Mango 2022 profit up, turnover crosses 2.7 billion euros
Mango closed 2022 with a pre-tax profit of 103.3 million euros, up 26.2 percent, while net profit was 81 million euros, an increase of 20.9 percent compared to 2021.
The company’s turnover reached 2.688 billion euros, the highest in the company’s history and 20.3 percent more than in the previous year and 13.2 percent compared to 2019.
Commenting on the results, Toni Ruiz, Mango’s chief executive officer, 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. 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.”
Mango Woman continues its strong growth momentum
During the financial year, the company witnessed strong growth in the physical channel, driven by the full resumption of store activity and 119 net store openings, closing 2022 with a total of 2,566 stores.
The company said in a release that Mango Woman remains the driver of the group’s sales, accounting for 82 percent of total turnover, while Man with an increase of 30 percent and Kids with a growth of 18 percent evolved strongly during the year.
Woman sales exceeded 2 billion euros for the first time in history, while Man sales grew by 30 percent and were 300 million euros. Kids, Mango’s children’s line, continued to grow and increased its turnover by 18 percent to over 200 million euros, including the Teen business. Home more than doubled in size, with a turnover in excess of five million euros.
Mango’s online turnover was 960 million euros compared to 942 million in 2021, representing 36 percent of the total company turnover. At the end of 2022, Mango operated online in 90 markets. In 2023 financial year, the company plans taking the online business to over 20 new markets during the first half of the year, above all in the continent of Africa and in countries such as Brazil, where the company has signed an agreement with the local partner Dafiti, part of the Global Fashion Group (GFG).
EBITDA for the year was 436.62 million euros, fourteen million euros higher than the figure posted in 2021, while gross profit was 56.9 percent, compared to 58.2 percent in 2021. The company added that the cancellation of direct operations in Russia had a negative impact of approximately 20 million euros on the result, due to the losses arising from store closures and the devaluation of the ruble.
Mango sets sustainability goals, to open new headquarters in 2023
As part of its sustainability commitment in 2022, Mango signed a finance agreement linked to ESG criteria. In December, the brand presented its new sustainability strategy until 2030 with new goals and more demanding measuring systems.
The company further said that it is currently completing the enlargement of its global distribution logistics centre, located in Lliçà d’Amunt (Barcelona), in order to manage its entire physical store and online stock operations jointly. With the enlargement, which will go into operation in the first half of the year, the centre will increase its capacity to handle garments by up to an extra 10,000 garments per hour, to 85,000 garments per hour.
Mango is also in the process of constructing its new company headquarters, called Mango Campus, which is planned to open next year. The project envisages the creation of a pioneering office space for over 2,200 employees with wellness areas, a gymnasium, various showrooms and pilot stores, among other facilities. In total, the project will require an investment of 42 million euros.