Inditex’s (ITX) net income rose 40% in the first half of the fiscal year (from 1 February 2023 to 31 July 2023), to €2,513 million. Sales grew by 13.5% to €16,851 million, with a “very satisfactory” evolution both in shops and online, the company said. It also stressed that the evolution has been positive in all geographical areas and in all formats. Sales at constant exchange rates grew by 16.6%.
“The results for the first half of the year show that the talent of our teams is consolidating the improvements in the performance of the business model. The permanent commitment to creativity, product quality and customer experience, as well as the determined progress in sustainability, make up a strategy that takes our business model to a higher level”, said Óscar García Maceiras, CEO of Inditex.
Gross margin increased by 14.1% to €9,801 million, reaching 58.2% of sales (+27 basis points compared to the first half of 2022). EBITDA increased by 15.7% to €4,663 million, while EBIT grew by 30.2% to €3,164 million, and profit before tax rose by 39% to €3,252 million.
Inditex has reported that all expense lines have evolved favourably and has indicated that operating expenses grew by 12.5%, below the growth in sales.
The company also emphasised the “strong” generation of funds. Adjusted for lease payments, cash generated grew by 35.4% and cash generated from operations increased by 57.4%.
Net cash increased by 14.1% over H1 2022 to €10,546 million.
The final dividend for 2022 (€0.60 per share) will be paid on 2 November.
In the first half of the year, openings have been carried out in 20 markets. At the end of the period, Inditex operated 5,745 shops.
