El Corte Inglés releases 2023-2024 fiscal results
What: El Corte Inglés reported its highest Recurring Net Income since 2009, with significant growth across its retail, travel, and insurance sectors.
Why it is important: This milestone underscores the company's robust performance and strategic initiatives, including enhanced profitability, improved efficiency, and strong market positioning in various segments.
In the fiscal year 2023-24, El Corte Inglés achieved a milestone by recording its highest Recurring Net Income since 2009, demonstrating significant growth across its primary business segments: retail, travel, and insurance. The company's Total Transaction Value reached 16,333 million euros, marking a 5.4% increase from the previous year. Retail operations contributed 12,845 million euros, with notable gains in fashion, beauty, food, and hospitality sectors.
The company's EBITDA rose to 1,081 million euros, reflecting a 13.6% year-over-year increase. This improvement was driven by enhanced profitability and operational efficiency. The retail division's EBITDA alone surpassed 840 million euros, while the travel segment achieved a remarkable 84.5% increase, reaching nearly 93 million euros.
El Corte Inglés also achieved significant progress in its online sales, which saw over 900 million visits and more than 17 million online orders, an 8.5% increase from the previous year. The company's financial services and insurance divisions also reported strong performance, with Financiera El Corte Inglés exceeding three million customers and the insurance business recording a 16% increase in policies.
Financially, El Corte Inglés reduced its net financial debt to 2,059 million euros, the lowest level in 16 years, achieving a 1.9x Net Financial Debt to EBITDA ratio. This financial robustness, coupled with the company's solid performance, earned El Corte Inglés an Investment Grade credit rating from Standard & Poor's and Fitch Ratings for the first time in its history.
The company's commitment to sustainability was also highlighted, with significant efforts in resource management, waste reduction, and responsible manufacturing practices. These initiatives earned El Corte Inglés an “AA” ESG Rating from MSCI and the top ESG Risk Rating from Sustainalytics among its peers.
Investments in technology, product development, and store renovations were significant, with 25 stores undergoing refurbishment. Notable renovations included stores in Bilbao, A Coruña, Málaga, and Pozuelo (Madrid), and the acquisition of the iconic building at Puerta del Sol 10 in Madrid.
Overall, El Corte Inglés' fiscal year 2023-24 results reflect a strong and resilient performance across its diverse business lines, underpinned by strategic investments, sustainability commitments, and a robust financial position.
