UPDATE: CCC footwear estimates PLN 376 mln EBITDA in Q1 2025, above market expectations

The estimated results are above the market expectations, as the PAP Biznes consensus was for a PLN 368.7 million (EUR 86.94 mln) EBITDA and a PLN 207.6 million (EUR 48.95 mln) EBIT.

In the prior year period, CCC posted an operating profit of PLN 151 million (EUR 35.6 mln) and EBITDA profit of PLN 301 million (EUR 71 mln). Adjusted EBITDA was PLN 285 million (EUR 67.2 mln).

In the first quarter of 2025, the group's revenue increased by 4 percent year on year to PLN 2.35 billion (EUR 554.1 mln). Analysts had expected revenue of PLN 2.29 billion (EUR 540 mln).

As reported, the CCC group generated sales of PLN 1 billion (EUR 235.8 mln), up 9 percent year on year. Higher revenues were also recorded by its brand HalfPrice as they reached PLN 443 million (EUR 104.46 mln), up 20 percent year on year.

The 6 percent lower revenue in the Modivo group (down 5 percent for e-obuwie, down 8 percent for Modivo) is, according to CCC, in line with assumptions and is mainly due to strategic decisions related to the termination of operations in unprofitable markets.

According to CCC's estimates, the gross margin on sales in the first quarter of 2025 fell by 0.8 percentage points year on year to 50.7 percent.

As stated, in the following quarters, the group's margin level will be positively affected by the rapidly growing share of licence brands in the offer.

The CCC group maintains cost discipline in all business lines. In the first quarter, the group recorded a decrease in the cost-to-income ratio by almost 2 percentage points to 43.9 percent. This was the seventh consecutive quarter of year-on-year improvement.

"We are consistently pursuing our strategic objectives. We have ambitious plans for the development of retail space, this year by as much as over 300,000 square metres, and we are successively implementing them," said the CEO of CCC group Dariusz Milek, quoted in the press release.

"This is indeed more than we originally envisaged - we have to take advantage of the opportunities that come our way - our shops are very profitable, and, in addition, we are receiving offers to lease very good premises on favourable terms for the group," he added.

CEO Milek stressed that CCC is focused on expanding its business in CEE region, but in addition, the group is exploring its options in the Southern Europe.

"(...) The opening of a HalfPrice shop in the Spanish capital is behind us, and at the beginning of May the chain's first shop in Italy started operating. The debut in both these countries is a big success for us, which gives us hope for successful further expansion in these markets," Milek said.

At the end of April 2025, the CCC group had 1,052 shops (an increase of a 7 percent year on year) with a total area of 876,854 square metres.

pel/ ao/