The El Corte Inglés Group has achieved growth in turnover, Ebitda and margins during the first semester of the 2018 fiscal year (from March 1 to August 31). Despite the adverse weather conditions that have affected some areas of retail, the Turnover reached € 7,585 million, which represents an increase of 0.4%, while Ebitda has grown by 4.4% to reach 335 million.
As reported by the company in a statement, the gross operating profit (Ebitda) has been favored by the improvement of margins in all areas of the Group thanks to the new management and the strategic actions that are being carried out. In the Group as a whole, the gross margin has increased by 20 basis points (1.2% more).
Debt and financial expenses have also improved due to the behavior of the business and the divestments made in non-strategic properties worth 212 million. During the first six months of the exercise, net financial debt has fallen by 347 million, standing at 3,652 million at the end of the period. Also, the refinancing process carried out in the previous months, has allowed a decrease in financial expenses by 18 million euros, reaching 68 million between March and August. All this has allowed improving the net financial debt ratio on Ebitda, which goes from 3.3 to 3.1.
Results by business lines
By lines of activity, theretail has achieved an Ebitda of 235 million euros, which represents an increase of 2.2% over the previous year. Turnover was 6,017 million euros, 0.6% less than in the same period of the previous year, mainly due to the adverse effect of the weather in the textile sector. Although the Fashion sales at El Corte Inglés they are reduced by 1.5%, this percentage is two points less than the sector in Spain, since this falls by 3.6% according to Acotex data. In any case, it should be borne in mind that fashion sales are mainly concentrated in the second part of the fiscal year.
In the retail sector, the growth of home and culture / leisure areas, as well as the positive evolution of Supercor and the department stores in Portugal.
On the other hand, Travels El Corte Inglés turnover increased by 4.6% to reach 1,565 million euros, with an increase in Ebitda of 14.3% to 48 million. The Vacation segment it has benefited from the favorable macroeconomic dynamics and the promotional initiatives that have been carried out. The segment of Business, which has achieved a significant volume of new contracts.
In Information technology, an Ebitda increase of 14.3% has been achieved to 8 million, despite the fact that the turnover reached 308 million, 2.8% less than the same period of the previous year. This positive evolution is due to the development and commercialization of products with high added value.
As for the division of Insurance, it has improved both turnover, 9.5% more, and Ebitda than has increased by 11.8% to 38 million. With a turnover of 104 million euros in the first semester, the Insurance area has achieved increases in its basic activities (home, car, health, life and accidents) and improvements in core premiums, that is, individual risk life and individual accidents.