CCC with 2 billion zlotys of turnover after the first quarter. Share of e-commerce revenue down year-over-year

  • CCC Group’s online sales amounted to PLN 1 billion in the first quarter (+16% year-on-year).
  • The Group is continuing its efforts to further increase the share of online sales, in line with the GO.25 strategy.
  • The youngest concept of the group, HalfPrice, generated revenues of PLN 118 million in the first quarter of 2022. DeeZee’s turnover in the quarter in question was similar to last year and amounted to 26 million PLN.
  • MODIVO Group achieved a turnover of PLN 916 million and its sales increased by 19% year-on-year.
  • CCC Group revenues in the first quarter of 2021 amounted to PLN 1,428 million.
    The share of online revenues in Group sales during this period was 63% (the same as the previous year).

PLN 1.9 billion in CCC sales

CCC Group in the first quarter of 2022 (February-April) generated PLN 1.9 billion in revenue, representing almost 32% year-on-year growth. E-commerce accounted for more than half of this amount (55%). The Group’s gross margin increased in the first quarter by around 6 pp y/y, reaching the level of almost 50%. This is the result of the consistent implementation of the GO.25 business strategy, assuming the development of the omnichannel model, product offering, logistics as well as a strong and close relationship with the customer.

– The past quarter has been an accumulation of challenges in terms of consumer purchasing power: echoes of the next wave of the pandemic, war in Ukraine, unfavorable macroeconomic environment – notably, high inflation and rising interest rates affecting customer portfolios. As 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 – said Marcin Czyczerski, Chairman of the Management Board of CCC Group. – Of course, we are counting on an easing of the market situation and a greater stimulation of demand. April was a much stronger month in this regard than the first half of the quarter and we expect this trend to continue.

The CCC segment generated revenues of PLN 790 million in the last quarter, an increase of more than 40% year-on-year. Sales for the current year are 3% higher than the revenues generated by this banner in the corresponding quarter of 2019 (i.e. not affected by the pandemic), despite the fact that the retail space is more than 3% smaller.

For more than two years, we have been gradually changing the CCC stores – adjusting their space and making them more and more digital. It is our response to the changing expectations of our customers. We can see that this model works. Today, sales per m2, compared to 2019, are already higher by about 30 PLN, or 6% – adds Marcin Czyczerski.

HalfPrice with PLN 118 million in sales

The youngest concept of the group, HalfPrice, generated revenues of PLN 118 million in the first quarter of 2022. DeeZee’s turnover in the quarter in question was similar to last year and amounted to 26 million PLN.

The Group’s gross margin increased in the previous quarter by 5.9pp. Y/y and 2.4pp. Qo., reaching a very high level of 49.2%. The increase in the Group’s margin is mainly due to its year-over-year improvement of almost 10 percentage points in the CCC segment. The gross margin on Group sales amounted to nearly PLN 928 million (+50% year-on-year). Cost dynamics over the past period were similar to the revenue growth rate. It should be noted that in terms of QoC, the level of SG&A fees decreased by approximately PLN 32 million, which translates into a decrease of approximately 3%.

– Along with strategic development investments, we are successively rebuilding operational profitability after the pandemic. Despite the unfavorable market environment, we improved our operating result by PLN 56 million year-on-year. In the coming quarters, we will continue to generate increases steadily – adds Kryspin Derejczyk, Vice Chairman of the Board of Directors for Finance and Accounting of the CCC Group.

In the first quarter of 2022, CCC Group ended with an EBITDA margin of 5.8%, an increase of 3.4 pp y/y).

MODIVO Group

In the last quarter, the MODIVO Group achieved a turnover of PLN 916 million and its sales increased by 19% year-on-year. In the last quarter, the MODIVO brand generated a turnover of PLN 162 million (+69% year-on-year). At the same time, eobuwie.pl increased its sales by around 12% year-on-year, reaching revenues of PLN 753 million.

The Group generated a gross margin of 43.5%, up 0.4 pp y/y. SG&A expenses increased at a rate of 35% y/y, and their momentum also resulted from the implementation of development projects – expansion of logistics, sales support systems, as well as related activities to the establishment of the marketplace. In terms of QoC, the level of costs decreased by around 9%.

– In the first quarter of 2022, the MODIVO SA Group achieved double-digit revenue growth despite the unfavorable impact of the geopolitical situation and the high base linked to the 2021 lockdowns. The MODIVO brand experienced growth the fastest of all the CCC Grouper. At the same time, we are constantly implementing our offer and our technological development program. Among other things, we will soon launch a marketplace and a new advertising platform for our partners, which will allow us to generate new high-margin revenues, said Damian Zaplata, Chairman of the Management Board of the MODIVO Group.

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.

GO.25

The first quarter of 2022 in the CCC Group is the continuation of the implementation of the assumptions of the commercial strategy GO.25, published at the end of last year. The most important of them are:

Development of the sign: HalfPrice entered the 7th market, that is to say in Slovakia. 16 new stores were opened in Poland. Eobuwie.pl started operations in Latvia and Austria.

Omnichannel development: CCC introduced an omnichannel gift card – available across all sales channels. On the other hand, a recently modernized showroom of this brand has been opened in Warsaw, where customers will find the first online area with a Sprandi clothing collection.
Product development: The CCC Group started the spring-summer 22 season by expanding its diversified fashion offer with the launch of new own brands: SIMPLE, Americanos and Togoshi. They are accompanied by interesting and engaging marketing campaigns.

– In line with GO.25, in the first quarter of 2022, we created a large new “Data & AI Hub” team, which uses advanced analytical solutions such as predictive analysis, machine learning and AI to support the sales, products and operations management. All this to optimize operations and more accurately diagnose the expectations of our customers – adds Karol Półtorak, Vice Chairman of the Board of Directors for Strategy and Development of the CCC Group.

Leave a Comment