of the year. Despite its secrecy, department stores face a number of challenges that will continue into the future, such as an IPO that was mooted for 2026 in a previous plan strategic 2021-2026which will be replaced sooner than expected by a plan that is now being prepared.
In addition, in October 2021 El Corte Inglés reaches agreement with Mutua Madrileña As a result, the insurer acquired 8% of the shares for a total of 555 million euros and 50.01% of the two companies distributing the insurance of the distribution giant (SECI and CESS) for 550 million euros.
The agreement also included a commitment by the department stores to go public in less than six years, or by 2028. The deal, which saw Mutua acquire 8% of the company, represents Department stores valued at 7 billion euros.
Bottazzini could thus be the CEO who finally pulls off the long-awaited IPO that has been rumored for years. However, the company declined to comment on the matter.
Bottazzini will not be alone in this endeavor, as he is assisted by two CEOs: José María Folache, in charge of retail, and Santiago Bau, a former Goldman Sachs banker, in charge of finance. Following the departure of Victor del Pozo, the previous CEO, in March 2022, this figure was dropped. and settled on this bicephaly. Now both directors will report to the new CEO.
Figure Santiago Bau This is especially important to achieve the goal of entering the stock market. He holds an E-3 degree from ICADE, a degree in political science and sociology from UNED and an MBA from Harvard University. Until March 2022 (the month in which he arrived at El Corte Inglés), he held the position of Senior Executive Director, Goldman Sachs Business Bankcompany, where he worked for more than 15 years.
Omnichannel and debt
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Omnichannel is another problem. The company has fully entered the channel Online in the midst of a pandemic and its consolidation is very important. So far, its websites and apps have been visited by more than 900 million people. Last year, more than 17 million orders were delivered, an increase of 8.5% compared to the previous year.
Gaston Bottazzini, the new general manager of El Corte Inglés.
EKI.
On a financial level, It is vital to continue reducing your debt. Last year they reduced it to 2,059 million euros (compared to 2,295 million the previous year), which represents a multiple of 1.9 times EBITDA and represents the lowest level in the last 16 years.
But the truth is that Bottazzini arrives at some point. sweet into the company. The Group ended the 2023 financial year (as of 29 February 2024) with a net profit of 480 million euros, lower than the previous year (870 million) due to the absence of extraordinary income from the transaction with Mutua.
Excluding exceptional items, department stores last year posted their highest recurring net profit since 2009. registering an increase of 73.7% and reaching 359 million euros.
Likewise, the company, chaired by Marta Alvarez, recorded global revenues of €16,333 million, representing an increase of 5.4% compared to the previous year. The majority of this sales volume comes from retail: €12,845 million.which represents an increase of 3.8% compared to the previous year.
Bet on Alvarez
Bottazzini enjoys the trust of Marta Alvarez. The President signed him as a personal adviser to the President and the Delegates’ Commission. Until January 1, 2024, he was the CEO of the Chilean department store chain Falabella. He then ended up at El Corte Inglés, where he held this advisory position for six months.
The Argentine becomes like this in that the first foreign manager to take charge spanish group. Tell me To the Executive Committee of Delegates, chaired by Marta Alvarez herself and composed of José Ramón de Hoces and Javier Rodríguez-Arias, as well as the rest of the Board of Directors.