Along with the new CFO, we're going to go ahead and run through the discussion of the results for Q4 of 2022. We'd like to invite you to pose any questions on the right side of your screen, you have the chat window. During the Q&A, we'll field your questions. Q4, just like the entire of last year, was a very demanding period for the industry in which we operate. Despite the demanding environment, we've utilized our advantages and the opportunities, and here are the results. We can see that the Group's revenue is growing quickly, our sales per square meter is growing for the eighth time in a row very quickly. We've seen a reduction in costs. We've started to monetize our first technology investments in Modivo and have in mind here the marketplace.
HalfPrice has confirmed its profitability and the scalability of its business model. CCC, in line with the plan and in line with what we said, is optimizing its working capital by leaps and bounds. Now let's go ahead and take a look, a closer look at all of these issues step-by-step. We'll start with CCC. We can see growth in sales density. This is one of the big growth drivers that was defined in our strategy. We're consistently and unwaveringly coming closer to our omni-channel approach of PLN 270 . We've been improving our results for the eighth time, and so we've improved the results from prior to COVID-19. Many people are saying this is the last normal year for sales.
The best year was 2017, so we had the record-breaking November of 2022. We posted sales of more than PLN 820 per square meter. We have more and more rapidly growing sales. We have upswing of 81% growth year-on-year. E-commerce under CCC re-represents some 30%, that's 10 percentage points more year-on-year. This is even more than we had anticipated in our very ambitious strategy. Because we are selling through digital channels and we're operating according to the conventional channels, we're able to brag about these results in e-commerce as well as in our omni-channel sales approach. You can see our application, which has been downloaded more than 10 million times and is now the main channel of sales for online in CCC.
CCC EU, as a sales channel, is growing much faster than the market. In 2022, we had some PLN 900 million in sales, and it's grown by some 90% year-on-year. It's n ot something that intends to slow down. We will continue to roll out solutions, omni-channel solutions to keep up that pace in CCC e-commerce as well as in the omni-channel approach and across the brand. When we talk about CCC segment and this business segment, another achievement from last year what we've been able to do in terms of working capital management and improving the turnover ratios. Perhaps this figure is not on the slide, but I would like for you to remember it, the strongest. This is in our report.
There's PLN 480 million, this is the number of the day. This is something that's very important, the response to many questions in terms of how the company wants to deleverage itself. What's the situation of the company? PLN 480 million, that is the response to many of these questions. This is the value by which we've reduced our stock level, our inventories year-on-year. This was last year higher by PLN 480 million, including what was on the seas. This means that we've been able to improve diametrically the structure and the aging structure composition of our stock, and this will have a positive impact on our results in 2023. It's PLN 480 million. This is the amount of inventory reduction in last year.
This was the highest level of stocks since 2016. That's not something we're looking at. Sales have grown by some 50%, we can say that this is a very good result. You can take a look at sales being up by some 21% year-on-year, stock is down by some 32%. What does this come from? Well, above all, this is coming from the very quality-based fashion products. We have high- quality of the parameters of the collection in terms of the breadth, the depth. The last but least, so it's synchronized to the sales calendar. We're not operating the way we used to work, we're working the way we need to work, the way we should work, and that means that we're improving our turnover ratios.
We've been improved it by some 80 days in terms of stock turnover ratio, and so I'm smiling a little bit, so we can say that these parameters can even be improved down to maybe 100 days. This would be short-term quarter, turnover, so then the results are even better. Why is this important? Because this portrays that in 2023, in terms of our stock and turnover ratio, it's gonna be even better because we're showing the average for the full year now. As you hear, and you see, we're pleased with this because this basically sets the rules of the game in terms of where we are on the boards, in terms of our investments, but also in terms of our financing. This is not the end.
There are another few major optimization things to be done in Q2, related to how we're going to utilize the inventory, the goods between the various stores and channels. We have some interesting tools that are very promising. We see a lot of potential to improve in terms of Modivo and HalfPrice. The work we're doing there will start a little bit later, but we can say that the results will be on par. We were optimizing the capital by speeding up, accelerating the stock turnover ratio, and we've been able to reduce the overall stock by PLN 480 million. In terms of Modivo, we want to set up the marketplace. That's a key driver. Why? With a marketplace, we're gonna be able to extend the breadth of the offer.
That's very important for e-commerce without having to debit or burden our own balance sheet. The marketplace generated some PLN 8 million in GMV. That's not a lot. That's year- to- date. But this is more or less what we thought it would be capable of doing in this time period. This is not a lot, but I remember jokes about the first PLN 1 million earned by CCC in e-commerce. A few years later, we came from PLN 1 million to PLN 1 billion, but we have the exact sort of same path. Time will tell. Of course, we're gonna work on this in order to replicate that history. We're very pleased with the very high growth rate of GMV, so 100% week- on week. That's our partners are using the marketplace to sell, and this is the level of weekly growth.
