WOOD Flash – CCC: key takeaways from the 4Q24 conference; PLN 1.4bn capital increase around the corner
Yesterday (17 February), CCC hosted a conference for investors to briefly discuss its 4Q24 results, and present its long-term financial goals and the details of the buyout of the 23% minority stake in its e-commerce subsidiary, Modivo Group. While the company’s 2025E ambitions of PLN 12bn in consolidated sales and PLN 2.4bn in consolidated EBITDA are only 2% and 22% above our forecasts, respectively, the gap widens to a material 55-72% by 2030E. In our view, the key reasons for the increasing difference are the launch of the new athleisure concept, World Box, the acceleration of the Half Price expansion and the restructuring of the e-commerce business. Finally, CCC has announced its plan to finance the purchase of the remaining 23% minority stake in Modivo Group for PLN 1.4bn, to come from an SPO, in which Mr. Dariusz Milek has declared his participation at PLN 500m. We expect the stock to trade sideways over the next month, until the EGM approves the SPO, which should follow shortly thereafter. On our numbers, the stock is trading at attractive multiples of a 2025E P/E of 15.4x and an EV/EBITDA of 8.6x, and offers 14% upside potential to our price target of PLN 227/share.CCC is engaged in the wholesale and retail trade of clothing and footwear. Co. offers its products to wide range of consumers, from demanding clientele of trendy boutiques to value-oriented medium segment customers, to less wealthy customers seeking reasonably priced quality footwear. Co. pursues a strategy of brand diversification, which is reflected in its three autonomous distribution channels: a chain of official CCC stores, BOTI footwear shops and QUAZI boutiques. Co. offers more than 2,500 designs of footwear. Co. also owns more than 67 proprietary brand names e.g. Lasocki.
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