Zara Carries The Weight of The 894,4 Million of Dividend of Amancio Ortega

Zara Carries The Weight of The 894,4 Million of Dividend of Amancio Ortega

Amancio Ortega, first richest man of Spain and third in the world, according to the latest Forbes list, gave way to Pablo Isla as new Chairman of Inditex in July 2011 but the founder of the textile Empire continues to have control of the company with 59,294% shareholding. This shareholding generates per year 894,4 million euros only in dividends from Inditex, a number after which Zara carry the weight with much difference from the rest of the Group’s brands.

The power of Zara

Inditex continues with Zara as main leading brand, 3,071 million euros in EBIT (‘Earnings before interest and taxes’, profit before interest and taxes) which the company attained in 2013 Zara 2,089 million turnover. The 894,4 million euros in dividends from Amancio Ortega leave most of Zara.

In the second place, very far away, it would be Massimo Dutti with an EBIT of 247 million, followed closely by Bershka with 241 million, that closes the top 3. In the last post in the table it would be Uterqüe with a profit of 8 million euros negative.

Even if we add the EBIT of all brands of Inditex, with the exception of Zara, we would have 983 million euros. 1.106 million euros less than the results of the leader of the Group.

Inditex earned a net profit of EUR 2,377 million in its last fiscal year (from February 1, 2013 to 31 January 2014), 1% more than in 2012. Achieving an EBIT of 3.071 billion euros, one 1% less than in the last year.

A dividend that continues to rise

On July 15 Inditex at its shareholders meeting approved a new rise in the dividend. The Board of Directors of Inditex proposed the payment of a dividend of EUR 2.42 per share, 10 percent more than in 2013. This dividend is distributed in two payments. 1.21 euros per share is paid in May and yesterday Monday November 3 was paid the remainder: 1.21 euros per share.

Inditex conducted a stock split on July 28 of this year (each action was divided into five) so the dividend was also divided to 0,484 euros. On Monday had to pay 0,242 euros per share.

(Data: Inditex)

Inditex has five consecutive years raising the dividend that distributed among its shareholders. In 2009 the total delivered by action was 0,240 euros (gross) and now it has already reached 0,484 euros. In five years, Inditex has doubled its dividend.

Amancio Ortega in Jezebel

  • Amancio Ortega is the third billionaire in the world with 57 billion (and Zara online sweeps)
  • Fashion is billionaire in Forbes
  • Why is Amancio Ortega the fifth of the world’s richest man?

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