CCC financial results IVQ 2016 - press release
CCC S.A., the largest retail footwear company in Central Europe and the largest footwear manufacturer in Europe, reached in the fourth quarter of 2016 a net profit of 190.4 million PLN with sales revenues of 1132.6 billion PLN. Operating profit amounted to 218.1 mln PLN and EBITDA 237.1 mln PLN.
As at 31 December 2016, the total net sales, including franchise stores domestically and abroad amounted to 862 stores and floor space amounted to 458.6 thousand m².
The year 2016 is a continuation of the long-term strategy, according to which the CCC Group is expanding in the markets of Central and Eastern Europe seeking to become the leader in each national footwear market in the region. The main pillars of growth in 2016 were: Poland, Romania, Hungary and Croatia and the countries of Western Europe - Germany and Austria. In the fourth quarter of 2016, the Company opened 12 stores domestically and abroad it focused its activities on the Austrian market where 7 new stores were opened and on the Romanian market, which was increased by 6 new stores. In the area of e-commerce, through the synergy with eobuwie.pl S.A., the Group has been striving to become a leader in online sales of shoes in Central Europe. Eobuwie.pl sells shoes and handbags through its regional domains in Poland, the Czech Republic, Slovakia, Germany, Romania, Bulgaria, Lithuania, Hungary and Ukraine.
FINANCIAL RESULTS OF CCC FOR THE FOURTH QUARTER OF 2016
Detailed financial figures of CCC are as follows:
| In thousand PLN | Q4 2016 | Q4 2015 | change (value) | change (%) |
| Net sales revenue | 1132,6 | 755,4 | 377,2 | 49,9% |
| Operating profit (loss) | 218,1 | 118,3 | 99,8 | 84,4% |
| Net profit (loss) | 190,4 | 105,2 | 85,2 | 81% |
FOREIGN EXPANSION
The sales network of CCC abroad, at the end of December 2016, consisted of 426 stores, including, inter alia: 82 stores in the Czech Republic, 75 in Germany, 69 in Hungary, 50 in Romania, 42 in Slovakia, 39 in Austria, 20 in Croatia, 11 in Slovenia, 11 in Russia, 9 in Bulgaria, 7 in Latvia and 5 in Ukraine.
In the fourth quarter of 2016, CCC Group on foreign markets opened 77 new stores, two of which were opened in the new Serbian market. The main area of activity of the Company in the reporting period remained Austria - 7 openings, Romania - 6 openings and Germany - 4 openings. Other new units refer to the Slovak, Czech, Hungarian, Russian, Slovenian and Bulgarian markets.
Number of own stores and franchises store of the CCC Group
| Number of stores | As of 31.12.2015 | As of 31.12.2016 |
| CCC STORES | 759 | 862 |
| CCC OWN STORES | 695 | 796 |
| Poland | 410 | 436 |
| Czech Republic | 79 | 82 |
| Slovakia | 37 | 42 |
| Hungary | 61 | 69 |
| Austria | 27 | 39 |
| Croatia | 13 | 20 |
| Germany | 51 | 75 |
| Slovenia | 8 | 11 |
| Bulgaria | 6 | 9 |
| Turkey | 3 | - |
| Serbia | - | 2 |
| Russia* | - | 11 |
| CCC FRANCHISE STORES | 64 | 66 |
| Ukraine | 5 | 5 |
| Romania | 42 | 50 |
| Latvia | 7 | 7 |
| Lithuania | 2 | 3 |
| Estonia | - | 1 |
| Russia* | 8 | - |
*Since 20.09.2016, the company CCC Russia sp. z o.o. has been s a subsidiary of the issuer.
"The year 2016 undoubtedly deserves to be called the best in the history of the CCC Group. Within 12 months we increased the floor space of the Group by 90,000 m² in selected locations. Sales last year increased by nearly 40%, for the first time in history exceeded 3 billion zlotys net. Last year's collections enjoyed a reputation among our clients and together with a well-thought marketing campaign enabled us to increase the market share in the region, which could affect further increases in sales in the coming years. In 2016 we acquired new markets and opened a new distribution company in Serbia and launched a franchise sale in Estonia.
The year 2016, in addition to success in the traditional parts of our business, it is also the spectacular results of the online platform eobuwie.pl – it managed to double sales, enter new foreign markets and at the same time not to lose its high profitability against distinctive from the competition.
This year, our activities are also focused on the expansion of floor space and we intend to increase by no less than 100,000 m² of new floor space, 40% of which will be opened in Poland and the rest will fall into foreign markets. "- said Dariusz Miłek, The President of the Management Board of CCC S.A..
For additional information please contact:
Bartłomiej Piekarski
Investor Relations Manager
Tel. (76) 84 58 686
Mobile: 667-872-742
e-mail: [email protected]
Marcin Czyczerski
Vice President of the Management Board, CFO
Tel. (76) 84 58 420
e-mail: [email protected]
CCC Group is a leader in retail footwear market in Central Europe and the largest manufacturer in Europe. The CCC Capital Group consists of: CCC S.A. - the company managing the retail sales network, CCC Factory Sp. z o.o., the largest footwear factory in Europe, and companies dealing with selling in foreign markets, inter alia: CCC Czech, CCC Slovakia, CCC Hungary, CCC Austria, CCC Germany, CCC Bulgaria. Sale of the collection is carried out in a total of more than 860 retail units. CCC sells in local stores its own brands, i.e. products manufactured either in its own factory in Polkowice or commissioned for outsourcing manufacturing in the Far East. CCC Group's share in the highly fragmented domestic footwear market is estimated at over 20%.
