El Corte Inglés closes 2022 at +22% and accelerates internationally
What: El Corte Ingles’ growth in 2022 is progressing thanks to increasing retail sales and internationalization
Why it is important: Private labels can be a source of growth and market shares when considered as brands.
El Corte Inglés is continuing its international expansion of its own brands, which are already present in more than 30 countries through partnerships with local strategic partners. The company's annual report highlights its efforts to strengthen its international presence by introducing new product categories in the home sector, in addition to its existing offerings in fashion and food. In the food sector, it has formed an alliance with a Filipino company to sell El Corte Inglés and El Corte Inglés Selection products in its supermarkets and has expanded its collaboration in Ecuador. In the fashion sector, Sfera is the most internationally recognized brand, present in 18 countries with a total of 490 points of sale.
In 2022, El Corte Inglés Group reported global revenues of over EUR 15.327 billion, a 22.5% increase over the previous year. This strong growth has driven EBITDA to €951 million, with a strong recovery in profitability. The group's net recurring profit reached EUR 207 million, the highest in recent years, despite a EUR 150 million increase in energy costs. The group's net total profit also reached €870 million, the highest figure ever achieved.
The group's solid financial position is reflected in its reduced net financial debt of EUR .295 billion, the lowest level in the past 15 years. This financial strength, coupled with a strong recovery in profitability, will enable the group to undertake new projects in the future.
The main driver of growth has been the retail business, with sales of EUR 12.213 billion, a 7.8% increase over the previous year, with a strong focus on the fashion sector. Online sales continue to grow, with over 3.2 million active online customers and approximately 14 million orders in 2022.
The group has also seen significant growth in its non-retail businesses, including travel, financial services, and insurance. The travel business, in particular, has reported revenues of EUR 1.677 billion, compared to EUR 72 million the previous year, with an EBITDA of over EUR 50 million.
Overall, El Corte Inglés is in a strong position for the fiscal year 2023, with a positive start to the year driven by a successful spring-summer campaign. The group's solid balance sheet, ample liquidity, and optimized capital structure provide greater flexibility to operate in a changing macroeconomic environment.
