Polish CCC Group increased sales by 25%
The CCC Group Management Board has published preliminary financial results for the fourth quarter of 2018, which show a significant increase in sales, largely due to the active development of the e-commerce channel, writes Worldfootwear.com
“The results of the fourth quarter largely determined the weather conditions, in particular the high air temperature that was observed in October. At the same time, October is the most important month for CCC. This was not a favorable factor for selling the autumn-winter collection at full price. In the context of the dynamic development of the retail space, the profitability of stores is crucial for us, it increases due to the reduction in transaction costs. In the fourth quarter, an important decision was made to sell the CCC Germany division, which eliminated the unprofitable part of the business. Product development remains the most important task for CCC, as well as adapting it to customer needs and strengthening new sales channels, ”says Marcin Chicherski, Vice President of Finance, CCC Group.
Group sales in the fourth quarter of 2018 reached 1,6 billion PLN (0,37 billion euros), sales growth compared to the result obtained in the fourth quarter of last year amounted to 25%.
Gross profit from sales increased by 24% to 818 million Polish zlotys (190 million euros). Gross profit increased both in off-line sales (53,5%) and in the e-commerce channel (41,8%).
At the group level, there was a slight decrease in gross margin, at 0,4 pp (to the level of 51,1%) as a result of changes in the revenue structure - the share of e-commerce in the sales structure increased. Costs increased to 673 million Polish zlotys (157 million euros), compared to 458 million Polish zlotys (107 million euros) in the fourth quarter of 2017, mainly due to the consolidation of acquired companies, increase in retail space and the scale of e-commerce.
As a result, CCC Group's net profit in the fourth quarter of 2018 reached 126 million Polish zlotys (29 million euros), decreasing by 18% compared to the result for the same period of 2017.
Sales in the e-commerce segment amounted to 328 million PLN (76 million euros) compared to 199 million PLN (46 million euros) in the same period in 2017 year, increasing by 64% year on year. They already account for 20% of the group’s income. An important role in the development of e-commerce was played by sales growth in the Polish multi-brand online store eobuwie.com.pl.
At the end of the fourth quarter of the 2018 year, the total sales area of the Polish retail network ССС amounted to more than 660 000 quarter. meters, the number of stores amounted to 1125, of which more than half are open outside Poland (as we wrote earlier of which 35 stores operate in Russia)).
The company's revenue in 2018 reached more than 4,7 billion Polish zlotys (1,09 billion euros) with the presence of the CCC group in 23 countries.
The CCC Group Management Board has published preliminary financial results for the fourth quarter of 2018, which show a significant increase in sales, to a large extent due to active development ...
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