The CCC group improved its revenues by 85% in the first quarter of 2021. Sales also above Q1 2019 levels.
The CCC Group ended the first quarter of the fiscal year 2021/22 with revenues of PLN 1,429 million(+ 85% y / y). From February to April, the company operated in a very demanding market environment, and with the constraints of stationary sales in many countries, online channels played a leading role, accounting for 62% of revenues. At that time, e-commerce recorded a dynamic growth of 86% y / y. Eobuwie.pl, which acquired two new minority investors at the end of March, achieved revenues of PLN 768 million, with a very high EBITDA margin of 10.5%.
In the first quarter of 2021, the CCC Group continued the development of the omnichannel model, optimizing the offline channel and scaling its presence in the online segment. The company successively strengthened its market position through digitization and implementation of new technologies, investments in logistics, launching new online platforms on new markets, and expanding the product offer in line with the principles of sustainable development. The CCC Group, taking into account its intensive development, in the first quarter of this year. also decided to expand the composition of the management board.
In the period from February to April, the company generated revenues of PLN 1,429 million, i.e. 85% higher than in the previous year. 62% of revenues were e-commerce sales (+ 86% yoy), which the Group realized through 82 online platforms.
- The beginning of the first quarter of the financial year 2021/22 was successful for us. The unfreezing of the economy in February released the accumulated demand and allowed for the sale of an additional several hundred thousand. pairs of shoes from the fall-winter collection. With the beginning of the quarter, we offered customers a new SS21 collection that met
with an enthusiastic reception. The lockdown introduced at the end of March, which again included shopping malls, limited our activity in the stationary channel for over a month. Despite the unfavorable business environment, we achieved good sales results, which we hope to strengthen in the coming quarters. The implementation of this goal will also be possible thanks to the launch of a new concept of off-price stores in the stationary version, which will also debut in the online channel in autumn - says Marcin Czyczerski, President of the Management Board of the CCC Group.
The gross margin of the CCC Group in the first quarter of 2021 amounted to 43.5%, which means a slightly better result y / y. The achieved margin level was significantly influenced by the high share of the e-commerce segment in revenues, as well as the limited possibility of effective sale of the spring-summer collection in stationary outlets in the so-called first prices. The dynamically developing online sales channel was also the main factor influencing the change in the level of costs. From February to April, they amounted to PLN 716 million, compared to PLN 620 million a year earlier (+ 15% y / y). The Group maintained high-cost discipline. Despite the restrictions in stationary trade, thanks to the actions taken by the Group, the operating result improved y / y by nearly PLN 200 million.
In the analyzed period, the priority of the CCC Group was to maintain liquidity and maintain the stability of long-term financing. To this end, the company started talks with banks and bondholders.
The group initially confirmed the selected terms of the new bank financing. This is the next stage of work on debt refinancing, the aim of which is to ensure a safe, long-term level of financing, in line with the business assumptions of the GO.22 strategy.
Taking into account the dynamics of the development of the CCC Group and its ambitious plans, in the first quarter of 2021, three new Vice-Presidents were appointed to the management board - Igor Matus, Adam Holwa, and Kryspin Derejczyk. In the coming months, they will supervise three important business areas - in the field of supply chain management, corporate governance, and financial management.
The dynamics of e-commerce is gaining even more momentum
Due to the lockdown introduced at the end of March, the Group focused its sales activities on e-commerce. In the first quarter of 2021, the share of this channel in total sales was 62%. During this period, very high y / y increases were recorded by every online sales platform, and in the case of the eobuwie.pl group, the results were 79% higher than last year. Sales generated by this company from February to April amounted to PLN 768 million, with an EBITDA margin of 10.5% (+4.4 pp y-o-y). The eobuwie.pl group is also dynamically developing its online store with premium Modivo fashion. The share of this platform in eobuwie.pl sales was at the end
In the first quarter of 13%.
- For many months, e-commerce has remained the main sales channel, for which the shipping efficiency of the distribution center is important. Therefore, an indispensable element of our further development is an investment in logistics infrastructure. Due to the presence of the CCC Group on many foreign markets and the growing sales there, we decided to open a new distribution center as part of the eobuwie.pl activity.
in Bucharest. It will support the service of key areas for the company - Romania, Bulgaria, and Greece.
In line with our assumptions, the first parcels from the center, where 1.5 million pairs of shoes can be found, will reach customers in June. We hope that as a result of the investment made, we will be able to systematically increase the scale of operations - says Marcin Czyczerski, President of the Management Board of the CCC Group.
The above-average increases in sales in the first quarter of 2021 were achieved by other online platforms of the Group, with a 17% share in the sales of the e-commerce segment. The ccc.eu store generated PLN 128 million in revenue, while the DeeZee brand generated PLN 24 million, which means an increase of 146% and 71%, respectively. CCC has also launched another, 7th market where ccc.eu operates - Slovenia. Shipments of orders to customers from this country are carried out by the newly launched e-commerce logistics center in Polkowice. In the second quarter of this year. ccc.eu will also debut in Bulgaria and Croatia.
Strengthening customer relations
In order to build even better customer experiences, the CCC Group successively uses digitization and new technologies. In the first quarter, the company focused on the further development of the mobile application, offering users not only an attractive product offer but also access to useful functionalities (it will soon debut in it also, among others 2D scanner esize.me). At the end of April, the CCC application was already used by nearly 5 million users.
- We want to strengthen our position as a brand that follows the voice of customers and creates new trends. We are closely observing how the behavior of consumers is changing today, who more and more often decide to buy products through online platforms. We also see that their choices are more conscious and undertaken with the protection of the natural environment in mind - adds Marcin Czyczerski - Compared to previous years, the sale of the product range has significantly increased, which is in line with the Group's Sustainable Development Strategy and one of its key areas - responsible product. The consequence of this change is the constant expansion of the "Go for Nature" product line, the production of which takes place using ecological materials and technologies that optimize water and energy consumption - he adds.
Actions taken by the CCC Group are noticed in the international arena. The company is the only Polish brand to be included in the prestigious Refinitiv Diversity & Inclusion 2020 rating, covering 9 thousand. organization. The CCC Group took second place among representatives of the fashion industry and 11th place in the general classification.
The total area of the CCC sales network at the end of April 2021 was 671 thousand square meters. m2. The CCC Group is present in 29 countries - in 22, sales are carried out in 1005 stationery stores, and in 18 through the online channel. The Group has a total of 82 online platforms throughout Europe: eobuwie.pl, ccc.eu, Modivo, DeeZee,
Gino Rossi.
