Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — H1 2022 Earnings Presentation
35 slides from Industria De Diseno Textil's earnings presentation, Sep 14, 2022
Slide 1: Interim Half Year 2022
Interim Half Year 2022 14 September 2022
Slide 2: Disclaimer
Disclaimer This document and the information contained herein does not constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, or any recommendation or advice regarding, any securities issued by the Inditex Group. This document may contain statements regarding intention
Slide 3: Very strong performance
Very strong performance
Slide 4: 1H2022: Very strong performance
1H2022: Very strong performance / Unique fashion proposition, optimised customer experience, sustainability and a focus on the talent and commitment of our people / Sales, EBITDA and net income reached historic highs / Strong sales progression in 1H2022. Initial Autumn/Winter collections very well r
Slide 5: 1H2022: Very strong performance
1H2022: Very strong performance / Strong execution of the model / Sales €14.8 billion, +24.5%. Sales positive in all key geographical areas / Highest gross margin in 7 years / The control of operating expenses has been rigorous / Net income reached €1.8 billion (+41%). Net income ex-provision reache
Slide 6: Financial Summary
Financial Summary
Slide 7: 1H2022: Very strong execution
1H2022: Very strong execution € million 1H22 1H21 22/21 / Sales, EBITDA and net income at historic highs Net sales 14,845 11,936 24.5% / Sales +24.5% Gross profit 8,594 6,907 24.5% / Healthy gross margin EBITDA 4,029 3,101 30.0% / Disciplined cost management PBT 2,340 1,643 42.5% / 1Q2022 extraordin
Slide 8: Sales
Sales € million 1H22 1H21 22/21 / Sales +24.5% to €14.8 bn. CC sales +25% Net sales 14,845 11,936 24.5% / Sales positive in all key geographical areas / Traffic and store sales grew significantly / Satisfactory online sales / At current exchange rates we expect +0.5% currency impact for FY2022 Inter
Slide 9: Global Store & Online sales breakdown in 1H2022
Global Store & Online sales breakdown in 1H2022 46% Europe ex-Spain 14% Spain 20% 20% Americas Asia & RoW Operations in 215 markets with low share in a highly fragmented sector Interim Half Year 2022 Results
Slide 10: Gross margin
Gross margin € million 1H22 1H21 22/21 / Very healthy execution Gross margin 57.9% 57.9% +2 bps / Gross profit +24.5% to €8.6 bn / Highest 1H gross margin in 7 years / Based on current information we expect stable gross margins (+/- 50bps) for FY2022 Interim Half Year 2022 Results
Slide 11: Operating efficiencies
Operating efficiencies € million 1H22 1H21 22/21 / Rigorous control of operating expenses Op. Expenses 4,550 3,786 20% / Operating expenses grew below sales growth / Including all lease charges, operating expenses grew 7 percentage points below sales growth Interim Half Year 2022 Results
Slide 12: Operating working capital increased +25%
Operating working capital increased +25% € million 1H22 1H21 / In the face of possible supply chain tensions going into 2H2022 Inditex has temporarily Inventory 3,672 2,563 accelerated Autumn/Winter inventory inflows Receivables 856 840 in order to increase product availability without any change to
Slide 13: Strong cash flow and financial condition
Strong cash flow and financial condition € million 1H22 1H21 22/21 / Strong cash generation Net cash position 9,242 8,023 15% / Net cash position up +15% to €9.2bn Interim Half Year 2022 Results
Slide 14: Concepts
Concepts 14
Slide 15: Sales by concept
Sales by concept Pull&Bear / Strong expansion continues Massimo Dutti / Store openings in 24 different markets Bershka in 1H2022 / Optimisation activities across all concepts Stradivarius Oysho Zara & Zara Home Interim Half Year 2022 Results
Slide 16: Sales by concept
Sales by concept € million 1H22 1H21 % Zara & Zara Home 10,927 8,488 29% Pull&Bear 936 786 19% Massimo Dutti 721 654 10% Bershka 1,055 919 15% Stradivarius 913 782 17% Oysho 293 305 (4%) Total 14,845 11,936 24.5% Interim Half Year 2022 Results
Slide 17: Concepts
Concepts / Store sales across all concepts have been robust / Zara very strong performance / All concepts performed well. Oysho strong comparable base Interim Half Year 2022 Results
Slide 18: Outlook
Outlook
Slide 19: Zara Woman into the night
Zara Woman into the night :
Slide 20: Zara Men Smart casual
Zara Men Smart casual
Slide 21: Zara Kids Back to school
Zara Kids Back to school
Slide 22: Zara Home A modernist escape
Zara Home A modernist escape
Slide 23: Pull&Bear The power of colour
Pull&Bear The power of colour
Slide 24: Massimo Dutti Leather skills
Massimo Dutti Leather skills
Slide 25: Bershka New metallic collection
Bershka New metallic collection
Slide 26: Stradivarius A matter of attitude
Stradivarius A matter of attitude
Slide 27: Oysho Cycling
Oysho Cycling
Slide 28: Zara Battersea to open in October (video)
Zara Battersea to open in October (vídeo)
Slide 29: Strategy
Strategy / Unique fashion proposition: Creativity, design, quality and beauty / Ongoing optimisation of customer experience / Sustainability a key part of the strategy / Focus on the talent and commitment of our people / Technology and innovation to drive future growth / Shareholding remuneration In
Slide 30: Sustainability innovation hub
Sustainability innovation hub /Investment in CIRC, a start-up focusing on the industrial scale recycling of textile products composed of multiple materials (including polyester and cotton, accounting for most of the fabrics manufactured) /Regenerative Production Landscape Collaborative 30 (RPLC) pro
Slide 31: Outlook
Outlook / Strong organic growth. Increased differentiation / Online sales to exceed 30% of total sales by 2024 / Stable gross margins / Higher returns. Lower capital intensity / Capex of €1.1 billion for 2022 in stores, online and logistics. Technology and innovation key aspects / Fully integrated m
Slide 32: Global Store & Online sales
Global Store & Online sales / Operations in 215 markets with low share in a highly fragmented sector / Organic growth & high quality openings, enlargements and refurbishments / Online to 30% of sales in 2024 / Strong global opportunity Interim Half Year 2022 Results
Slide 33: Dividends
Dividends / A dividend of €0.93 per share (+33%) approved for FY2021 / 2 November 2022: Final dividend €0.465 per share / Inditex dividend policy of 60% ordinary payout and bonus dividends remains in place / Total bonus dividend of €0.40 per share to be paid in relation to FY2022 results Interim Hal
Slide 34: Outlook 2022
Outlook 2022 / Autumn/Winter collections well received by our customers / Store and online sales in constant currency between 1 August and 11 September 2022 increased 11% versus the record period in 2021 Interim Half Year 2022 Results
Slide 35: Interim Half Year 2022
Interim Half Year 2022 14 September 2022
Industria de Diseño Textil, S.A. (Inditex) — H1 2022 Earnings Presentation on 6ix