Mango boosts profits in first results without Andic

Palau-Solità and PlegamansThe Catalan fashion company Mango earned 219 million euros last year, 27% more than in 2023, the company reported this Monday in a press conference. The group also increased its revenues, in this case by 7.6% (11.6% discounting the effects of currency exchange rates), to 3,339 million euros. This is the company's first presentation of results since the death in a mountain accident of its founder, Isak Andic, last December.

The CEO and President of Mango, Toni Ruiz, has expressed satisfaction with the evolution of the multinational: "We are very happy with the results," he said. "In a year in which some companies in the sector have shown difficulties, we have clearly emerged stronger," he added. In this sense, Mango grew last year at practically all levels. Beyond sales and profits, the company also improved its EBITDA (profit before taxes, interest and amortization) by 19% compared to 2023, to 636 million euros.

In fact, the group's position is significantly better today than in 2019, the last year before the pandemic, despite the shock that Covid represented for the retail sector worldwide. The company has tripled its EBITDA in five years and tenfold its profits, increasing its turnover by 1 billion euros. In light of these figures, the group's financial director, Margarita Salvans, explained that dividends would be distributed among shareholders - without giving details - and boasted of the group's low debt, with only about 70 million euros of debt.

In this regard, Salvans highlighted that 2024 was "the year of greatest investment in Mango's history", with 219 million euros (17% more) focused on various areas: store expansion and refurbishment; technology (especially artificial intelligence and improving the customer experience), and facilities, especially the Lliçà d'Amunt logistics centre and its main headquarters in Palau-Solità and Plegamans, in the Vallès. This investment programme has been financed mainly with own funds and the company's own cash generation.

Operationally, the good results and investments have translated into an expansion with the opening of 260 new stores, bringing the total number of Mango establishments worldwide to 2,850 (around 850 are owned and around 2,000 are franchises). In total, the group manages directly or indirectly 850,000 square meters of net commercial surface area and has set the goal of reaching one million before the end of next year. Spain, with 30 openings, has been the market in which the group has expanded the physical sales channel the most.

In total, 78% of the group's turnover comes from the foreign market. In this area, the company has highlighted the opening of twenty stores in the United States since 2023, one of them The main bets on international expansion Salvans downplayed the risks arising from the tariff war launched by US President Donald Trump and said that the company is "prepared" because in recent years it has already had to deal with the growing uncertainty in this regard.

Women's fashion remains the mainstay of Mango's business, accounting for 78% of sales. However, in the immediate future, the company's main focus is on expanding its new clothing and home products division. Currently, this line of products is already available in 33 countries through the online sales channel, but the group wants to expand it to the physical channel with a first 400-square-metre store dedicated only to the home that will open next month in Barcelona.

The group also increased its workforce by 900 people last year, up to 16,400 workers.

The question of shareholding

Ruiz began the presentation of results ceremony held on Monday with a reminder to those present: "Today is the first day that we have received people in our home since our founder passed away." He also thanked "the displays of affection" and the recognition of Andic, above all the Gold Medal of the Generalitat"It has been tough," he said in reference to the last few months. Despite Andic's sudden transfer, Ruiz has stressed the "strength of the brand" and has expressed his "deep gratitude for the trust" of the board of directors and the Andic family, who appointed him president of Mango while maintaining his position as CEO.

Following the death of the founder, Doubts have arisen about the company's shareholding situation, mainly because Andic had a son and two daughters. In 2023, Ruiz entered the company's capital with 5%, while the remaining 95% was kept under control by Andic himself. At this time, it is not yet known how the heirs will divide this majority stake - the CEO insisted that it is a matter that "is part of the strictest family privacy" - but Ruiz assured that Andic left the will "very orderly" in the family environment and that the new composition of the shareholders will be known in the coming months.

Regarding the recent Reopening of the judicial process for the accident in which Andic diedRuiz did not want to make any comments, but he did thank the "exhaustiveness of the investigation process."