El Corte Inglés plans to raise its EBITDA to 1.7 billion and reduce its debt by 60% until 2026 | Companies



The board of directors of The English Court has approved this Friday the new strategic plan of the company with a view to the year 2026, which has been presented today at the shareholders’ meeting and which sets the objective, among others, of doubling its results in this period and reducing its current debt.

This has been communicated by the company, which informs that the shareholders’ meeting has approved all the proposals made by the board and that made up the agenda, such as the approval of the 2020 accounts and the distribution of a dividend of 25 million euros. The president of El Corte Inglés, Marta Alvarez, has stated that “the 2020 financial year has been key for the transformation of our business model and has made us stronger and more solid”.

The three main objectives of the new strategic plan, designed by Víctor del Pozo, are to achieve an EBITDA of 1,700 million euros in 2026, 40% more than the one it had before the pandemic, in addition to doubling its net result for that year with respect to the one recorded at the end of the current fiscal year; too reduce your debt levels by 60%, which at the end of fiscal year 2021 exceeded 3,800 million euros, and multiply the online sales to represent 30% of total revenue. Something that the pandemic has triggered and that has become a central bet of the group. In the last year it reached 1,800 million euros, 132% more than in 2019 and 17% of total revenue.

“The future of El Corte Inglés is based on the construction of a business ecosystem supported by a unique retail activity, which pursues four benefits: maximizing value and profitability for the group; improving retail competitiveness; creating synergies between different businesses of the group, and reduce risks “, explained Del Pozo to shareholders. He has defined El Corte Inglés of the future as a”ecosystem of services and businesses, where new activities will play a relevant role. In other words, a company that makes people’s lives easier by offering the best selection of products and services ”.

For the president of the group, Marta Álvarez, it is a plan “realistic but ambitious” that the company will undertake “thanks to our main assets: our team, trust and brand”, under a framework of “rigor, seriousness and austerity that have always characterized us as a company. This will allow us to advance in our business model. model of success and future ”.

Recovery underway

Marta Álvarez herself has advanced that the company “is in full recovery” and that the first quarter of fiscal year 2021, concluded in May, closed “with figures very close to those of 2019”, although the complete recovery of the group’s activity goes hand in hand with that of tourism and, therefore, of the activity from your travel agency.

This, recently merged with Logitravel, will continue to be one of the important legs of the company’s business until 2026, together with commercial activity, insurance and financial services, and the entry into businesses such as logistics, telecommunications, energy, security and alarms, in which it has made its foray in the last two years.

To this will be added the launch in autumn of the new El Corte Inglés Shopping Card, by the hand of Master Card, which can be used in any business or service and not only in the group’s stores.

The English Court it is in full evolution and transformation of our businesses, which will allow us to approach the future with modernity; obtain new sources of income, and achieve greater business solidity ”, Álvarez concluded.

The company begins a new stage after the coronavirus caused its most difficult exercise. In 2020, El Corte Inglés suffered a net loss of 2,945 million euros, the first negative result in its history and which has been endorsed today by the shareholders’ meeting.

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