El Corte Inglés closed 2022 with the biggest profit in its history. The group chaired by Marta Álvarez won 870 million thanks to the “extraordinary”, that is to say, to the operation completed in May of last year by which Mutua Madrileña acquired 8% of the capital from the equity portfolio for 555 million and obtained control of the insurance company and the brokerage, with 51.01% respectively. Recurring net profit without these “extraordinary items” amounted to 207 million, the best result in recent years, after achieving income worth 15,327 million, 22% more than in 2021.
Ebitda, or gross operating profit, exceeded 951 million, 18% more than the previous year.
These 2022 results are accompanied by a reduction in the department store group’s net financial debt to 2,295 million at the end of the last fiscal year. El Corte Inglés’ debt thus reached its lowest level in the last 15 years, since the previous economic crisis. “This solid financial position, together with the strong recovery of profitability, will allow the group to tackle new projects for the future”, the company explained yesterday in a statement. Among these projects, which should crystallize in the coming months, is the launch of a securities agency in collaboration with Mutua Madrileña for the marketing of investment products. That is why the holding company hired Helena Calaforra in November last year, until then director of Caser Asesores Financieros.
The retail business was what drove El Corte Inglés’ results last year. The sales of this division, the group’s main one, reached 12,213 million, almost 8% more than in 2021, “with a special prominence in the fashion area”, which achieved revenues of 4,683 million, and improve by 16% those of the previous year. The restaurant and food area, on the other hand, recorded an increase in sales of 6%, up to 2,827 million; that of electronics, sport and leisure reached 2,184 million, 2% more; and that of home and electrical appliances improved its results by 3% compared to the previous year to achieve sales of 1,345 million. Regarding online commerce, El Corte Inglés detailed that it already has 3.2 million active customers who last year made 14 million orders through its channels.
Viajes El Corte Inglés also improved its turnover to 1,677 million, practically quadrupling last year’s income thanks to the recovery of tourism, both holiday and business, and the removal of health restrictions. The financial services unit, in alliance with Banco Santander, and the insurance area, thanks to this agreement with Mutua Madrileña, also contributed to improving the annual income statement.
In a year marked by inflation, rising costs – last year the group paid an energy bill of 150 million more – and rising interest rates, El Corte Inglés wanted to highlight “the good evolution of their businesses”. The group also advanced a “very positive start to 2023 thanks to the good behavior of the spring-summer campaign, which has boosted sales in all divisions”.
El Corte Inglés reached an agreement with the unions in March of this year to reorganize the group’s workforce and transfer 2,100 central service professionals to the stores with the aim of improving customer service. Likewise, the company launched a program of low incentives for workers older than 59 years.
