Major retailer in Spain- El Corte Ingles Group- reports massive rise in net profits

SPAIN’S El Corte Ingles Group closed the 2022 financial year with global revenues of €15.3 billion- up 22.5% compared to the previous year with net profits rising seven-fold to €870 million.

The group says the results are down to the way it has developed its business, cut costs, and introduced management improvements which has allowed it to consolidate growth despite customers having to endure higher inflation and interest rates.

“The solid financial position together with a strong recovery in profitability will allow the Group to undertake new projects in the future,” an El Corte Ingles statement said.

The main growth driver has been the ‘retail’ side of the business, which achieved sales of €12.2 billion representing a growth of 7.8% compared to the previous year with fashion doing well as sales went up by 16.3%.

Regarding ‘online’ sales, the group says it is consolidating its ‘strong position’ and moving forward to offer ‘a perfect omni-channel experience’.

The group has more than 3.2 million active online customers and during the 2022 financial year some 14 million orders were registered.

Catering and food registered a sales increase of 6.1%, while household and electrical appliance sales were 3.5% more than the previous year.

In non-retail, the company pointed out a big rise in its travel group Viajes El Corte Ingles with a turnover of €1.6 billion compared to €472 million in 2021 when bookings would have been impacted by the Covid 19 pandemic.

Early indications in 2023 for the spring-summer campaign show ‘good sales’ across all divisions, according to El Corte Ingles.

READ MORE: