The last quarter has shown that even in a very difficult business environment, we can create growth and respond quickly to a changing external environment, says Marcin Czyczerski, President of the CCC Group. Figure CCC
CCC Group, which develops CCC, HalfPrice, Eobuwie.pl or Modivo networks and platforms, earned 1.9 billion PLN in the first quarter of 2022 (February-April), an increase of about 32 percent. The company’s press release says that more than half (55%) of this amount is e-commerce.
- CCC Group’s total margin increased by about 6 ppy / y in the first quarter, reaching about 50%.
- In the first quarter, HalfPrice debuted in the 7th market, Slovakia. 16 new stores opened in Poland.
- In the first quarter, Eobuwie.pl was launched in Latvia and Austria.
- In the first quarter, CCC introduced a multi-channel gift card – available on all sales channels. On the other hand, a modernized CCC store has opened in Warsaw, where customers will find the first online zone with the Sprandi clothing collection.
– The last quarter was a time of accumulation of problems in terms of consumer purchasing power: the echoes of the next wave of the pandemic, the war in Ukraine, the unfavorable macroeconomic environment – especially high inflation and rising interest rates, which affect customer portfolios. As CCC Group, we are under their inevitable influence, but thanks to the investments made in recent years, we are more resistant to them today – comments Marcin CzyczerskiGeneral Director of the group CCC. “The last quarter has shown that even in a very difficult business environment, we are able to grow and respond quickly to a changing external environment,” he added. – Of course, we hope that the situation in the market will calm down and demand will be more stimulated. In this regard, April was a much stronger month than the first half of the quarter, and we hope that this trend will continue.
Changes in the CCC network
The CCC segment earned 790 million PLN in the last quarter, an increase of more than 40%. yy. Sales this year are 3 percent. Although lower than 3%, this is higher than the board’s revenue in the corresponding quarter of 2019 (ie not burdened by the pandemic). trading area.
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– For more than two years, we have been gradually changing CCC stores – regulating their space and making them more and more digital. This is our response to the changing expectations of our customers. We can see that this model works. Today, compared to 2019, sales per m2 are already about 30 PLN, or 6 percent higher. – Marcin Czyczerski adds.
The group’s youngest concept, HalfPrice, earned 118 million PLN in the first quarter of 2022. DeeZee’s turnover in the quarter was similar to last year’s level and amounted to 26 million PLN.
The group’s total margin was 5.9 pp.Y / y and 2.4 pp.Q. in the previous quarter. increased to a very high level with 49.2%. The increase in the group’s margin was mainly due to an improvement of about 10 percentage points in its CCC segment.
The group’s total sales revenue was about 928 million PLN (+ 50% per annum). In the past, the dynamics of expenditures have been similar to the growth rate of revenues. It should be noted that in terms of service quality, the level of SG&A costs has decreased by about 32 million PLN, which means a decrease of about 3%.
Restoration of profitability after the pandemic
– In parallel with investments in strategic development, we are consistently restoring operational profitability after the pandemic. Despite the unfavorable market environment, we have improved the transaction result by 56 million PLN per year. In the coming quarters, we will continue to create consistent growth – adds Kryspin Derejczyk, Vice President of Finance and Accounting, CCC Group.
The CCC Group ended the first quarter of 2022 with an increase of 3.4 ppy / y with a margin of 5.8% EBITDA).
MODIVO Group increases sales
In the last quarter, MODIVO Group earned 916 million PLN and sales increased by 19%. yy. In the last quarter, the MODIVO brand generated a turnover of 162 million PLN (+ 69% per annum). Meanwhile, sales of eobuwie.pl increased by about 12 percent. 753 million PLN revenue.
The group achieved a total margin of 43.5%, which means an increase of 0.4 percentage points / year. SG&A spending rose 35 percent. yoy and their dynamics have resulted in the implementation of both development projects – logistics, expansion of sales support systems, as well as activities related to the implementation of the market. In terms of GoC, the level of spending has decreased by about 9%.
– In the first quarter of 2022, MODIVO SA Group achieved a double-digit increase in revenue, despite the negative impact of the geopolitical situation and the high base for quarantine in 2021. The MODIVO sign was the fastest growing in the entire CCC. Group. At the same time, we consistently implement our proposal and technology development program. Among other things, we will soon launch a new market and a new advertising platform that will allow our partners to generate new, high-margin revenue, ”he said. Damian ZaplataPresident of the Board of MODIVO Group.
MODIVO Group generated 59 million PLN EBITDA with a margin of 6.4 percent, which is in line with the assumptions of the GO.25 strategy.
GO.25 – implementation of strategy assumptions
The first quarter of 2022 at the CCC Group is a more consistent implementation of the GO.25 business strategy assumptions published late last year.
– In accordance with GO.25, in the first quarter of 2022, we created a new, important Data & AI Hub team that uses advanced analytics solutions such as Predictive analytics, Machine Learning and AI to support sales, products and operations. management. All this is to optimize operations and more accurately diagnose the expectations of our customers – adds Carol Półtorak, Vice President of Strategy and Development, CCC Group.
CCC SA is one of the largest European companies in the footwear segment. The group has about 90 e-commerce platforms and about 1,000 stores in 29 countries under the brands CCC, eobuwie.pl, MODIVO and DeeZee.
From May 2021, the company will develop sales in the lower price segment through the network of HalfPrice stores.
CCC SA has been listed on the Warsaw Stock Exchange since 2004.