El Corte Inglés posts 7.5 percent EBITDA growth in FY16

The El Corte Inglés Group said that the company closed the year 2016 with growth in turnover, EBITDA, Ebit and net income. The company’s EBITDA increased by 7.5 percent to 981 million euros (1,179 million dollars), while consolidated net profit reached 161.86 million euros (194.6 million dollars), representing growth of 2.4 percent over the previous year. The group's turnover amounted to 15,504.57 million euros (18,644 million dollars), 2 percent higher than last year, according to the management report and the annual accounts closed on February 28, 2017.

Speaking at the shareholders’ meeting, the company’s President Dimas Gimeno, said that the 2016 financial year has closed with an increase in all the fundamental variables in the income statement. It was the third year of the recovery, an improvement that is reflected both in the growth of the Spanish economy and in the role of El Corte Inglés in the complex framework of distribution.”

Financial highlights of the year under review

The company’s operating profit (EBIT) increased by 319 million euros (383 million dollars), up 6.8 percent from the previous year. The department store format, which is the main activity within the group posted turnover of 9,716.72 million euros (11,684 million dollars), an increase of 2.8 percent over last year. Ebitda exceeded 652.2 million euros (784 million dollars), 20.6 percent more than the previous year.

The company said, during 2016, the commitment to omni-channel activity was reinforced with a greater integration between physical stores and the online world. Hipercor achieved a turnover of 1,322.14 million euros (1,591 million dollars), with an EBITDA of 71.94 million euros (86.5 million dollars).

The supermarket chain, which includes Supercor and Supercor Express brands, reported a turnover of 613.36 million euros (738 million dollars), an increase of 1.9 percent over the previous year, with an EBITDA of 27.58 million euros (33.1 million dollars). The fashion and accessories chain Sfera has had a positive performance with gross sales of 446.9 million euros (537 million dollars), an increase of 5 percent and its contribution to consolidated turnover stood at 247.61 million euros (298 million dollars), 7.3 percent more than in the previous year. Ebitda has exceeded 32 million euros (38 million dollars). During fiscal year 2016, Sfera opened 19 own stores and more than 70 new outlets in other markets.

Regarding the evolution of the business during the first half of the year, Dimas Gimeno said, "next week begins the second part of the 2017 exercise. It starts with encouraging sales and profits, according to the collated data of the first half.”

Picture:Facebook/El Corte Inglés