The economic results of the textile company Mango have recovered to pre-pandemic levels, even surpassing them in terms of profits. The Palau-solità i Plegamans firm closed the 2021 fiscal year with a profit of 67 million euros, a figure that triples the 21 million achieved in 2019, and represents one of the highest profits obtained in the last decade.
Last year's profits leave behind the losses of 110 million recorded in 2020 due to the pandemic. Likewise, in 2021, the pre-tax profit stood at 82 million euros, compared to the 41 million achieved in 2019, with the gross operating profit (EBITDA) at 423 million, double that of the 2020 fiscal year and the highest for the company since 2014.
The evolution of the textile company has also been favorable in terms of turnover. At the close of 2021, with a presence in more than 110 markets worldwide with 2,447 points of sale, the business amounted to 2,234 million euros, 21.3% more than in 2020, and is close to 2019 sales, when the company achieved its record, with 2,374 million euros. 79% of the total corresponded to international markets, while the Spanish market represents 21% of the business.
Gross operating profit rose to 423 million, the highest since 2014As reported by the company, in the first four months of last year, sales were marked by restrictions derived from the pandemic in markets such as France, Germany, and the United Kingdom, while, in the fourth quarter of the fiscal year, the company already surpassed the sales of the fourth quarter of 2019.
Regarding online sales, which are operational in 85 markets worldwide, the business generated by the brand reached 942 million euros, an increase of 23%, and its weight in total turnover remained at 42%.
The CEO of Mango, Toni Ruiz, highlighted that these results show the company's "optimal position" to face the future, despite 2021 being again full of "challenges and uncertainties." The company highlighted that, last December, it returned 120 million of the credit line requested at the beginning of the pandemic to the Official Credit Institute (ICO), an amount that represents 50% of the 240 million that were requested in the spring of 2020 and which the company has not needed to use.
Permanent activity
In the last fiscal year, Mango invested 45 million euros, 63.6% more than the previous year, resources that were mostly allocated to accelerating the digitalization process and remodeling stores to adapt them to the new image.
Likewise, it maintained its activity with new openings up to 226 new establishments, among other points, with a strong commitment to the United States, one of the company's strategic markets, with the opening of four new stores. However, the total sales area of the group's physical stores remained stable at around 794,700 square meters.
The company has stated that following the Russian invasion of Ukraine, it has temporarily suspended its operations in Russia and is analyzing the impact that the conflict will have on its business this year.