As a result, their interest in this project is also growing. We can say that the marketplace has achieved its purposes, and that's why we've been able to extend the offering of Modivo without actually having to put any burden on our balance sheet. We have 110,000 offers. 95% are new products compared to the ones that Modivo had, and 20% are in the home and beauty category, which we didn't have in Modivo, but they were present amongst our competitors. If we look at peer entities or peer groups, 25%, 25% of the business and above. You can see, if you compare those two figures, you can see that the business is just getting started, the story is just getting started.
We're going to expand this project abroad once we can iron out all the details. Let's take a look at what's happening in eobuwie.pl that we've talked about, Modivo. Across the year, e-commerce, multi-vend, there were a number of challenges during the year. You'll see that we are the first company that's presenting its results. Our major competitors, in terms of a comparable profile, will show the results a little bit later, but then you'll be able to see what our growth rate, our profitability looks like compared to others. That'll be the right time to this will change your optics. Even if we look at this year, the year we've got behind us, we can see that the hybrid stores have proven their merit.
This is a very important distinguishing mark of eobuwie.pl in Modivo against the competition, which gives the customers additional opportunities in terms of the reserve and collect, which is some 70% of the sales in stores. Then it's the service, the offering for Modivo and eobuwie.pl. In this contrast, that's to the competition. We can say that sales are up by 40%, and we've improved the sales per square meter by several percentage points. We wanna continue expanding this abroad. We have three stores, a couple in Czech Republic, one in Romania, and they've got very good sales results and results in general. We wanna continue that just the same way we wanna do that in terms of the eobuwie.pl zone within CCC stores.
This shows us the ability to create hubs, footwear hubs in shopping galleries in order to multiply the traffic, customer traffic footfall. This is something that's working, and we're gonna be able to show you that in subsequent quarters. Let's look at the flagship example of synergy. This is HalfPrice. HP, that's what we call HalfPrice. It's become or was built based on CCC resources. We're utilizing the synergy within the Group, a very important aspect of the synergy. Was and is, and probably will be even stronger. The combination of HalfPrice database and the, as well as the CCC half, database. That way we can double the number of customers, and we've worked a lot on that in, for many years in CCC.
We have 1.5 m illion c lub members in HalfPrice, a large percentage of them come from CCC, and we've not reached the 7 million. We have 1.5 m illion. You can see that 1.5 m illion club members are generating these results, we're not even halfway to where we wanna go. As a result of this support and the migration of club members from CCC to HalfPrice, we've been able to improve by leaps and bounds the familiarity with this brand recognition. You can buy your shoes in CCC, and in HalfPrice you can buy home and beauty and other clothing, apparel items. We're gonna be able to monetize this to an even greater extent later.
The brand recognition of HalfPrice is on the rise, we are putting this concept in very prominent places in shopping galleries. The current brand recognition of HalfPrice is around 50%. Basically we've doubled the brand recognition within the period of 12 months. A high level of brand recognition coupled with a lot of good work done by our buyers to extend the product offering. This means that we've been able to grow sales by some 40%. This is something that's driven our very high like-for-like sales result. This is up by some 30% in Q4. There's a lot of potential upside. We see a lot of potential in the H1, having in mind the low base from last year.
If we compare the operating profitability from Q3, we have moved into a scalable model. We can say that the EBITDA profitability in Q4 has moved up, and it's at a very high level of 12.6%. We can say that we don't even have two full years behind us from the get-go in this business. From the launch of this business. If we look at what we've done in terms of our sustainability strategy, this is one of our obligations. With respect to all of our stakeholders, in the most recent quarter, we focused on basically having this sort of closed- cycle approach, circular economy.
You wanna give your shoes a second life, and this is something that was launched right before COVID-19, and we've extended the reach to include all of the stores in Poland. Up until now, we've collected some 80,000 pairs of shoes, and we're giving them a second life. As the name suggests, them have DeeZee is going to join a similar campaign run by InPost called Eko Zwroty, so Eco Returns. We'll be reporting on the scope and the depth of information. As a result, the CCC Group received the main award for the best ESG report in Poland. For many stock or listed companies, this is a benchmark in terms of how reports should be prepared.
We continue to tweak it in terms of CO2 emissions. These are things that we're going to enrich it with in upcoming periods. We're on a good path to report CO2 in terms of Scope 3. This will be something that we'll do in the near future. Let's discuss the Q4 prelims. I'll give the floor to Łukasz now to go ahead and talk about our preliminary financial results for Q4.
Thank you very much, Marcin. Good afternoon, ladies and gentlemen. I'm extremely pleased to be able to present the preliminary financial results of the Group for Q4 2022. Let's begin with revenue. Revenue has grown by some 19%. That's a good result in a demanding macroeconomic environment. This growth was done primarily thanks to dynamic growth of HalfPrice and CCC EU.
We had a growth in HalfPrice of nearly 150%, primarily driven by more stores. We've had 152 square meters there, and we've been able to increase the sales per square meter, so sales density. It's been growing by 58%. We can say half of our revenue comes from online. 56% is online sales. The total sales, I wanna draw your attention to what's happened with our stock in Modivo. In HalfPrice, we can say that this is growing in line with scalability of business, whereas in sales of CCC, we can see the stock is down by more than 30% year-on-year.
