Inditex’s (ITX) net profit rose 54% in its first fiscal quarter (1 February 2023 to 30 April 2023), to €1.168 billion. Sales grew by 13% in the first fiscal quarter, to €7,611 million, with a performance that has been described as “very satisfactory” both in shops and online. They also stressed that sales were positive in all geographic areas and in all formats. Sales at constant exchange rates were up 15%. Gross margin grew by 14% to €4,603 million and stood at 60.5% (up 34 basis points compared to the first quarter of 2022).
Operating income (EBITDA) grew by 14% to €2,195 million. EBIT increased 43% to 1,483 million and profit before tax rose 52% to 1,505 million. Cash generation has grown notably, the textile company pointed out. Net cash increased by 14% to €10,508 million.
As approved last March, the Board of Directors will propose to the General Shareholders’ Meeting the approval of a dividend of €1.20 per share charged to the results of the 2022 financial year. The dividend is made up of two equal payments of €0.60 per share: the first was paid on May 2 this year and the second will be paid on November 2.
As usual, Inditex has advanced data for the second quarter. Shop and online sales at constant exchange rates between May 1 and June 4 2023 have grown by 16% over the same period of 2022.
The Annual General Shareholders’ Meeting will be held at Inditex’s registered office on July 11 2023. Emilio Saracho Rodríguez de Torres will step down as a director once his term of office expires at the next Annual General Meeting. Inditex has thanked him for his important contribution to the Board.
The Board of Directors has resolved to propose to the Annual General Meeting of Shareholders that the number of members of the Board be fixed at 10.
