/ In 9M2022, Inditex's fully integrated model maintained a very strong operating performance

/ Óscar García Maceiras, CEO, said: "In the current challenging context, these results clearly reflect the strength of our unique business model: fashionable collections, an appealing shopping experience and a team highly committed to achieving achieve profitable and more sustainable growth".

/ Sales reached €23.1 billion (+19% versus 9M2021). Sales in constant currency grew 20%. Sales were positive in all geographic areas

/ Over the 9M2022 traffic and store sales increased markedly. Key to this was store differentiation. Online sales continue progressing satisfactorily and were above the record figures of 9M2021

/ In 9M2022, the execution of the business model was very strong. Gross profit increased 19% to €13.5 billion. The gross margin reached 58.7%

/ The control of operating expenses has been rigorous. Operating expenses increased by 17%, below sales growth

/ In 9M2022, EBITDA increased 20% to €6.5 billion and EBIT 27% to €4.2 billion. PBT increased 25% to €4.0 billion

/ Net income in 9M2022 increased 24% to €3.1 billion

/ Given the strong execution of the business model, cash from operations has grown significantly. The net cash position was €10 billion

/ The FY2022 final dividend of €0.465 per share was paid on 2 November 2022

/ Store and online sales in constant currency between 1 November and 8 December 2022 increased 12% versus the same period in 2021



Interim Nine Month 2022: Strong execution

In 9M2022, Inditex's fully integrated model had a very strong operating performance.

Inditex continues to focus on four key areas: a unique product proposition, enhancing the customer experience, sustainability, and the talent and commitment of our people.

The Autumn/Winter collections were very well received by our customers. In the 9M2022 sales reached €23.1 billion, +19%. Sales in constant currencies grew 20%. Sales were positive in all geographic areas.

Over 9M2022, Inditex's traffic and store sales increased markedly. Key to this was store differentiation. Online sales continue progressing satisfactorily and were above the record figures of 9M2021.

In 9M2022, openings have been carried out in 30 markets. At the end of the period, Inditex operated 6,307 stores. A list of total stores by concept is included in Annex I.

In 9M2022, the execution of the business model was very strong. Gross profit increased 19% to €13.5 billion. The gross margin reached 58.7%.

The control of operating expenses has been rigorous. Operating expenses increased by 17%, below sales growth.

In 9M2022, EBITDA increased 20% to €6.5 billion. A charge of €14 million was recorded in 3Q2022 in addition to the previously announced extraordinary charge of €216 million recorded in the 1Q2022 accounts under Other results. Inditex estimates that this charge sufficiently covers the impact of the termination of the Group's business activities in the Russian Federation.

EBIT increased 27% to €4.2 billion and PBT increased 25% to €4.0 billion.

Annex 2 includes a breakdown of financial results.

The tax rate for 9M2022 is the best estimate for FY2022 according to current information.

Net income in 9M2022 increased 24% to €3.1 billion.

Given the strong execution of the business model, cash from operations has grown significantly. The net cash position was €10 billion. Inditex paid €1.4 billion (€0.465 per share) on 2 November 2022 as final dividend for FY2021. On 2 May 2022 Inditex paid a dividend of €0.465 per share.



Million Euros 31 october 2022 31 october 2021
Cash & cash equivalents 5,526 8,720
Short term investments 3,471 855
Current financial debt (17) (5)
Non current financial debt (0) (1)
Net financial cash (debt) 9,980 9,569
Inditex temporarily accelerated inventory inflows going into 2022 in the face of possible supply chain tensions. Inventory as of 31 October 2022 increased by 27%. The Autumn/Winter inventory is considered to be of high quality. As of 8 December 2022, inventory levels were 15% higher.



Million Euros 31 october 2022 31 october 2021
Inventories 4,650 3,650
Receivables 978 909
Payables (9,235) (8,104)
Opening working capital (3,606) (3,545)
FY2022 Outlook

Inditex continues to see strong growth opportunities. Our key priorities are to continually improve the product proposition, to enhance the customer experience, to maintain our focus on sustainability and to preserve the talent and commitment of our people. Prioritising these areas will drive long-term organic growth.

The flexibility and responsiveness of the business in conjunction with in-season proximity sourcing allows a swift reaction to fashion trends and results in a unique market position. Our fully integrated business model has great growth potential.

The future expansion of the Group is underpinned by investment in our stores, advances made to the online sales channel and improvements to the logistic platforms with a

clear focus on innovation, technology and sustainability. Online sales are expected to exceed 30% of total sales by 2024.

We estimate ordinary capital expenditure in 2022 of around €1.1 billion.

At current exchange rates Inditex expects a neutral currency impact on sales in FY2022.

Based on current information, Inditex expects a stable gross margin (+/-50 bps) for FY2022.

Store and online sales in constant currency between 1 November and 8 December 2022 increased 12% versus the same period in 2021.

The results for FY2022 (1 February - 31 January) will be published on 15 March 2023.



Sustainability

Sustainability is a key part of Inditex's strategy. As per the Sustainability Roadmap Goals, Inditex is on track to deliver upon all of the targets set for 2022, 2023 and 2025, with a particular focus on two pillars: innovation through the Sustainability Innovation Hub (SIH) and circularity.

On 30 November 2022, Inditex launched a new detergent, The Laundry by Zara Home, which is available in stores and online platforms in more than 25 markets. Developed jointly by Inditex and BASF, the innovative solution reduces microfibres released by up to 80%. The detergent's formula features a combination of efficient ingredients particularly suitable for washing at low temperatures and thereby reduces its carbon footprint and extends the life of the textiles. The developed solution can also be adjusted to enable the use of this technology by other detergent manufacturers and shows the effectiveness of cross-industry collaboration.

On 3 November 2022, Zara launched "Zara Pre-Owned" in the United Kingdom, a pioneering integrated platform available through Zara stores, Zara.com and its mobile app. The initiative is a new step in our approach to circularity by focusing on repair, resale & donation. Through this platform, customers will be able to extend the life cycle of used clothing and will contribute to the reduction of waste.

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INDITEX - Industria de Diseño Textil SA published this content on 14 December 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 December 2022 08:05:04 UTC.