This is a very good, a spectacular result, this confirms what we've been saying for quite a long time, that we wanna optimize our working capital. Our position in CCC means that we're in a much better position compared to our peers that are overstocked on the marketplace. Let's go ahead and talk about the individual segments of the business. If we look at CCC, we can say that the revenue is up by 21% despite the fact that consumer sentiment was not positive, wasn't conducive, and we can say offline sales were up by 11%. What's important, we can say the average monthly sales per square meter is up to some PLN 700 .
This is an increase of quite a bit over from one year to the next. We can see that online sales is up by 81%, and we can say that e-com represents 1/3 of its revenue in the CCC brand. What about the gross margin? Well, gross margin, as you anticipated, is affected by the consumer environment, and that means we have a demanding consumer who's focused on looking for promotions. What deserves special mention is what we've done in terms of optimizing 'cause our SG&A costs have improved by some 13 percentage points year-on-year. This is a very major improvement. In nominal terms, the costs have fallen by some 3%. As a result, the adjusted EBITDA, adjusted for one-offs, is 4x higher than it was last year. This is a very good result.
How is the Modivo Group doing?
In Modivo, it's up by some 7%, mostly thanks to the Modivo brand. It's up by some 42%. We can say that there's very strong competition because there's a lot of goods on the market. That means there's pressure on the margin. The pressure, well, the margin is down by 3.2%. Take a calm view of this. We believe that the overstocking levels on this industry will basically come down in spring and summer collection 2023. We have performance marketing is where we anticipate additional sales, and there's some other higher costs in retail sales, and then also the sales platforms are more costly.
What we should emphasize here is that Modivo has been able to optimize its logistics costs, it's down by 0.5 percentage points. That's a very good symptom. If we look at another segment, which is HalfPrice. Here are HalfPrice stores. We have more and more new stores. We have 91 stores now. As the network is growing, we can see that revenue is growing. In Q4, we can see that we had major growth of 148% year-on-year. Monthly sales density is more than PLN 600 . What's particularly important is that we have a high double-digit EBITDA results. We've been able to improve it by another 0.3 percentage points. EBITDA is now 12.6%.
This is a very good result, especially having in mind the fact that this was launched less than two years ago. What are we doing in terms of HalfPrice? We continue to develop the brand. We're improving the product offering, and we are extending the amount of stock, and this means that customers are taking a positive view of it. What portends well is the dynamically growing recognition of the brand recognition. We now have some 50% brand recognition of the HalfPrice brand. As the brand recognition is growing, this means that we're able to think about entering or penetrating new markets. The first market we're planning to penetrate is Latvia. We've talked about the segment results. Now let's do an overall summary of the Group's results.
If we look at the Group's results and revenue, we can say Q4 was another quarter in which we were able to achieve record-breaking results. We're at PLN 2.4 billion. This is 19% growth year-on-year, and that means that we have an additional 1% growth year or quarter-on-quarter. Gross profit is affected by the overstocking in the industry, and we had consumers looking for goods on sale. We can say the first positive signals from the market are as such, freight prices are down by 80% from the peak. We can say that the dollar exchange rate is down by 12% from the peak. These are a number of factors that are contributing to our ability to gaze into the future with some positive sentiment.
We also have optimization efforts in terms of HR costs, and we're also saving costs on energy in the overall group, and we're optimizing logistics processes in Modivo. All of these efforts will ensure that our costs stated as a percentage of sales will come down, and this will continue to improve or drive profitability. We've talked about the segment results in the overall group. Now let's scrutinize cash flow and look at the debt structure. If we look at cash flow, what we want to emphasize is we're continuing to pursue a strategy where we will optimize our operational activities. We want to continue optimizing our stock. It's down by more than PLN 450 million, and that's enabled us to finance the growth of HalfPrice.
We have e-com being grown and we're optimizing, of course, the store network. From a point of view of cash flow, what's important here is that we are really maintaining strong control, rigorous control over our investment outlays. Our total outlays were under PLN 240 million. We can say we have some growth in the Group, Modivo. There's a competitive environment there, and we had lower growth rate of sales compared to the previous quarter in terms of our expectations. That means we'll have improvement. Improvement will take place here. Now, if we look at our debt structure, so the debt of the overall group net of Modivo, it's falling quarter-on-quarter as a result of optimizing working capital in the CCC segment.
This is because we're able to improve the rotation turnover ratios of stock. That's an improvement of 225 quarter-on-quarter. This is a very important reduction. We're continuing what we announced in November 2022 in terms of the capital protection plan. We wanna improve and strengthen the balance sheet. We want to issue shares in the CCC Group. Secondly, we have the possibility of doing some sales back, lease sales back, sale- lease back programs. We wanna continue growing cap rise. We're also thinking about the IPO for Modivo. All of these potential efforts are on the agenda. We have not foregone any of them or forborne any of them. We have the convertible bonds for SoftBank.
