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CCC SACCC fashion expects MKRI to record loss in 2025; results to improve significantly in 2026
Listed footwear and clothing group CCC assumes that this year its partner, franchisee MKRI will record a loss similar to last year's or slightly higher, which results from the liquidation of old goods. Next year, the company's results are expected to improve significantly, CCC said in another statement, referring to Ningi Research's allegations. CCC believes that the report is aimed at profiting from short positions.
"After a more detailed analysis of the Ningi Research report, we strongly emphasise that it is untrue and aims to profit from short positions," CCC said in the newest statement.
Earlier on Thursday, Ningi Research, which specialises in forensic accounting, announced that it had taken a short position on CCC shares. According to Ningi's report, CCC is a "façade built on aggressive accounting games, undisclosed related-party dealings, and a large-scale channel-stuffing scheme."
Authors of the report claim that evidence suggests CCC is concealing its operational shortcomings by "selling" hundreds of millions in unwanted inventory to a captive, insolvent franchisee called MKRI. Ningi Research believes this scheme artificially inflates CCC’s reported revenue and profitability even though the cash from these sales never materialises.
In its first statement sent to PAP Biznes, CCC denied the claims made by Ningi Research and stated that it is considering taking a legal action against the authors of the report in connection with the dissemination of false information that manipulate the share price.
In the second statement, the company announced that the group's gross margin on cooperation with MKRI is identical to the gross margin generated on cooperation with other partners in its wholesale business. Steps are being taken to restructure MKRI.
As reported by CCC, by mid-October 2025, the group had generated PLN 91 million (EUR 21.4 mln) in gross margin on wholesale sales to MKRI [PLN 80 million or EUR 18.8 mln in the first half of 2025, which represents 3 percent of the group's gross margin, and PLN 122 million (EUR 28.7 mln) since the beginning of the cooperation] as part of its normal business activities consisting in the sale of products to two partner store chains: kaes – a chain that CCC wants to acquire after obtaining the consent of Poland's antitrust and consumer protection regulator UOKiK, and Worldbox – a chain covered by a franchise agreement.
"The group's average gross margin on this cooperation is 33 percent, which is identical to the gross margin generated on cooperation with other partners as part of its wholesale activities," CCC pointed out.
According to the group, in 2025, MKRI will generate a loss similar to last year's or slightly higher, which results from the liquidation of old goods from before the start of cooperation with the group.
"All goods currently purchased by MKRI from the group have a positive impact on MKRI's EBITDA. We are currently working towards restructuring this entity. Its results will improve significantly next year," CCC said in the statement.
At 15:00 local time, CCC is to hold a conference to respond to Ningi Research's allegations.
The CCC share price reacted sharply to the claims included in the report. Shares fell by as much as low double-digit percent, with high trading volumes. At around 14:30 local time, the company's share price was down 4.5 percent to PLN 147 (EUR 34.57).
pel/ ao/ nl/
