First-half revenues grow 1.3% at El Corte Inglés as Ebitda improves by 14%

El Corte Inglés has posted revenues of 7.61 billion euros ($8.3bn) for the first half of the year ended August, up 1.3% on the previous year, while Ebitda improved by 14% to 386 million euros ($418m), reaching its highest level in five years.

The company, which releases its bottom line figure only at the end of the year, said in a statement that Ebitda increased on the back of improved profit margins at its retail division and a cost-saving programme.

On a comparable basis, retail sales grew 1.7% while the online business grew by double digits, according to the company, which announced that in 2020 it will launch an app to support its omnichannel strategy.

Net debt reached 3.14 billion euros ($3.4bn) at the end of the period, down by 583 million euros in the first half of 2018, driven by the company’s positive performance and the sale of non-strategic assets for 193 million euros. 

In terms of divisions, the retail business (including stores, supermarkets, gourmet spaces and Sfera) experienced a 1% increase in sales to 6.03 billion euros ($6.5bn). Gross operating profit enjoyed a surge by 17% to 272 million euros, and gross margin stood at 1.84 billion euros, up 0.7% year-on-year.

The Spanish retailer said shoes and accessories performed well during the period as it continued to revamp its own brand collections.

In October, the company announced the creation of El Corte Inglés Real Estate, a new business unit that will aim to boost a property portfolio has been valued at 17 billion euros.

The launch effectively ends the so-called Green Project, which was launched by the group to dispose of non-strategic property assets and reduce its debt pile.

The goal is to invest in the properties before putting them on the market, with plans to transform redundant offices into residential buildings to get the most out of the assets.