The capitalization of the interest is the reason for why we have a change in the debt structure of the Group quarter-over-quarter. As a result of the net financial group in Modivo, after adjusting for these convertible bonds, we would have a net financial debt of PLN 78 million. That's more or less it from my side in terms of this portion of the presentation. I'll give the floor back to Marcin, who can go ahead and sum up today's meeting.
Thank you very much. The recap will begin by comparing the results we've generated with the assumptions and targets, what you've seen previously. Here are the targets that we've shown you in April and November. Most of our targets or assumptions we made then haven't achieved.
The revenue of the growth, we're in the middle of this revised range. Revenue in millions. This is from the most recent conference, and the costs of the Group are in line with our assumptions from November. Here again, with normalized revenue, you can see that we're more at the bottom than at the top range. We would have been a lot higher had we not had the two warm months of the quarter. Łukasz talked about our activity and what we've been saying since the beginning of 2022. We believe in our ambitions. We believe that we have strength in our brands, but the trajectory will be adjusted to incorporate what's happening in the marketplace.
This is something that's happened. As a result, CapEx for the overall group and in Modivo, we're at the bottom of the range. What was a particular surprise for us this year and for our competitors, not just for us, is the amount of challenges we have in the multi-brand portion of e-commerce. The revenue growth rate in Modivo, we were able to find ourselves in the middle of this range. EBITDA is slightly below the lower- range because of what's happened at the end of the year. We can tell you right away, this is not where our ambitions are. As I mentioned previously, we will work very intensively to ensure that this margin is at a level that we remember from 2020 or better.
CapEx, I've mentioned already, has been adjusted to the market environment, it's below the bottom of the range. Let's take a look at the assumptions we've made for 2023. We'll start with some external factors which are affecting the industry's results. Europe has learned to live without Russian resources and energy. Prices are much down. That means there's lower prices for energy. This means there's less inflationary pressure, and that means that the central bank policy is changing. We have, of course, then the disposable income of consumers. Although we anticipate that the first half of the year, especially the Q1, is gonna be as demanding as 2022, we do anticipate that there will be some freeing up of demand later in the course of the year.
This means that we'll have an opportunity to rebuild our margins and address our costs. We anticipate that the footwear market in Central and Eastern Europe will see growth in the double digits. We'll have some consumer- side challenges in the first half, so that means there won't be a lot of volume growth. We have similar assumptions for, you know, CCC and the rest of the brands. We'll share some of these economic factors with you a little bit later, but we wanna tell you a little bit more in greater detail in terms of what we anticipate and expect of the Modivo Group and how we want to improve its business performance in 2023.
We know how important this is for you in terms of valuing the Group, putting a price tag on the Group itself as an entirety. We understand that what type of pressure this part of our business was subject to in 2022, Basically it was moving uphill. In 2023, as I mentioned, we want to reverse the adverse trends on the business. We don't want to wait for what the environment will give us. We anticipate real activities, commercial activities, efforts, business efforts that we'll take jointly with the Modivo Group to achieve these things. We believe that it will and should grow more profitably than the rest of the marketplace. This is something that we're gonna be working on to achieve.
As I mentioned to you, one of the important elements of this program will be to complete the migration to the new e-commerce platform, making the technological change to the legacy technology. This is something that's being wrapped up now. We'll continue rolling out the marketplace as well as increasing store count, and then we'll have advertising services. An important element here will be the lower competitive pressure in terms of having such a high level of stock. We've talked about SS2023 being... It should basically rebalance the level between stock and... This is something that will happen, the rebalancing of our stock position in the spring of this year, in the summer. We believe that we'll be able to step back in terms of our image marketing. We'll do some savings that were initiated in 2022.
Let me remind you, we put some metrics on that to the tune of some PLN 90 million over the period of 12 months. You've not seen that in the Modivo Group, but this is something that will be clearly visible starting from 2023, so Q1 of 2023. Similarly, in CCC, we can say that their working capital investments in Modivo are gonna be very important. In CCC, we've been able to improve that by some PLN 480 million in turn on the book value in terms of the price tag on the stock. They've grown here in the Modivo Group by some PLN 300 million. We're gonna work on this in order to be able to improve the efficiency of how we utilize working capital, and we wanna follow the same targets we have in CCC.
In 2023, there are a lot of arguments that Modivo could have a much better year than it did in the past. Despite the challenges on the marketplace, these efforts have already been begun, and they were begun in 2022, and we won't have to wait for the results for too long. Let's go ahead and do basically a summary of the overall conference today. We see that external factors, the war, inflation, soft- consumer position, continue to have a major impact on the shape of the industry. We believe that this position will soften through the end of the first half of the year, but then we'll reverse. In this turbulent period, we can show that we're able to achieve our strategic targets, and we're focusing on the major efforts in 2022.
