June 20, 2021

The pandemic costs El Corte Inglés historic losses in 2020


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The impact of the health crisis and the restrictions cost El Corte Inglés historical losses of 2,945 million euros in 2020. Despite this, and after providing 2,500 million euros to forecasts,
the department store group managed to close last year with a positive Ebitda of 142 million euros
. In a statement, the company highlighted that this positive result is due to “having shown flexibility and reaction capacity to renew its stores, promote digitization and omnichannel, and develop new businesses.”

In accordance with the accounting prudence measures, this year provisions amounting to 2,500 million euros have been recorded which have been used to cover impairment of fixed assets, inventories and tax credits.

Most of these provisions, as explained by the company, derive from an update of assets as a consequence of the transformation towards a more digital business model. After these provisions, the net result has been negative by 2,945 million euros.

Despite this, the group exceeds the year of the pandemic with a positive Ebitda of 142 million euros, after having shown “flexibility and reaction capacity” to renovate its stores, drive digitization and omnichannel, and develop new businesses. “This ability to adapt confirms confidence in its strategy for the future,” said the company, which achieved a consolidated turnover of 10,432 million euros, 31% less.

From the group they have also highlighted the recovery recorded during the first quarter of the current fiscal year 2021-2022 (from March to May), in which it has already achieved a positive result, similar to that obtained a year earlier. During this period, ‘retail’ sales “are meeting expectations, reaching levels close to those of 2019, despite the persistent effects of the pandemic,” according to the department store group.

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