Sep 15 2021
The Galician group puts an end to the crisis caused by the pandemic. During the first semester of its fiscal year, the period between February 1 and July 31, Inditex surpassed the losses of 195 million euros recorded in the previous year to reach a profit of 1,272 million euros.
For its part, the turnover of the textile conglomerate founded by Amancio Ortega stood at 11,936 million euros, which is 49% more than the same period in 2020, and 53% at constant exchange rates. According to the figures published in the group’s semi-annual financial report, released this Wednesday, September 15, Inditex has broken sales, profit and cash generation records in the second quarter, corresponding to the period between May and July. These are the highest figures that the company has recorded in that period.
Sales at constant exchange rates accelerated to exceed the previous historical reference of the second quarter of 2019 by 7% and reached 6,993 million euros. Likewise, in the same line of results, the profit for the second quarter in 2021 reached 850 million euros and exceeds the previous level of 2019.
The president of Inditex, Pablo Isla, has stated that the good results are “the result of the commitment of all the people who make up the company to offer the highest creative quality of fashion”. “Thanks to all of them, we are making the most of the benefits of sustainable strategic transformation in our business model,” he highlighted.
The online channel will exceed 25% of total billing in 2021
Likewise, the gross operating result (Ebitda) exceeded 3.1 billion in the first semester, 109% more, while the gross margin reached a “robust” 57.9% on sales, as a result of the execution of the business model , its flexibility and digital transformation. With the information currently available, the company expects a gross margin of around 57.5% by 2021.
Online activity, meanwhile, continues to record “notable growth”, standing 36% at a constant exchange rate above that registered in the first half of 2020, and 137% higher than in 2019, prior to the pandemic. Online sales will exceed 25% of the total in 2021. At the end of the period, cash generation reached 8,023 million euros, up from 6,486 million in 2020 and 6,730 million in 2019.
The company founded by Amancio Ortega has highlighted that these figures have been achieved in an environment in which 15% fewer business hours have been available (-6% in the second quarter) due to closures, limitations and capacity restrictions that have been adopted according to the incidence of the pandemic in the different geographic areas and specific localities.
Triana Alonso with Europa Press
Copyright © 2021 Hermesbelts.co.uk All rights reserved.