In Q4, we can include amongst our achievements, the increase of revenue by some 19% with a very high base of last year, so it's 45%. We can say that our omni-channel sales per square meter are up by 26%, where we've been able to reduce costs by 3% year-on-year in the CCC segment. You can see the results of our omni-channel uniform unique sales. We have PLN 8 million GMV in the marketplace of Modivo. This is something that's growing very quickly. We're aware that Modivo results in 2022 were not satisfactory. This example, along with the ongoing migration to the new platform, this is something that's underway. This is a fuel that we'll utilize to drive very good results in 2023, this is something that we're committing to.
We have the EBITDA HalfPrice, which is high double- digit at 12.6%, and it's grown, you know, quite a bit. As we scale up the business, the operational leverage will make things even better. We've reduced the stocks on a book- value basis by some PLN 480 million in CCC, we've improved the turnover ratios for stock by some 80 days on average. In the last quarter was even better. This is in line with the plan, in part, this was above our expectations. Now we'll be able to improve the working capital efficiency in Modivo. This is the expectation. This is the summary in a pill, in a nutshell of Q4. Thank you for your attention.
I'd invite you to join us for the Q&A session. We'll be back in just a moment.
Good afternoon, ladies and gentlemen. We're gonna go ahead and kick off the Q&A session. Let's go on to the first question. When will the IPO of Modivo take place? Will you fulfill the promise of doing it by the end of 2023? Ladies and gentlemen, in terms of the prospective IPO of Modivo, as was mentioned during the question itself, we had communicated from the get-go that we're considering this by the end of 2023. We are still in the course of 2023. We would uphold this assumption. Of course, we don't wanna do this without taking into consideration the overall market context, and we don't wanna do a fire sale. That's why we're monitoring this.
We'll continue to monitor the marketplace to make sure that the time for the IPO is optimum. Of course, all of 2022 across Europe was closed for IPOs, the sentiment is perpetuating, that's why the IPO is pushed back or suspended, I think that decision is natural and understandable. We'll continue to monitor the situation in order to select the optimum time. The concept itself is in play and is still current. There have a lot of questions about the IPO of Modivo. There are a large number of questions about the SPO at CCC S.A. When do you When will this take place? The financial agreements, do you have a deadline for securing new funds?
Before I respond directly to the SPO, I think we should basically frame that with all of the optimization efforts we're taking to improve the financial side of the Group. We're basically working on our cash flow, operating cash flow, and that's something we've talked about many times today. We've talked about that, and we showed you very specific outcomes of the work we've done. Above all, we're strengthening our EBITDA in terms of our costs. We're accelerating our stock turnover ratio in days and becoming more efficient. We can say that this optimization of working capital is a very important driver contributing to the deleveraging of the company. If we think about the deadline for the SPO, well, we have six months, which ends on the 17th of May, 2023.
This is still quite a bit of time for us to be able to finalize the entire process, and I think we can declare at this time that the execution is planned, and we uphold those plans. Of course, there's some consultations with the main shareholder and the supervisory board. We have other financial options. We have seven banks in the consortium and the syndicate we're talking with. We have sale-leaseback of assets, dedicated financing for HalfPrice, factoring, which is an optimum solution in terms of financing our purchases. We're thinking about all that, but the SPO is one of the elements in the overall puzzle, and certainly a key element. You mentioned about cost containment. How are you doing on your savings program?
Of the 300 million in savings, how much of that have you been able to achieve? Perhaps I'll react to this question, respond to this question. Some time ago, we put this plan in place in November, we've been consistent in terms of pursuing this plan. After some six months, we can say that since August, from the period of August to December, the CCC business unit, we have savings of roughly PLN 100 million. To show specific things, marketing is down by PLN 15 million, logistics is down by PLN 10 million, IT is down by more than PLN 10 million. International costs are down by PLN 25 million. We can say that these savings are in place, have been achieved, very specific. In terms of Modivo, we can say a lot of things have happened over the most recent six months.
The latter half of the financial year, we anticipate that it's around PLN 40 million versus the budget. Brand marketing is the largest line item, PLN 20 million, then from packaging down PLN 2 million, IT by PLN 4 million. We can say these are very big items within our overall cost savings program. We talked about ESG. We're pleased to hear, since the CEO talked about that you're asking questions about that. What sort of requirements do you have in terms of your suppliers? This is a question posed in English. Well, we expect of our suppliers that they will adhere to the requirements set forth in the updated Code of Conduct for suppliers. This is with respect to human rights. Let me remind you that we're present in Asian countries.
We have a pretty big team, procurement team, buying team, that are auditing these criteria, and the fulfillment of these criteria. We have some external audits as well that we're starting. Our Code of Conduct for suppliers is based on international guidelines and the OECD guidelines or the UN guidelines in terms of declarations. We're an active participant, and we've advised you of this previously. We're caring for the natural environment. This is one of the key responsibilities of the CCC Group, and we anticipate that our suppliers will join us and show due diligence in this area. We're talking about our key suppliers of goods and services, and so you can take a look at our report to get more in-depth information. It's a very profound report.
