🛍️ Strong Sales Boost Revenue
El Corte Inglés, led by Marta Álvarez, reported a $220M net profit for H1 FY2024 (March-August), an 11% year-on-year increase. Revenues climbed 2.3% to $8.7B. Comparable sales rose 3.6%, driven by private-label home and fashion items, alongside robust external brand performance. The Spring/Summer fashion line saw strong demand online and in-store.
📈 Improved Profitability and Debt Reduction
EBITDA rose 12.3% to $566M, reflecting improved operational efficiency. Recurrent net profit jumped 38.4% to $172M. The company reduced its net debt by $205M to $2.1B, equivalent to 1.7x EBITDA. This solid performance supports continued investment in growth initiatives while maintaining financial discipline.
✈️ Growth Across All Divisions
The travel division, Viajes El Corte Inglés, saw a 10.3% revenue boost, while leisure sales grew 6.1%. Financial services flourished with a 6.3% revenue rise and an extraordinary 61.7% increase in net profit. Insurance revenues reached $150M, up 6.1%, as the company solidified its leadership in multiple segments.
🍂 Optimism for the Second Half
Autumn marketing campaigns reinforced the H1 success, setting a positive tone for the remainder of FY2024. The company emphasized its commitment to customer-centered offerings and robust financial strategies. Executives anticipate continued momentum across all divisions, bolstered by strong cash flow and balance sheet resilience.
Is debt reduction key to retail success?
