Textiles & Apparel / Garment
INDITEX reports very strong operating performance in its interim report for the first half of 2023
/ In 1H2023, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model
/ Óscar García Maceiras, CEO, "The 1H2023 results demonstrate that the talent of our teams continues to consolidate the improvements in the performance of our business model. The ongoing commitment to creativity, quality and customer experience, as well as the determined progress in sustainability, drives a strategy that is taking our business to the next level"
/ The Spring-Summer collections have been very well received by our customers. Sales grew +13.5% over 1H2022 to reach €16.9 billion, showing very satisfactory development both in stores and online. Sales were positive in all geographical areas and in all concepts. Sales in constant currency grew 16.6%
/ Gross profit increased 14.1% to €9.8 billion. The gross margin reached 58.2% (+27 bps versus 1H2022)
/ All expense lines have shown a favourable evolution. Operating expenses increased 12.5%, below sales growth
/ EBITDA increased 15.7% to €4.7 billion
/ EBIT increased 30.2% to €3.2 billion and PBT 39% to €3.3 billion
/ Net income increased 40.1% to €2.5 billion
/ Strong cash flow generation. Lease adjusted funds from operations grew 35.4%, and cash from operations increased 57.4%
/ The net cash position grew 14.1% to €10.5 billion versus the same period last year
/ The FY2022 final dividend of €0.60 per share will be paid on 2 November 2023
/ Autumn-Winter collections have been very well received by our customers. Store and online sales in constant currency between 1 August and 11 September 2023 increased 14% versus the same period in 2022
Interim Half Year 2023: Very strong operating performance
In 1H2023, Inditex continued with a very robust operating performance due to the creativity of the teams and the strong execution of the fully integrated business model.
The Spring/Summer collections have been very well received by customers. Sales grew 13.5% over 1H2022 to reach €16.9 billion, showing very satisfactory development both in stores and online. Sales were positive in all geographical areas and in all concepts. Sales in constant currency grew 16.6%.
In 1H2023, openings have been carried out in 20 markets. At the end of the period Inditex operated 5,745 stores. A list of total stores by concept is included in Annex I.
Net sales by concept in 1H2023 and 1H2022 are shown in the table below.
Inditex continues to roll out its global sales platform. Store and online sales by geographical area are shown in the table below.
In 1H2023, the execution of the business model was very strong. Gross profit increased 14.1% to €9.8 billion. The gross margin reached 58.2% (+27 bps). Based on current information Inditex expects a stable gross margin (+/-50 bps) for 2023.
All expense lines have shown a favourable evolution. Operating expenses increased 12.5%, below sales growth. Including all lease charges, operating expenses grew 220 bps below sales growth.
EBITDA increased 15.7% to €4.7 billion.
EBIT increased 30.2% to €3.2 billion and PBT 39% to €3.3 billion. As a reminder, in 1Q2022, Inditex reported a provision for expected expenses for FY2022 in the Russian Federation and Ukraine of €216 million under Other results.
Annex II includes a breakdown of the Financial Results.
The tax rate applied to the 1H2023 results is the best estimate for the fiscal year 2023 based on available information.
Net income increased 40.1% to reach €2.5 billion.