El Corte Inglés returns to profits by earning 120 million in 2021

The sales of the department store group, which is advancing in debt reduction, dismiss the year with an improvement of 22% to 12,508 million

Clara Dawn

El Corte Inglés leaves behind the blow of the pandemic with a strong recovery in its commercial activity that has resulted in the department store group closing fiscal year 2021 (until February 28, 2022) with a net profit of 120 million euros. euros, compared to losses of 2,945 million in 2020.

The group's sales have recovered strongly and the consolidated turnover improved by almost 22% to 12,508 million euros. Ebitda rose to 804 million euros and gross profit to 3,896 million euros, 30.5% more, thanks to a cost optimization strategy in the face of the challenges posed for the sector by the successive variants of Covid, as well as such as the "little tourism recovery, the complex economic context and an unprecedented escalation in energy prices".

As explained by the company in a statement, the engine of the recovery has been the retail business, with sales of 11,300 million, with a significant recovery in the fashion area, whose growth stands at almost 49% compared to the 2020 financial year. And within this segment, fashion has experienced notable growth with 4,090 million euros (48.8% more than the previous year).

For its part, the evolution of sales of home and electrical appliances presents an improvement of 11.3%, exceeding 1,302 million, as well as the area of ​​culture and leisure with an increase of 11.5% and a turnover of 2,145 million . In the food area, "the exceptional moment that the sector experienced in 2020 has been corrected, placing the sales volume at 2,648 million, which represents a slight decrease of 4.8%", as indicated by the group.

Also noteworthy is the good performance of online sales, which already represents 12.3% of the total business volume of the group run by Marta Álvarez.

Similarly, Viajes El Corte Inglés is beginning to recover from the harsh impact that the drop in tourism had on this business during the coronavirus crisis. Despite the fact that the year has also been marked by the different waves and variations, sales reached 984 million euros in the period, 218.6% more than the previous year marked by mobility restrictions and confinements.

In the Insurance area, the activity has maintained an upward path with revenues of 217 million euros (2.8% more than the previous year) and an Ebitda of 98 million, which represents an increase of 5.4%. . "The strategic alliance with the Mutua Group, already signed in the 2022 financial year, will allow us to offer El Corte Inglés customers a better, more complete and personalized insurance offer," they explain from the company.

The department store group has also achieved greater operating cash flow with which it is able to advance in its debt reduction objective, which at the end of the year stood at 3,514 million euros. After the signing of the agreement with Mutua, the debt remains at 2,555 million euros, the lowest level in the last 15 years.

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