The CCC Group in Q2 2024 (May’24 – July’24) recorded over a threefold increase in operating result and a significant improvement in EBITDA profitability. The Group’s revenues were 6% higher – sales growth was noted in CCC, HalfPrice, and Modivo Group. This was another quarter of significant strengthening of the gross margin – a marked improvement was noted in HalfPrice (+13 pp) and CCC (+5 pp). In each business line, the cost-to-revenue ratio was lower YoY due to continued, high cost discipline. In July, the Group successfully completed the refinancing process of the CCC Business Unit, which will positively impact the reduction of financing costs and release the potential for further, dynamic development of the most profitable and proven business formats.
In Q2’24, the CCC Group achieved revenues of PLN 2.6 billion, marking a 6% YoY increase. Turnover in the CCC segment was 7% higher (LFL stores +12%), with continued optimization of retail space (-2% YoY). Meanwhile, HalfPrice revenues increased by 23% YoY and were consistent with the planned pace of sales network expansion. Modivo Group, on the other hand, registered a 1% YoY sales increase.
In Q2’24, the CCC Group once again recorded a strengthening of the gross margin, which was 4 pp higher YoY. In the discussed quarter, a marked improvement in the margin was noted in the CCC banner – it increased by 5 pp YoY. This is the second consecutive quarter with a gross margin of approximately 60%. In HalfPrice, the gross margin was almost 13 pp higher YoY. This is due to a good, continuously developed, attractive product offer, better terms of purchase of collections, and a conservative pricing policy in the mentioned banners.
“We see a marked improvement in results for another consecutive quarter, proving that our unique business model very well meets the needs of today’s customer,” said Dariusz Miłek, President of the CCC Group’s Management Board. “We consistently strengthen the gross margin, including in the CCC banner due to the continued development of the high-margin licensing model. Globally recognized brands have appeared in our offer, which help us in generating good LFL sales and strengthening profitability, especially abroad. The share of licensing brands in the offer of CCC and the remaining Group banners will continue to increase in the upcoming quarters.”
In the second quarter, the CCC Group maintained high cost discipline. In the discussed period, the cost-to-revenue ratio was lower YoY in CCC, HalfPrice, and Modivo Group. The Group’s costs were reduced by 1%, despite the increase in retail space across the Group by 7%. In the CCC banner alone, a drop in costs by 2% was noticed, marking the eighth consecutive quarter of reducing this indicator YoY. Meanwhile, the Modivo Group recorded costs lower by 4% YoY.
“We are particularly proud of maintaining high cost discipline – each business line has improved the cost index, which on the Group level is now only about 40% (-3 pp YoY), and we would like to further improve it in the second half of the year,” said Dariusz Miłek, President of the CCC Group’s Management Board.
In Q2’24, the CCC Group achieved an operating result of PLN 249 million (over three times increase YoY) and PLN 401 million EBITDA profit (+79% YoY). The CCC banner recorded an operating result higher by PLN 85 million (+74% YoY) with an EBITDA profitability of 26% (+6 pp YoY). On the other hand, HalfPrice in Q2’24 recorded a marked improvement in EBITDA profitability to 18.5% (over 17 pp YoY), mainly due to strengthening the gross margin and high cost discipline. The Modivo Group earned an operating profit of PLN 8 million (+PLN 26 million YoY) and an EBITDA profit of PLN 36 million (+PLN 31 million YoY).
In July, the CCC Group successfully completed the refinancing process of the CCC Business Unit, securing financing of up to PLN 1.8 billion. The new financing structure provides greater flexibility, including through the increase in limits on bank guarantees and documentary credit as well as reverse factoring, and also allows for the reduction of financing costs and foresees higher limits of available investment outlays. This releases potential for further expansion of proven and profitable formats in the region.
“We are very pleased with obtaining new financing for the CCC Business Unit. We now have access to larger, cheaper and more flexible capital. Importantly, the new funding gives us the opportunity to further develop our unique business model. We have great, profitable business formats that have performed well in many markets. Our duty to shareholders is to continue to develop them. The CCC Group intends to implement a wise and profitable expansion in the key markets of its current activity,” adds Dariusz Miłek, President of the CCC Group’s Management Board.
Source: https://managerplus.pl/grupa-ccc-odnotowala-ponad-trzykrotny-wzrost-wyniku-operacyjnego-i-znaczna-poprawe-rentownosci-ebitda-w-ii-kwartale-2024-roku-62542
