CCC brand on the brake, side brands are developing. The company discloses the results
The CCC group explained recently debt issuespostponing the repayment date of PLN 250 million for a group of banks until October 2024. The results for the third quarter show that it brings profits, so creditors do not have to worry about their money temporarily, although CCC has run out of liquid funds.
The group’s revenues increased by 18%. year on year up to PLN 2.4 billion in the third quarter, and the EBITDA (operating result plus depreciation) adjusted for one-off events increased by 1 percent. yoy up to PLN 197 million —presented in preliminary results. The debt has hardly changed, but has dropped by 15%. cash compared to the situation last year, mainly in the Modivo internet segment.
The market received these results positively, as the share price went up by over 3%. on Friday.
CCC brand on the brake
The report for the third quarter shows that the CCC brand itself is no longer something that the group is developing. During the year, 1 percent was lost. of sales area of stores under this brand, i.e. four stores, and about 24 percent. The eobuwie network has grown (an increase by 8 stores) and by 177%. HalfPrice chain (increase by 51 stores).
At the end of October (the end of the financial quarter at CCC), there were 943 stationary stores, i.e. 46 more than a year ago. Of these, 824 under the CCC brand, 84 HalfPrice and 35 —eobuwie.
The revenues of the CCC brand increased year-on-year by only 2 percent. and profits were saved by reducing sales and administration costs by 1 percent. After adjusting for one-off events, the EBITDA result remained at almost the same level as a year ago and amounted to PLN 134 million. As much as PLN 94 million, the CCC brand was losing on negative changes in exchange ratesi.e. the weakening of the zloty against the dollar.
The group’s second most important brand, i.e. Modivo (formerly eobuwie), is rapidly developing. Here, revenues increased by 23%. yoy and exceeded PLN 1 billion in the third quarter. Out of this, the eobuwie brand gave PLN 779 million (+11 percent y / y), and Modivo PLN 229 million (+89 percent y-o-y). However, EBITDA adjusted for one-off events fell by 57%. yoy to PLN 15 million and the operating results were negative (PLN -8 million).
Modivo complains about the “aggressive level of discounts in the broad market”. Reduced purchases for Modivo’s fall-winter 2022 collection “to protect gross margins and reduce working capital investments.”
The HalfPrice brand is developing the fastest. Here, revenues increased by as much as 214 percent. year on year to PLN 258 million, and the adjusted EBITDA was PLN 33 million compared to PLN 1 million a year ago. The Group boasts a 25% increase in sales without taking into account newly opened stores (LFL). and an increase in traffic in these stores by 30 percent. The brand debuted just over a year ago.
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