What were the reasons for recalling or dismissing your previous CFO from his position? Well, I can indicate here the perception of what is next in terms of the actions to be taken by the CFO, the management board, the supervisory board. Well, we can say that those visions were not entirely aligned. We also completed the process of refinancing, and this was one of the... with BGK financing. A lot of credit goes to the former CFO, and we've made a lot of savings in terms of the working capital. We talked about the PLN 480 million figure. The company and the brand are in a better position than they were a year ago.
We recognize that this is a good point in time to make a change, and it's time to turn this area over to Łukasz , who's been the CFO in the Modivo Group. That's more or less it. We've basically parted ways in friendly terms. Outside of Poland, especially in Western Europe, what were the results of Modivo Group? Are consumers from that part of the world, are they less price sensitive? We can see that the growth rate is softening. We can see that the price sensitivity in Switzerland and Germany is maybe not as high as in Poland, but it's balanced or offset in other markets. Central and Eastern Europe's markets have a relatively good potential with respect to the Western European parts.
We can say that since we are more situated in Central and Eastern in terms of the financial results, this is actually a positive thing that we're more present here. Having in mind the results published yesterday of the Group and having the first hard quarter of 2023, how do you see the condition of the overall group in the full year, 2023? Do you anticipate higher revenue versus the previous year? Clear. Maybe I'll start with in terms of this heavy... I'm not sure if this was a direct quotation. Basically, I tried to emphasize, I wanted to point out that we have our own agenda. We're improving our efficiency, and this is a real and true agenda. You can see what we've done in CCC, what we've done in HalfPrice.
We want to avoid making the impression that we see some positive things and we're walking that direction with a spring in our step, and we haven't noticed any of the difficulties. We see the difficulties in the industry and the economy and the consumers, and we can see that impact across the board. Having in mind where we have our brands in the midst of all of these challenges transpiring in first quarter and first half of the year. CCC and above all, HalfPrice to some extent are benefiting from the softness of the consumer by offering the best value for money, and HalfPrice is truly a distinguishing mark. To respond to the question, in 2023, we want to grow our revenue base.
As it's frequently said in our industry, we want to do that on a double-digit pace, but this is not something that we're focusing on. You can perhaps see in our presentation for some time now in our presentation, profitability is the most important thing and what's happening with working capital and at the end of the day, cash flow and what's happening with cash. This is the, basically, what's our mark of success or the lack of success. That's why we have a very important and significant improvement in the financial position of the company in 2023, having a result of or having in mind the results that will contribute to the year that's begun now. We have the capital side operations that Łukasz mentioned about, where we have a whole portfolio of things to be done. This is where we're gonna be focusing.
We have the 4th year in a row where you have a net loss. What is the idea of the management board to generate value outside of rights offerings? This is something that's happened a couple of times. You've not been successful in driving this net result. That's a very good question. We frequently discuss that. What's happened over the last three years, I think we've responded to the questions contained in this question posed during the presentation. Well, since this question has nested in a number of elements. With respect to CCC, over the last three years, we've been able to transform our model from one that was based on not entirely on fashionable products, where you had less and less demand. We've been able to rebuild our square meters in conventional stores, brick-and-mortar stores.
E-commerce started in June of 2019. At the end of 2022, basically, everybody sees us as the leader of digitization of stores and the omni-channel leader. A lot has been done. If you look at what's happened in terms of our growth rates with e-commerce, there's a major difference between ourselves. HalfPrice, we didn't even have it two years ago, now we have it. We were discussing whether or not this was a good idea. People were wondering whether we'd even learned how to sell shoes and footwear. You can see the parameters that we have here at HalfPrice. If we look at the last part of our business, eobuwie.pl and Modivo. I would just ask for a little bit of patience.
If you can compare our results to others, and you can look at the horizons, this was a demanding period for this portion of the market. Disregarding that, this is not something we're satisfied with in terms of the results, and we're declaring that in 2023, we're going to have much better results, both in terms of the results itself as well as the working capital efficiency. This is something that we're talking about quite a bit in terms of OC, operating cash flow, and improving the internal excellence and converting that into costs and our working capital. This is a portion of the business where a lot has been done, and we can see this effect in HalfPrice and CCC, and in 2023, this is something that we'll see in Modivo and eobuwie.pl as well. Thank you very much for the response.
Now we have the next question. With the SoftBank bonds, when will they mature? Will they be paid back in cash, or will they be converted into equity? Basically in mid-2024. If there's no IPO, they can either be redeemed or the contract could be modified. They form, they're secured. We're now in 2023, until the middle of 2024, we still have one and a half years, and we'll be modifying the financing formula with our partner to meet the needs of Modivo and having in mind the market environment and the ability to do and mount an IPO. We can say that the base scenario is to do the IPO this year.
Why do you have major costs hikes in Modivo in terms of overhead, SG&A, where we had, you know, an increase of 3.4%? Well, above all, there are three things. The size of operations was built not for 7% growth, but for much more substantial growth. I talked about that previously. The second thing, the major thing in the middle is technology in terms of, you know, contractor costs and employment costs. We've made some change in terms of the architecture. In its previous version, that it wasn't scalable, not at all. Basically, we're moving into a new application for the marketplace, new technology. Above all, we had to growing FTEs in that area, technology.
