After closing 2022 with record profits and revenues, Inditex started this year at full capacity. This is clear from the figures for the first quarter that the textile giant has communicated to the market on Wednesday and that show a rebound in net profit of 54%, reaching 1,168 million euros.

Although it should be borne in mind that in the first quarter of last year the company led by Marta Ortega provisioned the estimated expenses for the year 2022 in the Russian Federation and Ukraine for 216 million euros, so that the net profit without the provision would have been 940 million euros, compared to the comparable 760 million in that growth of 54%.

In any case, the record profit of the first quarter of its fiscal year 2023-2024 (which runs from February 1 to April 30) is due to a "strong" operating performance, as reported by the group. And it is accompanied by a growth in sales of 13% compared to the first quarter of 2022, to 7,611 million euros.

The increase in sales, caused by a "very satisfactory" evolution both in store and online, according to the company, is in line with the trading update of last March, which pointed to an increase of 13.5% until March 13. It has finally remained at 13% until April 30.

According to the results submitted to the CNMV, gross income grew by 14% to 4,603 million euros and stood at 60.5% (+34 basis points compared to the first quarter of 2022). Meanwhile, the operating result (Ebitda) grew by 14%, to 2,195 million, and the net operating result (Ebit) rose by 43%, to 1,483 million.

On the other hand, the result before taxes soared no less than 52%, to 1,505 million euros. And the net financial position grew by 14%, to 10,508 million euros at the end of the first quarter of its last fiscal year.

Investment of 1,600 million

Inditex has stressed that it continues to see "great opportunities for growth". "To take our business model to the next level and further expand our differentiation, we are developing different initiatives for the coming years in all key areas," he highlighted in his statement to the CNMV.

In this regard, the company has informed the market that investments have been planned this year to increase operational capacity, obtain efficiencies and increase differentiation to the next level. Specifically, the textile firm proposes an ordinary investment of around 1,600 million euros in 2023.

In terms of innovation, the company sets a date for one of the key disruptions planned for this year: the elimination of hard alarms. The new security technology will be available in all Zara stores globally in July, with the aim of starting trial operations in the Autumn/Winter 2023 campaign.

And in terms of circularity, the market statement specifies that the Zara Pre-Owned platform, currently available in the United Kingdom, will arrive in France, Germany and Spain in the second half of 2023. "Through this platform, we will continue to help our customers extend the life of their Zara garments through donation, repair or sale between individuals," he says.

Cut in the council

On the other hand, the company has transferred that Emilio Saracho (former president of Banco Popular) will leave his position as director of Inditex at the next shareholders' meeting, on July 11, when his mandate will expire. Following his departure, the group has decided to reduce the number of board members to ten.

With these results, the Board of Directors has also ratified the proposed dividend charged to the 2022 accounts of 1.2 euros per share, which will be submitted for approval by the shareholders' meeting in July.

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