CCC recorded PLN 110 million of consolidated EBITDA (according to IFRS16) in the 1st quarter of the financial year 2022 (February-April 2022) compared to PLN 35 million of EBITDA profit a year earlier, the company said, presenting preliminary estimated data . Revenues in Q1 amounted to PLN 1,886 million compared to PLN 1,428 million a year earlier.
The operating loss was PLN 45 million in Q1. compared to PLN 101 million loss a year earlier.
The CCC Group in the first quarter of 2022 (February-April) generated PLN 1.9 billion in revenues, which means nearly 32% yoy growth. E-commerce accounted for over half of this amount (55%). The group’s gross margin increased in the first quarter by about 6 percentage points y / y, reaching the level of nearly 50%. This is the result of the consistent implementation of the GO.25 business strategy, assuming the development of the omnichannel model, product offer, logistics and a strong and close relationship with the client, the company announced.
The president of CCC, Marcin Czyczerski, points out that the past quarter was an “accumulation of challenges” in terms of the purchasing power of consumers: echoes of another wave of the pandemic, war in Ukraine, unfavorable macroeconomic environment – in particular, high inflation and rising interest rates affecting customer portfolios.
“As the CCC Group, we remain under their inevitable influence, but thanks to the investments made in recent years, we are much more resistant to them today. The last quarter has shown that even in a very difficult business environment, we are able to generate growth and quickly react to the changing external environment. [ …] Of course, we expect the market to calm down and demand more stimulation. April was a much stronger month in this respect than the first half of the quarter and we hope that this trend will continue,” said Czyczerski.
The share of online sales was 55%, thus reaching the level of PLN 1 billion (+ 16% y / y).
In the last quarter, the CCC segment generated revenues in the amount of PLN 790 million, which is an increase of over 40% y / y. Sales in the current year are 3% higher compared to the revenues generated by this sign in the corresponding quarter of 2019 (i.e. not affected by the pandemic), despite the fact that the retail space is by more than 3% smaller.
“For over two years, we have been gradually changing CCC stores – adjusting their space and making them more and more digital. This is our response to the changing expectations of customers. We can see that this model works. Today, sales per m2, compared to 2019, are higher already by about PLN 30, ie 6%,” pointed out the president.
The youngest concept of the group, HalfPrice, in the first quarter of the year. generated revenues of PLN 118 million. DeeZee’s turnover in the discussed quarter was similar to last year’s level and amounted to PLN 26 million.
The gross margin of the group increased in the previous quarter by 5.9 percentage points y / y and 2.4 percentage points q / q, reaching the level of 49.2%. The increase in the group’s margin was mainly due to its improvement y / y by almost by 10 percentage points in the CCC segment Gross profit on sales of the group amounted to nearly PLN 928 million (+ 50% y / y). The dynamics of costs in the past period was similar to the rate of revenue growth. q saw a decrease in the level of SG&A costs by approx. PLN 32 million, which translates into a decrease by approx. 3%.
“Parallel to investments in strategic development, we are gradually rebuilding operating profitability after the pandemic. Despite the unfavorable market environment, we improved the operating result by PLN 56 million y / y. In the following quarters, we will continue to consistently generate increases,” announced the vice-president for finance and accounting in the CCC Group Kryspin Derejczyk.
First quarter of the year The CCC Group ended with an EBITDA margin of 5.8%, an increase of 3.4 percentage points. y / y
In the last quarter, the Modivo Group achieved revenues of PLN 916 million, and its sales increased by 19% y / y. In the last quarter, the MODIVO sign generated a turnover of PLN 162 million (+ 69% y / y). At the same time, eobuwie.pl increased sales by approx. 12% y / y, reaching revenues of PLN 753 million.
The Group generated a gross margin of 43.5%, an increase of 0.4 percentage points y / y. SG&A costs grew at a rate of 35% y / y, and their dynamics also resulted from the implementation of development projects – expansion of logistics, sales support systems, as well as activities related to the implementation of the marketplace. In q / q terms, the level of costs decreased by approx. 9%.
“In the first quarter of 2022, the Modivo S.A. Group achieved a double-digit increase in revenues despite the adverse impact of the geopolitical situation and the high base related to the lockdowns of 2021. The MODIVO sign was the fastest growing in the entire CCC Group. At the same time, we are consistently implementing our offer and technology development program. with others, we will soon launch a marketplace and a new platform advertising for our partners, which will allow us to obtain new, high-margin revenues,” said the president of Modivo Group, Damian Zaplata.
The Modivo Group generated an EBITDA of PLN 59 million, with a margin of 6.4%, which is in line with the assumptions of the GO.25 strategy, it was also emphasized in the information.
The CCC Group is the leader of the Polish footwear retail market and one of the largest footwear manufacturers in Poland. The company has been listed on the Warsaw Stock Exchange since 2004.
Source: CCC Group and ISBnews
