Q3 2024 CCC SA Earnings Call Transcript
Key Points
- CCC SA (WAR:CCC) reported a significant increase in operating results for Q3 2024, with EBITDA reaching nearly PLN 1.5 billion, marking a fourfold increase year-on-year.
- The company achieved a 14% year-on-year revenue growth, with a 3 percentage point increase in margins, driven by improvements across all brands, particularly HalfPrice and Modivo.
- The cost/income ratio improved to 39%, surpassing the company's benchmark of 40%, indicating effective cost management.
- CCC SA's profitability in the footwear sector remains strong, with a consistent profitability rate above 20% for six consecutive quarters.
- The company has successfully reduced net debt and improved financial liquidity by utilizing factoring lines and extending payment terms with suppliers.
- Despite the positive financial performance, CCC SA faces challenges with higher inventory levels, particularly in the CCC brand, which the company plans to optimize over the next two to three quarters.
- Modivo's profitability, although improved, remains lower than the group average, highlighting the need for further enhancements in this segment.
- The company is heavily reliant on licensing agreements for growth, which may pose risks if these agreements are not renewed or if market conditions change.
- CCC SA's expansion plans, while ambitious, require significant capital investment, which could strain financial resources if not managed carefully.
- The company's strategy to reduce reliance on partnership brands may limit product diversity and could impact customer choice if not executed effectively.
Good afternoon, ladies and gentlemen. We'd like to welcome you to the earnings conference after Q3 2024. We're going to have two parts today's session. Briefly, I will discuss the financial results of the group over the previous quarter during the second part of the session. I'll give the floor to the CEO, Dariusz Milek, who will say a little bit more, then just about the financial model, so generally about the operations of the group. Let's go ahead and take a look at the financial results.
In terms of the operating results in Q3 2024, we have a result that is higher, more than four times higher year-on-year. So the result is PLN330 million compared to what we saw in the previous quarter. So EBITDA is nearly PLN1.5 billion. So we only -- we're only PLN15 million short of that watermark. And so we hope in the near future, we'll be able to beat that watermark, dealing with a record-breaking level of EBITDA in a single quarter.
If we talk about the brands that contributed to these results, we see improvement in all of our brands. So
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