Increase in revenues in all signs and the intensive development of the Omnichannel platform – CCC Group Closing

Increase in revenues in all signs and the intensive development of the Omnichannel platform – the CCC group closes the 4th quarter 2021

The CCC group ended the 4th quarter of the 2021 financial year (November 2021 – January 2022) by an increase in revenues by a 46% yard. This is the third in a row, in which the group’s sale was over PLN 2 billion. The overall share of e-commerce increased to 56%, mainly due to the increase in the number of online channels, digitization of the stationary network and the development of mobile applications. The group recorded increases in all signs. In the past period it also announced a new business strategy HIM.25: Everything Fashion. Omnichannel Platform, whose one of the main goals is a three -time business increase by 2025.

In the fourth quarter, the CCC group revenues amounted to PLN 2.04 billion, increasing by 46% yard. The share of e-commerce, which reached the level of 56% (+11 PP KDK) is also consistently growing. The group records positive dynamics in all signs: the new HalfPrice concept generated PLN 114 million in revenue (+39% KDK), and DeeZee increased by 58% yard, for the first time in history crossing the limit of PLN 100 million of turnover per year. Sale Omnichannel CCC on m 2 commercial space has improved by 4% compared to Q4 2019. According to the adopted strategy, chain stores are more and more digital, becoming an extension of online sales.

In the last quarter of 2021, the group gross margin increased by nearly 4.5 P.P. yard. The group recorded its highest level and the best dynamics in the CCC segment, which was primarily influenced by active price management and consistent optimization of discount policy. Thanks to this, the CCC segment achieved the highest gross margin in the last 4 years in 2021, exceeding 53%. What distinguishes this segment is also a consistently improved inventory structure.

Costs in the CCC group increased by 41%, and their level was slightly lower than the dynamics of revenues (+46%). A higher cost base is primarily the result of investments related to the implementation of the strategy goals HIM.25: Everything Fashion. Omnichannel Platform.

In order to implement our new strategy, we develop competences within the organization, strengthening teams responsible for technology, digital sales, product and marketing communication. We also implemented the order management system (OMS), which allowed the integration of an e-commerce store store, which increased the availability of the offer for customers. Our Polish stores have become logistics – we are currently sending over 50% of national online orders from them. We are also developing a HalfPrice network. In the past quarter we opened 28 new stores and launched the e-commerce channel. We also gradually strengthen the image and recognition of CCC own brands, with particular emphasis on projects addressed to the generation with. You can recall, for example, the cooperation of the Sprandi brand with young rapper Young Leosia, or the introduction of the Universe capsule for sale, designed in the spirit of Athleisure – says Marcin Czyczerski, president of the board of the CCC Group.

The CCC Group closes the EBITDA quarter of PLN 26 million and a operational loss -PLN 113 million, noting to improve RDR by PLN 64 million and PLN 53 million, respectively.

The organization also continues its activities in the field of sustainable development. In the last quarter, M was Roadmap of closed circulation economy, which contains 10 projects regarding the development of circularity. The group conducts many initiatives in this area. Among other things, in the last quarter, the number of CCC stores equipped with special containers for used footwear has been significantly increased, allowing them to give them a “second life”, thus reducing environmental costs associated with footwear production.

In the entire 2021 financial year, the group’s revenues amounted to PLN 7.6 billion, of which more than half – 51% – was online sales. The gross margin grew in all segments, translating its improvement at a consolidated level by over 3 P.P. yard. Despite significant restrictions in stationary trade in the first quarter of 2021, the year -round operational result was improved by yards by over PLN 500 million. The group’s EBITDA in 2021 reached PLN 508 million (profitability 6.7%).

Continuation of the dynamic development of the MODIVO Group

In the fourth quarter, the Modivo group (Eobuwie.PL and MODIVO), despite the demanding base resulting from significant restrictions in stationary trade in Q4’20, achieved a high, 35% increase in revenues. Sales in the MODIVO segment grew by 123%RDR, the third quarter in a row, noting accelerating sales dynamics (Q2’21 +95%, Q3’21 +109%). Moreover, in perspective European markets – in Germany and Italy – The sign’s revenues have increased almost three times. The share of Modivo’s total revenues in the sale of the MODIVO group increased to 22%, by up to 9 P.P. yard.

The dynamics of the MODIVO Group (34%) is determined by strategic development. In the reported period, it was similar to the growth rate of revenues (35%). Work is underway on Marketplace Modivo and launching new EOBUWI mobile applications.PL and Modivo. The group also opened a new distribution center in Romania. Also implements 3. The expansion stage of the Logistics Center in Zielona Góra. At the same time, she develops local offices in the most promising markets for her.

We are at a very important development point of the Modivo group. We have just completed the process of changing the name to Modivo S.AND. It is to symbolize the development of new product categories and our international aspirations. This is also another step towards the stock market debut. Maintaining high sales dynamics over the following quarters confirms our belief that we recognize market needs well, and our plans and related investments are the right direction of activity. We also care about the development of the ESG area, which is why we are the first in the e-commerce industry in cooperation with InPost, we bring reusable packaging into circulation. Thanks to this, the demand for “disposables” will decrease up to ten times – says Damian Payment, President of the Management Board of Modivo S.AND.

Throughout the financial year, the MODIVO Group recorded an improvement in sales by 50% RDR (dynamics similar to 2019 and 2020) and reached EBITDA at the level of PLN 262 million – above the assumptions communicated at the beginning of 2021 (PLN 230-250 million).

The CCC Group in the fourth quarter 2021 announced a business strategy HIM.25: Everything Fashion. Omnichannel Platform. It assumes a threefold increase in revenues, at least 12% EBITDA profitability, 60% of the online sales channel share, introducing new product categories, as well as an increase in customer satisfaction, employee involvement and development of organization in accordance with the principles of ESG.