We're gonna change maybe our best practices in terms of how we present costs of stores in eobuwie.pl and the costs of e-commerce in CCC because we're showing variable costs. That fully are aligned to the sales points. In terms of the head office, with growing scale, this doesn't give you the full picture. If you look at other entities, we're gonna change that approach in the near- future. These sales channels, so it's e-commerce or retail channels, we're gonna show that per sales points, and we're gonna correct the head office calls, costs. In 2023, what's gonna happen with the growth of HalfPrice? Well, our ambition is to grow by improving operating results. We have a lot of ambitions in terms of like-for-like sales. In 2023, we're talking about 24%-25%.
That's the first area of growth in terms of extending the space we have. Depending on the market environment, we wanna open some 20 to 30 stores in Poland as well as in markets where we're present, plus in the new market we wanna penetrate, which is Latvia. This should increase the sales area by 20%-30%. The next question, since things are going so well, why is it so bad? Why is the market stopping to believe that you're gonna be able to repay the bonds and debt? Are you gonna be able to calm down the situation? Are you gonna do any type of efforts on the catalyst to do redemptions of bonds? Well, we continue to reiterate in terms of prices of equities and prices of bonds, we're not the main actor. We're the subject of those discussions.
We don't drive those prices. Well, in terms of the perception why the market is ceasing to believe in something, well, we're here, all I can really say, I can only hypothesize. If I were to respond to that from the depth of my hearts, I would say honestly that the overall market is very strongly anchored in the value of the group within Modivo itself. For a long period of time, hasn't seen that much of what's happening, what the positive things that are happening in CCC in terms of the transformation, product transformation, omni-channel transformation, what's happening in terms of communication there and how CCC has managed to. The market, I think, doesn't really perceive or hasn't really come to understand how much value is being generated by HalfPrice. You're multiplying the rates of growth and the EBITDAs of HalfPrice.
You're comparing that to American players. Well, this isn't aligned to reality. I don't think the market hasn't noted, hasn't appreciated the improvement that's been made. Deleveraging of a company is in our stock, which is located at Starowiejska 6 Street. We've got PLN 480 million less in our stock, and so the money is in the cash flow of the company. Basically, the market hasn't appreciated the total sum value of all these brands. They're looking at Modivo, which is with a one-off period, which was difficult for all the players in the market, and they're comparing it to other players. To understand things better, to gain a better grasp, and we have, you know, we're convinced that in 2023 is gonna be a good year for eobuwie.pl and for Modivo.
This is my perspective, and this is what I think. I can only surmise what other reasons might stand behind this. It's not up for me to say. I said we are the subject matter and not the actor here. What was your like-for-like sales factor in Q4 for retail stores, CCC? In Q4, it was 33% in the positive. What is the company waiting for in terms of the rights offering of PLN 500 million? You explained that without subscription rights and to give money to the company, nearly six months will have transpired, and the rights offering hasn't taken place where the bonds are being sold for 73% of their face value. So we're talking about, you know, covenants breakings. What is happening?
Well, the issuance will be done in response to the request of the main shareholder. Other shareholders might not participate, and this was treated as the main approach, having in mind formalities and time. The money from this, the proceeds from this issue are planned to be assigned to reduce debt, write- down debt. Well, the issue is planned for 17 May 2023, the plans are being upheld and the efforts that the company is making, we've shown you the results of what we've done up until now. Perhaps this issue is not as urgent as it once seemed. It would be very difficult for us to comment at what prices our bonds are sold.
We as a company, we can declare or we can show basically that all of our financial liabilities are being met on a timely basis. This is true of financial abilities to financial institutions. We don't see any threats. Let me say a little more. We're in the middle, but not even in the very middle of the period that was allotted to us by the shareholder meeting for running this. I'm not talking about we're not even at the midpoint of this period. These type of things happen close to the end of the period as opposed to the beginning of the... If we talk about covenants in reference to the most recent press release on Modivo, we gave some more information about that today.
This was based on what Łukasz showed, that the financial debt in a traditional sense of Modivo versus EBITDA. I'm just speaking from memory. You can correct me. Basically, it's 1.5x. We're only talking about the technical aspect of qualifying or classifying convertible bonds, which we treat as quasi-equity or equity-like because they're convertible, or the intention of the company is to convert them into equity. Whereas in bank agreements, which were entered into prior to the issuance of these convertible bonds, well, they're classified as debt. This is something that we're working on to change that. Let me give you that additional few words of precision. What sort of first price growth do you anticipate in CCC this year? Today, we're not gonna give any guidance about 2023.
