Mango reduces losses by 45% in 2017

Barcelona-based fashion brand Mango managed to reduce its losses by 45% in fiscal 2017, bringing them down to 33 million euros, compared to the previous year's 61 million, according to a release published by the company. 

The group's turnover, however, totalled 2.19 billion euros, a 2.9% reduction compared to the 2.26 billion reported in 2016, while the company's EBITDA rose 50% to 115 million euros.

The company explained that the year was divided into two very different halves: in the first, EBITDA showed noticeable improvements compared to the previous year, while in the second, during which a number of the company's principal markets were affected by high temperatures, growth was more moderate. 

According to Mango's executive VP Daniel López, if sales in the second half of the year had followed the same trajectory as those in the first, "the group would already be well on its way to profitability."

"We believe we will continue to improve in 2018," he added, pointing out that the company's total sales have been experiencing very positive progression, with sustained growth in the last five months. 

In 2017, Mango implemented a restructuring programme that resulted in a solid reduction in its net debt. On December 31st, the company's debt had decreased by 33%, dropping from 617 million to 415 million, a fact which substantially improves the group's financial standing.

Breaking sales down by region, Mango's international operations accounted for 77% of revenue, while Spain made up the remaining 23%. 

Online sales also saw accelerated growth, increasing 15.4% to reach 339.2 million euros, 15.5% of total revenue. The company now predicts that this channel will account for 20% of total revenue in 2019, an objective originally set for the end of 2020. 

Mango sells online in 83 countries and has plans to expand this service to Iran and Ukraine later this year. 

The company's investments reached 45 million euros in 2017, with most of this going towards improving its technological systems. Mango will channel a further 30 million euros into its digital transformation over the course of this year, along with another 20 million into other projects. 

The company finished 2017 with 211 megastores (locations that measure over 1,100 square metres), 20 of which were opened last year, leading to a total of 2,190 stores in all, spread over 110 countries. 

At the end of last year, franchised locations represented 55% of the retail chain's points of sale and the company plans to continue with this model this year, opening a further 45,000 square metres through franchise locations around the globe.