Industria De Diseno Textil, S.a. · BME:ITX
Industria De Diseno Textil — Inditex — H1 2023 Earnings Presentation
45 slides from Industria De Diseno Textil's earnings presentation, Sep 13, 2023
Slide 1: Interim Half Year 2023
Interim Half Year 2023 13 September 2023 Interim Half Year 2023
Slide 2: Disclaimer
Disclaimer Neither this document nor the information contained herein constitute an offer to sell, exchange or buy, or the solicitation of an offer to buy, to sell or exchange, or any recommendation or advice regarding any securities issued by the Inditex Group. This document may contain statements
Slide 3: To the next level
To the next level Interim Half Year 2023
Slide 4: 1H2023: Strong growth and execution continues
1H2023: Strong growth and execution continues / Strong operating performance continues due to the creativity of the teams and the execution of the fully integrated business model / Unique fashion proposition, optimised customer experience, sustainability and a focus on the talent and commitment of o
Slide 5: 1H2023: Outstanding performance
1H2023: Outstanding performance / Sales +16.6% in constant currency, with strong growth both in stores and online / Sales positive in all geographical areas and in all concepts 5 Interim Half Year 2023
Slide 6: To the next level
To the next level / Global growth opportunities / Operations in 213 markets with low market share in a highly fragmented sector / Increased differentiation 6 Interim Half Year 2023
Slide 7: Financial summary
Financial summary Interim Half Year 2023
Slide 8: 1H2023: Very strong execution
1H2023: Very strong execution € million 1H23 1H22* 23/22 / Strong sales growth Net sales 16,851 14,845 13.5% / Healthy gross margin Gross profit 9,801 8,594 14.1% / Disciplined cost management. Operating leverage EBITDA 4,663 4,029 15.7% / 15.7% growth in EBITDA PBT 3,252 2,340 39.0% / 40.1% growth
Slide 9: Sales
Sales € million 1H23 1H22 23/22 / Sales €16.8 billion. CC sales +16.6% Net sales 16,851 14,845 13.5% / Strong growth both in stores and online / Sales positive in all geographical areas and all concepts / At current exchange rates we expect a currency impact on sales around -3.5% for FY2023 9 Interi
Slide 10: Global Store & Online sales breakdown in 1H2023
Global Store & Online sales breakdown in 1H2023 47.8% Europe ex-Spain 14.4% Spain 19.4% 18.4% Americas Asia & RoW Operations in 213 markets with low share in a highly fragmented sector Strong growth across the board Interim Half Year 2023
Slide 11: Gross profit
Gross profit € million 1H23 1H22 23/22 / Very healthy execution Gross profit 9,801 8,594 14.1% / Gross margin 58.2% (+27bps) 11 Interim Half Year 2023
Slide 12: Operating efficiencies
Operating efficiencies € million 1H23 1H22 23/22 / Rigorous control of operating expenses Op. Expenses 5,116 4,550 12.5% / Operating expenses grew below sales growth / Including all lease charges, operating expenses grew 220 basis points below sales growth 12 Interim Half Year 2023
Slide 13: Working capital and net cash position
Working capital and net cash position € million 1H23 1H22 / Robust operating performance Inventory 3,420 3,672 / Normalisation in supply chain conditions. 1H2023 inventory -6.9% vs 1H2022 Receivables 1,012 856 / Inventory is considered of high quality Payables (9.140) (8,494) / Net cash position €10
Slide 14: Strong Cash Flow
Strong Cash Flow* € million 1H23 1H22 / Funds from operations increased 35.4% Funds from Operations 3,416 2,524 / Cash from operations increased Change in working capital (245) (509) 57.4% Cash from Operations 3,171 2,015 Capital expenditure (808) (672) Free Cash Flow 2,363 1,343 * Cash lease paymen
Slide 15: Concepts
Concepts Interim Half Year 2023
Slide 16: Concepts
Concepts / Sales across all concepts have been robust / Zara very strong performance / All concepts performed well Interim Interim Half Half YearYear 2023 2022 Results
Slide 17: Sales by concept
