Mango has closed the 2022 financial year with a record sales figure, up to 2,688 million euros. This is 20.3% more than in 2021 and above its previous milestone, the 2,374.4 million obtained in 2019, despite the complexities derived from the invasion of Ukraine and the cessation of direct operations in Russia. , one of its top five pre-war markets. The company founded by Isak Andic in Barcelona also earns more, with a profit of 81 million euros, its best result since 2013 -see graph-.
The textile group thus consolidates the strategic turn that Toni Ruiz, CEO, has promoted since his arrival at the company in 2015. Andic recruited Ruiz, then a director of Leroy Merlyn, with the aim of refloating the banner after a period of growth at excessive speed that led to a bulky debt. Eight years later, and after going through a pandemic and a war that have impacted the global economy, Mango is facing a new stage, Ruiz highlighted in the presentation of results this Thursday at the Palau-Solità i Plegamans headquarters. "The figures support our model; we have made a great improvement in the product, we have recovered our DNA", stressed the CEO together with Margarita Salvans, financial director, and César de Vicente, global retail director.
The net debt amounted to 82 million euros in 2022 (in 2021 it was negative eight million, having more cash than debt). "This is a healthy figure, one of the lowest in the sector," commented Salvans. The increase compared to the previous year is due to the expansion and investment process that the group is carrying out, he explained. Just six years earlier, Mango's debt reached 617.6 million euros, while losing money. The company has also returned the entirety of the ICO credit it requested in 2020.
The situation is different now and the increase in income has been influenced by the international expansion resumed by the group, with a strong commitment to the physical store, as well as the increase in prices derived from a higher quality of garments. "The mix is not comparable because we have raised the quality", has qualified Ruiz. All business lines improve results, with the women's fashion segment contributing 82% of turnover. For the first time, this segment exceeds 2,000 million euros in revenue. The men's line has grown by 30%, close to 300 million euros, while the children's line has exceeded 200 million euros. The household linen segment (Home) has exceeded five million euros in turnover in its first year of life. The online business contributes 36% of the income, with 960 million euros.
Mango's engine continues to be its network of physical stores, both owned and franchised. Last year, it reactivated its entire commercial offer after the restrictions of the pandemic, with a total of 1,566 points of sale and 119 net openings, ten of them in Spain. Among them, the inauguration of a flag ship on Fifth Avenue in New York stands out, the starting point of the ambitious expansion of the textile group in the United States. The firm has set the country as one of its priority markets, and plans to invest 100 million euros there in three years to expand its network of establishments, deploying itself through the so-called Sun Belt, which covers the southern part of the country. from coast to coast, with the objective of reaching 40 establishments by the end of 2024 and the aspiration of entering the top 5 countries by income.
The other great point of growth is India, a market in which Mango has entered with a partner, Myntra, to increase its presence. Spain, with 22% of the total turnover, continues to be its main market, followed by France or Italy (it is present in 115 countries). As for Russia, Mango ceded its own stores to the franchisees and ceased its own operations. The Mango sign continues, yes, in Russia through the 90 stores that the franchisees maintain, although the company is not in charge of providing them with merchandise. The cancellation of direct operations in Russia has had a negative impact on the result of about 20 million euros.
In total, the company invested 107 million euros in 2022 and this year it expects to exceed the figure, as well as the number of net openings. A growth that could bring them closer to 3,000 million in turnover in 2023. "Hopefully we can talk about it," Ruiz said. Among his plans, the inauguration of the Mango campus also stands out, the renovated headquarters in which he will invest 42 million euros and which he hopes to launch in 2024.
