CCC Group in Q4 2024: nearly fourfold increase in operating profit with over PLN 500 million in EBITDA
In the fourth quarter of FY 2024 (November 2024–January 2025), the CCC Group achieved a nearly fourfold increase in operating profit and more than doubled its EBITDA, to PLN 525 million. Revenue growth was accompanied by a further improvement in the Group’s gross margin. Tight cost discipline was maintained across all business lines. Efforts to further boost strong profitability of CCC and HalfPrice were successfully continued. A notable surge in operating profit and EBITDA was recorded by the Modivo Group, driven primarily by a focus on highly profitable sales and substantial cost reductions resulting from its ongoing integration with the CCC Group.
As we unlock stronger synergies across all companies within the Group, having centralised our teams and processes, fully leverage our omnichannel business model and expand the share of licensed products, we can see the expected outcomes of these measures, making our business increasingly profitable,” commented Dariusz Miłek, President of the CCC Group Management Board. “With CCC and HalfPrice already propelled to high levels of profitability, our current focus is on improving the Modivo Group’s performance. Over the past two quarters, we have seen a substantial surge in profitability of our online business. The full impact of these efforts will become even more evident in the coming periods,” he added.
The CCC Group’s revenue in the fourth quarter of FY 2024 amounted to PLN 2.9 billion, up by 14% year on year. The CCC segment recorded a surge in revenue (+25%), despite only a modest expansion in retail space (+1%). Meanwhile the HalfPrice chain, rolled out to two new markets (Spain and Bulgaria), saw its sales grow by 28%. The Modivo Group’s revenue drop (-3%, on +4% at Modivo and -6% at eobuwie) was affected by strategic decisions to withdraw from less profitable markets and the planned reduction in performance marketing spend, with investment redirected to acquire traffic for the most profitable products.
"It’s been an exciting quarter of hard work, during which we introduced HalfPrice to Spain, a highly promising market of Southern Europe.The performance of HalfPrice’s first store in the region went beyond our expectations, and we see tremendous potential for expanding the chain across that part of Europe. Additionally, we signed an agreement to acquire a majority stake in the company behind several retail formats operating under the SklepBiegacza, WarsawSneakerStore and SKstore brand names. This deal will strengthen our position in the speciality premium segment, opening up new, highly promising collaborations with top global brands,” said Dariusz Miłek, President of the CCC Group Management Board.
In the fourth quarter of FY 2024, the CCC Group’s gross margin improved by 2pp year on year, as gross profit increased across all business lines. The most significant margin expansion was delivered by the Modivo Group (over 4pp), driven mainly by the shift towards a greater share of the new collection and more licensed products in total sales, coupled with the delisting of unprofitable brands from the product portfolio.Gross margin achieved by the CCC business line on omnichannel sales (excluding the effect of wholesale) reached 57% (up by 1pp). HalfPrice also recorded another margin improvement, by 1pp.
Thanks to the firm commitment to cost discipline, the CCC Group’s cost-to-revenue ratio in the fourth quarter of FY 2024 went down by more than 8pp year on year, to 35%, marking the sixth consecutive quarter of that metric’s improvement. Its significant year-on-year decrease was reported by each business line: 7pp by CCC, 5pp by HalfPrice and an impressive 12pp, translating into a 30% nominal cost reduction, by the Modivo Group. These improvements result from initiatives aimed at restoring and boosting the Modivo Group’s profitability through extensive integration and pursuit of maximum synergies across the CCC Group.
In the fourth quarter of FY 2024, the CCC Group delivered PLN 368 million in operating profit, a nearly fourfold increase year on year, and PLN 525 million in EBITDA (+122% yoy), with all business lines contributing to these results. CCC recorded a 46% year-on-year increase in operating profit, with its EBITDA margin rising by 2pp. HalfPrice more than doubled its EBIT (+107%), while its EBITDA margin improved by 4pp. The Modivo Group’s operating profit and EBITDA went up by PLN 181 million and PLN 179 million, respectively (with exceptional 18pp growth in both EBIT and EBITDA margins).
For the full year 2024, the CCC Group recorded PLN 1.1 billion in operating profit, reflecting a year-on-year increase of over 500%, and PLN 1.7 billion in EBITDA (+120%).
“Last year was a period of dynamic and profound changes for our Group. While we are pleased with the clear improvement in financial performance, this is certainly not our final word. In 2025, we aspire to achieve PLN 12 billion in revenue and enhance our EBITDA margin to 20%,” said Dariusz Miłek, President of the CCC Group Management Board. “Given the revision of the Modivo Group’s business model aimed to transform it into the operational hub for the entire CCC Group’s online business, requiring close operational integration across all channels and a unified customer base, we have decided to forgo our previously announced plans to seek a public listing of Modivo on the Warsaw Stock Exchange. Instead, we are focusing on steering this business to become the most profitable e-commerce platform in Europe and fully integrating it within the CCC Group’s structure.”
