Mango beats records and closes 2022 with its highest turnover to date
For MangoIsak Andic
“We are very proud of the outcome of 2022. Not only because of the figures recorded, but also because we have successfully overcome major challenges. We have invested larger sums than ever before and recorded all-time record sales, having managed to overcome complicated circumstances,” said Toni Ruiz, CEO of Mango, optimistically at a press conference announcing the company’s financial results.
Mango’s online sales represent 36% of the company’s total sales and have generated 960 million euros in turnover in 2022, compared to 942 million euros in 2021. At the end of the year, Mango operates through its digital channel in 90 markets and intends for this business to reach 20 new regions in the first half of 2023.
Spain accounted for 22% of Mango’s total turnover, while the remaining 78% was generated by the other international markets in which the company operates. Mango also highlighted its strong performance in key markets such as in France, the United Kingdom, Italy, the United States and India.
Womenswear continued to be Mango’s most profitable category, accounting for 82% of total turnover. In 2022, the category exceeded 2 billion euros in sales for the first time in the history of the company. Meanwhile, Mango Man grew by 30% to 300 million euros in sales while the brand’s kids and teen lines increased their turnover by 18% to 200 million euros. After launching a year ago, Mango Home has doubled in size, reaching 5 million euros in turnover.
Highest annual profit in a decade
In addition to this growth in turnover, the Spanish company also increased its profitability and recorded its best figures in 10 years. While gross profit increased by 26.2% to 103.3 million euros, net profit stood at 81.1 million euros, 20.9% higher than the figure recorded in 2021 and four times the net profit recorded before the pandemic. Gross margin stood at 56.9%, compared to 58.2% in the previous year.
Last year’s Ebitda rose to 436.6 million euros, 14 million euros more than the figure achieved a year earlier. As detailed by the company during the press conference, this result was affected by “tough macroeconomic and geopolitical conditions”, ranging from the outbreak of war and the suspension of operations in Russia to the impact of inflation and the appreciation of the US dollar.
The suspension of direct operations in Russia has had a negative impact on the company’s results of “approximately” 20 million euros, caused by “losses arising from shop closures, the devaluation of the rouble and the suspension of operations”. As of today, Mango’s 120 shops in Russia, made up of 55 directly operated stores and 65 franchises, are now fully controlled by its local franchisees.
During the last financial year, the company’s net financial debt amounted to 82 million euros, compared to a negative 8 million euros in 2021.