Inditex increases profits by 30% and earns 5,381 million euros despite the slowdown in consumption and global tension

Updated Wednesday, March 13, 2024-08:12

Inditex has no ceiling.

The textile giant destroys all its brands and once again breaks sales and profit records in a year marked by the escalation of inflation, the containment of consumption and international economic and geopolitical uncertainty, with open war conflicts in Ukraine and Gaza and tension in the Red Sea that has been hitting world trade for months, making shipments more expensive and delaying goods.

According to the results that have just been communicated to the CNMV, the profit of the group that owns brands such as Zara, Massimo Dutti and Oysho soared by 30.3% in 2023, to 5,381 million euros, while turnover grew by 10 .4% and reached 35,947 million in the fiscal year, which runs from February 1, 2023 to January 31, 2024.

The Marta Ortega-Óscar García Maceiras tandem consolidates spectacular results on its second birthday, achieving historical highs in the stock market and producing unprecedented figures in the history of the company.

As a result, 2023 overtakes 2022 and takes the title of 'Inditex's best year' to date.

"Inditex's performance in 2023 has been excellent. Our teams have been able to take advantage of opportunities to continue growing profitably. We are investing to boost future growth and continue offering attractive remuneration to shareholders," highlighted the CEO.

In fact, the board of directors will propose to the general meeting of shareholders an increase in the dividend of 28% for the financial year 2023, up to 1.54 euros per share, made up of an ordinary dividend of 1.04 euros and an extraordinary dividend of 0 .50 euros per share, as communicated to the CNMV.

This implies that Amancio Ortega, who has 59.29% of the capital, will receive 2,845 million euros.

The remuneration is made up of two equal payments: on May 2, 2024, a payment of 0.77 euros per share, corresponding to the ordinary dividend, and on November 4, 2024, a payment of another 0.77 euros per share (0. 27 euros ordinary plus 0.50 euros extraordinary).

The Galician fashion brand had never earned so much money.

If in 2022 the profit already increased by 27%, reaching 4,130 million euros, last year it catapulted another 30%, reaching almost 5,400 million.

Although in the third quarter the pace of sales growth slowed due to weather conditions that delayed purchases of autumn clothing, in the first nine months of the year it had already achieved profits of 4,102 million, with a rebound of 32.5% which was already pointing to an annual record.

In the fourth quarter, which runs from November to January for the fiscal year and includes the strongest consumer campaigns, Inditex recorded sales of 10,338 million euros.

To date, the highest figure for the period had been that recorded in 2022, with 9,514 million, well above the previous maximum, in 2019, when the company closed the fourth quarter of the year with a turnover of 8,466 million.

According to the information transferred to the CNMV, the operating result (Ebitda) grew by 13.9%, to 9,850 million euros, and the net operating result (Ebit) by 23.4%, to 6,809 million euros.

On the other hand, the company estimates ordinary investments of around 1,800 million euros in 2024, which will be dedicated mainly to the optimization of its commercial space, its technological integration and the improvement of online platforms.

Likewise, it will undertake a two-year extraordinary investment program focused on the expansion of logistics capacity, allocating 900 million euros in each of the years 2024 and 2025, as reported in its annual results.