Sales by concept / Focused expansion continues / Store openings in 20 different markets in 1H2023 / Optimisation activities across all concepts drive strong sales growth Zara & Zara Home Interim Half Year 2023
Slide 18: Sales by concept
Sales by concept € million 1H23 1H22 23/22 Zara & Zara Home 12,362 10,927 13.1% Pull&Bear 1,042 936 11.4% Massimo Dutti 842 721 16.8% Bershka 1,184 1,055 12.3% Stradivarius 1,075 913 17.7% Oysho 346 293 18.3% Total 16,851 14,845 13.5% 18 Interim Half Year 2023
Slide 19: To the next level
To the next level Interim Half Year 2023
Slide 20: Unique fashion proposition
Unique fashion proposition / Creativity, innovation, design and quality Interim Half Year 2023
Slide 21: Zara's The Steven Meisel New York Collection
Zara’s The Steven Meisel New York Collection 21 Interim Half Year 2023
Slide 22: Zara Man Origins
Zara Man Origins 22 Interim Half Year 2023
Slide 23: Zara Kids Autumn collection
Zara Kids Autumn collection 23 Interim Half Year 2023
Slide 24: Zara Home Stripes & Overtones
Zara Home Stripes & Overtones 24 Interim Half Year 2023
Slide 25: Pull&Bear Pacific Republic
Pull&Bear Pacific Republic Interim Half Year 2023
Slide 26: Massimo Dutti Studio
Massimo Dutti Studio Interim Half Year 2023
Slide 27: Bershka Denim
Bershka Denim 27 Interim Half Year 2023
Slide 28: Stradivarius AW23
Stradivarius AW23 28 Interim Half Year 2023
Slide 29: Oysho Training
Oysho Training 29 Interim Half Year 2023
Slide 30: New Zara store design
New Zara store design 30 Interim Half Year 2023
Slide 31: Zara Paris Hotel de Ville
Zara Paris Hotel de Ville 31 Interim Half Year 2023
Slide 32: Zara Rotterdam Coolsingel
32 Zara Rotterdam Coolsingel Interim Half Year 2023
Slide 33: Zara Dubai Mall of the Emirates
Zara Dubai Mall of the Emirates 33 Interim Half Year 2023
Slide 34: Zara Sao Paulo Patio Higienópolis
Zara Sao Paulo Patio Higienópolis 34 Interim Half Year 2023
Slide 35: Zara Shenyang Joy City
Zara Shenyang Joy City 35 Interim Half Year 2023
Slide 36: Bershka Milan Vittorio Emanuele
Bershka Milan Vittorio Emanuele 36 Interim Half Year 2023
Slide 37: Stradivarius Barcelona Paseo de Gracia
Stradivarius Barcelona Paseo de Gracia 37 Interim Half Year 2023
Slide 38: Roll-out of new self check-out and security technology
Roll-out of new self check-out and security technology 38 Interim Half Year 2023
Slide 39: AGM: New sustainability targets
AGM: New sustainability targets / 2025 Circularity service like Zara Pre-Owned in key markets 3 million people in supply chain included in the Worker at the Center strategy, promoting advances in social dialogue, living wages, health, resilience and respect / 2030 Reduce emissions by more than 50% U
Slide 40: Zara Pre-owned launched in France on 7 September
Zara Pre-owned launched in France on 7 September 40 Interim Half Year 2023
Slide 41: People: Talent development
People: Talent development / Continue to promote the talent and commitment of our teams to reinforce our attractiveness as a benchmark employer / Sustainable Fashion School (SFS) a space dedicated to training and innovation / Academic programme in textile processing for employees in conjunction with
Slide 42: Outlook 2023
Outlook 2023 / Increasing sales productivity in stores and online / Inditex expects positive space contribution in 2023 / Stable gross margin (+/-50bps) / Ordinary capital expenditure of around €1.6 billion 42 Interim Half Year 2023
Slide 43: 29% dividend increase
29% dividend increase / Attractive and predictable dividend policy / Final 2022 dividend to be paid on 2 November 2023: €0.60 per share (€0.196 ordinary + €0.404 bonus) 43 Interim Half Year 2023
Slide 44: 3Q2023 / Autumn/Winter collections continue to be very well received
3Q2023 / Autumn/Winter collections continue to be very well received / Store&Online sales in CC between 1 August and 11 September grew +14% 44 Interim Half Year 2023
Slide 45: Interim Half Year 2023
Interim Half Year 2023 13 September 2023 Interim Half Year 2023