The group The English Court achieved in the first semester of the fiscal year, until November, increase sales by 25% compared to the same period last year. The group chaired by Marta Álvarez achieved a turnover of 5,503 million euros in six complex months, due to the lack of foreign tourists and mobility restrictions derived from the pandemic. The management team of Víctor del Pozo, CEO, values the progress of the group, especially due to the increase in gross profits to 234 million, 416 million euros more than the EBITDA achieved in the previous first half (from March to August). The company believes that it has “consolidated the road to recovery with a solid start to the second half,” figures in retail sales that are close to those reached in 2019.
The strategic alliance with Mutua Madrileña promotes progress towards the transformation of El Corte Inglés into a necessary diversification that softens the impact of the commercial and tourist crisis. Retail sales reached 5,418 million euros, reaching 2019 levels except for the impact of tourism. The retail business boosted the recovery with an increase of 917 million euros, where the recovery of the fashion area stands out. The financial management of the group highlights the reduction of costs over sales of 5.6 points.
Regarding net debt, it increased to € 3,940 million due to the effect of extraordinary payments (voluntary redundancy plan for employees, large-area tax, various investment activities). Excluding these extraordinary items, the net debt will have been reduced by 213 million euros.
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The group has reported that it has implemented measures to guarantee supply over the next few months, without further specification. During the first half of the year, progress was made in transforming El Corte Inglés into what it describes as “a unique ecosystem” in which all kinds of products and services can be found, with commerce as the central axis and starting point. The strategic alliance with Grupo Mutua, which will mean a total income for El Corte Inglés of 1,105 million euros, will allow a strong reduction in debt, the development of the insurance and asset management business on a larger scale and with greater profitability, and a new boost to the Seguros El Corte Inglés brand.
The acquisition of the Sánchez Romero supermarkets is another of the initiatives aimed at promoting the sale of high-end food products, and another in the field of tourism with the merger of Viajes El Corte Inglés and Logitravel. Both will make it possible to advance the company’s strategic plan. Sicor Alarmas and Sweno Energía are other examples of this diversification. For the latter, the Group has obtained the power distribution license, although the launch of the business will remain pending the stabilization of the market situation.
Reference-www.elperiodico.com