El Corte Inglés lays the foundations for a new stage with its 2022 results

news July 2023 Fashion Network

What: The 2022 annual report of El Corte Inglés reports a 22.5% increase in revenue from the previous year as a result of the company focusing on improving its financial and business position.

Why it is important: The Spanish clothing distributor, EL Corte Inglés reveals its 22.5% revenue increase and EUR 15,327 million in turnover in its 2022 report showcasing its comeback from the company’s only net loss year of 2020. 

The 2022 financial results of El Cortes Inglés showcase its impressive position of a 22.5% increase in revenue as well as the group’s financial strategies to improve its standing. The newspaper, Expansion reasons that the turning point for the company was its alliance with Matua where it sold 50.01% of Seguros El Corte Inglés and 9% of the department store capital group for EUR 1,105 million.

The company aimed to strategically use the new funds to reduce their debt which already stood at a 15-year low, however, the pandemic had caused a EUR 1 billion increase in their liabilities.

With debt accounting for 2.4% of the EBITDA, the company will focus its efforts on making the business less vulnerable to economic cycles by offering new services. The optimistic financial plans for the company from the period 2021-2026, hope to increase EBITDA from its 2022 figure of EUR 951 million to EUR 1,700 and reduce debt by 60%. It then aims to be in a suitable position and enter the public capital market with an IPO.

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