Mango welcomes record turnover of €2.7bn in FY22
As well as a major growth in sales the group also reported a ‘significant’ increase in profitability, though business was in part affected by the cancellation of its operations in Russia
Mango has welcomed record sales in 2022, with turnover reaching €2.7bn (£2.4bn), the highest in the company’s history and 20.3% higher than the prior year. This was also 13.2% higher than 2019, when the company last achieved a record turnover.
As well as a major growth in sales the group also reported a “significant” increase in profitability. Pre-tax profit rose by 26.2% to €103.3m (£91.5m), while net profit hit €81m (£72m) euros, an increase of 20.9% compared to 2021 and four times its pre-pandemic net profit.
Elsewhere, EBITDA was €437m (£387m), €14m (£12m) higher than FY21. This result was said to be influenced by “challenging” macroeconomic and geopolitical conditions, including the impact of the war in Ukraine and the suspension of Mango operations in Russia, as well as high inflation and the rise in the dollar.
Mango said the cancellation of direct operations in Russia had a negative impact of approximately €20m (£17.7m) on its final result, largely due to the losses arising from store closures and the devaluation of the Rouble.
Nonetheless, the company witnessed strong growth in its physical channels over the year, explained by the full resumption of store activity and 119 net store openings, with the group closing 2022 with a total of 2,566 stores.
Investment during the year totalled €107m (£95m), more than double the figure for 2021, with the group’s main focus on technology and logistics, in addition to facilities and stores.
As part of its sustainability commitment, for the first time in its history Mango also signed a refinancing agreement linked to ESG criteria. Last December, it presented its new sustainability strategy until 2030, with new goals and “more demanding” measuring systems.
Toni Ruiz, Mango’s CEO, said: “We have closed what is probably one of Mango’s best years, overcoming complex market circumstances and committing to strong investments with a future vision and ambition.
“At Mango, we have consolidated ourselves as one of Europe’s leading fashion groups. We have demonstrated the validity and robustness of our business model based on a unique ecosystem of channels and partners. In the last few years, we have recovered our essence, with unique design as a starting point and innovation as a core value in all the departments of the company.”
