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Inditex Achieves a Historical Profit of 1.8 million in the First Half of the Year

Inditex has informed the Spanish Securities and Exchange Commission (CNMV) that the final dividend for 2021 (€0.465 per share) will be paid on November 2nd, 2022, and will publish the results for the first nine months of 2022 on December 14th. In-store and online sales at constant exchange rates between August 1st and September 11th, 2022 grew 11% over the record 2021 period.

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Inditex achieves historic results in the first half of 2022 despite the current economic situation marked by the war in Ukraine and inflation. The parent company of Zara, Berskha, or Stradivarius, achieves historic sales, Ebitda, and profit figures.

The company chaired by Marta Ortega earned 41% more than in the same period of 2021, up to €1.8 million and sales reached €14.85 million, with growth at a constant rate of 25%.

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Net cash also rose 15% to €9.24 million

“These results are explained by four key factors in our performance. Our fashion proposition, a constantly optimized shopping experience for our customers, our focus on sustainability, and the talent and commitment of our people,” said CEO Óscar García Maceiras.

In addition, the gross margin of the also owner of Pull&Bear or Massimo Dutti stood at €8.6 million, 24.5% higher than in the first half of 2021, and represents 57.9% of sales, the highest in the last 7 years. Operating income (EBITDA) rose by 30% to €4.03 million and operating expenses grew by 20% compared to the first half of 2021, below the growth in sales.

Net cash also rose 15% to €9.24 million. For its part, online sales progressed “satisfactorily” and were positive in the second quarter. As a result, it maintains its forecast that it will exceed 30% of total sales by 2024. “Our business model is working at full capacity and has great potential for future growth,” added Maceiras.

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Meanwhile, in-store and online sales at constant exchange rates between August 1st and September 11th, 2022 grew 11% over the record 2021 period. During its fiscal first quarter, it made openings in 24 markets and has 6,370 stores spread around the world.

Inditex’s supply chain

To address potential supply chain stresses and ensure product availability during the second half of 2022, the company has temporarily brought forward inventory inflows for the fall/winter season. As a result, inventory on July 31st, 2022 grew by 43%.

In addition, the company said it has fully provisioned for estimated expenses for the 2022 fiscal year in the Russian Federation and Ukraine. An extraordinary charge of €216 million was already included in the first-quarter accounts.

The company has also informed the Spanish Securities and Exchange Commission (CNMV) that the final dividend for 2021 (€0.465 per share) will be paid on November 2nd, 2022, and will publish the results for the first nine months of 2022 on December 14th.

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(Featured image by geralt via Pixabay)

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First published in EL INDEPENDIENTE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.