Marta Ortega opens with a record for Inditex despite the closures in Russia

The multinational entered 6,742 million in the first fiscal quarter, 36% more

Edurne Martinez

Inditex recorded a net profit of 760 million euros during the first quarter of its fiscal year 2022-2023 (between February 1 and April 30), which represents an increase of 80% compared to a year before, thanks to a "strong" operational performance, as reported on Wednesday by the group, which has presented the first results with Marta Ortega at the helm of the presidency.

The company has decided to make a provision of 216 million euros corresponding to all expenses arising from the situation in Ukraine and Russia. This provision is recorded in the "Other results" line and without it the net profit would reach 940 million euros.

Sales grew by 36%, to 6,742 million euros, supported by the "strong" recovery in store traffic and by the good reception by customers of the collections of the group's seven brands.

Inditex has highlighted that growth was "robust" in all geographical areas, with the exception of those markets, such as Ukraine and Russia, where the group's stores and online platform have been temporarily closed since February 24 and March 5, respectively, or China, where 67 stores have been subject to closures related to covid-19.

The United States continues to grow "remarkably" and consolidates itself as the group's second largest market.

Likewise, according to the firm, online sales "continue to show their strength", although they are 6% below the same period of the previous year, consolidating almost all of the 67% growth registered in the first quarter of 2021.

The CEO of Inditex, Óscar García Maceiras, has pointed out that these results are the result "of a differentiated model and at full capacity".

"The strength and adaptability of the business model, and the solid performance of our creative, commercial and operational teams deepens the differentiation of our proposal, with a strong focus on innovation, digitization and sustainability," he added.

The gross margin on sales reached 60.1%, the highest in the last ten years, with an operating expense that grew by 24%, below the growth in sales.

The gross operating result (Ebitda) grew by 55%, to 1,917 million euros, while the net operating result (Ebit) grew by 82%, to 1,034 million euros.

In the same way, the Group continues to match its constant reinvestment in business growth with a strong cash generation capacity, which places the net financial position at 9,189 million euros, 28% more.

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