The pandemic represented a challenge for companies of all categories and verticals worldwide and The English Court has not been the exception, as we can see in your 2020 earnings report. Last year the company registered losses amounting to 2,945 million euros, the first in its history and as a result of the confinement for which the large chain of stores had to close its centers, in addition to the fall in the tourism sector that affected its travel business.
Despite this, the positive note is that one of the company’s divisions has shown great growth during the 2021/2021 fiscal year that ended last February: its online sales. El Corte Inglés increased sales of its eCommerce by 132%, some 1,800 million euros. From representing only 5.8% of the group’s retail sales in 2021, now e-commerce reaches 17.3% of total sales, in a year in which it recorded 760 million online visits. As another positive fact, the distribution giant has explained that your online basket is 50% higher than the purchase in store.
Group sales fell more than 30% due to the pandemic
Of course, the company has seen its fiscal year greatly affected by the pandemic, a period in which the group’s debt has increased by 560 million, standing at 3,811 million euros. These high losses are explained by the provisions made and the deterioration of some of its assets, as a result of the changes that the crisis has brought to its commercial activity.
Most of the group’s losses, about 2,500 million euros, correspond to provisions, items recorded in the accounting by the group to face possible risks arising from the current situation. Without these provisions, the group would have closed its year with a negative 445 million compared to the profit of 308 million that it presented in 2019.
«This result is mainly due to the cessation of a large part of its activity during the confinement and the subsequent closures that occurred in the autonomous communities, as well as the total absence of tourism, both national and international”, ensures the company
Speaking of your billing, the sales of El Corte Inglés were 10,432 million, which represents 31.6% less than the previous year. By segments, its commercial business (-19%) was the most affected after travel. In any case El Corte Inglés ended the year with liquidity of 3,549 million, the highest in its history, surpassing the one it presented in 2019 in which it managed to reach 2,108 million.
“In other areas of activity, it is worth noting the strength of the business model and the management of El Corte Inglés Seguros, which has allowed it to maintain its sales volume in a year as complicated as 2020″, explains the company, stating that it closed with a positive Ebitda of 141.73 millionthat is, 88% less.
«It is important that with the closure of shopping centers, restrictions and without tourism we have managed to end with positive Ebitda. In addition, the foundations of the company’s future strategy have been laid”. After what I learned in this difficult year, its future strategy will focus on continuing and improving its logistics.
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