What I can say is that we can see that our competitors, that our brand name, suppliers are raising prices substantially for 2023. We're gonna raise them as much as we raise them. I don't think this is a question that we should respond to, especially in a public forum. What's important to us, and there is some potential here, and we have potential on both sides. We have long supply chains, and we can say that the parameters are improving in terms of inflation in our supplier countries. This was never really a major problem elsewhere. The cost of transportation are at a normalized level. This is something that offers a lot of potential and the costs of currencies are at a better level than we anticipated. We're far from the maximum levels, and this is what we anticipate this.
We anticipate that we're gonna have some substantial margins in 2023 in CCC. How much CapEx are you planning to allocate in 2023, and how much of that CapEx will be for Modivo? We do not give that type of guidance. What we're saying, that in terms of operating cash flow or EBITDA or working on working capital or in terms of a rational approach to spending money and creating new investments, we take a very rational approach and we're focused on ensuring that the company is able to grow in terms of cash and EBITDA and not anything else. You have the very major decline of stock at the end of January. This suggests that you're in a rescue operation.
In terms of this critical cash position where you're talking about refinancing Modivo or also CCC outside of the issuance of stock to the controlling shareholder. We're not doing any type of rescue operations. In terms of the first portion of the question, I'm not sure what something is suggesting or not suggesting. If somebody were to listen, moving back over the last five conferences, I've been very consistent in mentioning that we're pursuing this program, we're executing it, and we anticipate the reduction. We wanna bring down stock turnover ratio in days to some 200 days, 230 days. We're close to 230 days. We're coming close to the benchmark set by our competitors. This is the level of inventory we should have. We've been able to achieve that in CCC.
We have some potential to improve in HalfPrice. We have a lot of potential to improve in Modivo, this is something we intend to do. How much debt will mature in 2023? In terms of maturing debt in 2023, we don't have that debt. Our debt will mature in subsequent reporting periods, as we've anticipated. As we've said, all of our liabilities are being paid on schedule. We have a deleveraging plan according to which we're moving forward in an unwavering basis. Modivo is talking with banks about extending its current financing, and we'll advise you of that. In terms of the rights offering, one of its ideas is to reduce financing costs and to strengthen the capital position of the Group, improve the balance sheet, and improve the ratios overall. Why were the bonds from banks actually reclassified as short-term?
It was presented in the short-term because the intention is to make settlements under the IPO prior to the elapse of 12 months. This is a result of the accounting rules. Where do you see a special slowdown in terms of sales growth? Is it more in Poland or is it more abroad? We see positive growth rate in Q4, which is the subject matter of our presentation. You've seen in our like-for-like sales in retail, we're up 30% in Q4. In CCC and HalfPrice, we see several smaller markets where there's a bigger slowdown or there's a problem with the consumers outside of Poland. We can say that in Poland, we're at historical minimum levels. Over the last three months, we can say the trend has reversed and it's been improving.
In three markets, we can say the situation is similar or a little more challenging. Those are smaller markets. As I mentioned, in 2023, this is a year in which we assume that international sales will have a faster growth rate than in Poland and will have a satisfying level of sales growth in Poland. In terms of e-commerce, we can say that it's growing dynamically year- on- year everywhere to a large extent, thanks to the omni-channel solutions we have. Here we have two markets that the rates are a little softer, it's still in double-digit figures. We can say that would be the short look at the map. Europe, Western Europe is a slightly bigger problem, our presence there is much smaller.
We also see that the thaw out amongst consumers because the consumer crisis started half a year earlier than in Poland, and we can see some symptoms that suggest that the thaw is on its way. We can assume that in maybe six months, this thaw will reach Poland. In terms of improving the balance sheet of the company and the sale-leaseback that you mentioned, what sort of figure are we talking about and what would be the object of this sale-leaseback? It's a little too early and premature to mention specific amounts. We have in mind our warehouse assets in Polkowice. According to the information we have, it's estimated at, of having a value of tens of millions of Euros.
It's a little bit premature to talk about specific times and amounts. We'll advise you according to the procedures if the transaction comes closer to being done. If we look at cost per square meter, what do you anticipate here in CCC in the upcoming year? Well, we're not gonna give you any greater guidance today. As I mentioned previously, we do see that in brick-and-mortar stores, there are some unfavorable parameters because of indexation, because of inflation, what's happening with Euro and minimum salaries. On the other hand, we're moving forward quite swiftly in terms of operational excellence and our logistics. Many of our stores have been able to mitigate. We've been able to take advantage of this effect.
If we look at revenue and costs, we can say that the cost dynamic will not be higher than 1/2 of the revenue dynamic or growth rate, so it shouldn't be a double-digit figure. Could you give us some color commentary about stock? If we look at the beginning and end of Q4, we estimate that you have much smaller purchases of new collections year-on-year. Do you confirm that? What's the percentage of the new collections, so spring and summer 2023 in the overall composition of stock in Modivo and CCC? Without digging very deep into the details, when you drop stock just by such a significant level, we can say that we have very simple rules. First, we have to synchronize the delivery dates because you don't want the collection to arrive too early.
In the past, we weren't masters of the world or champions of the world. We probably still aren't, but we're good enough, and that's sufficient for us. The next thing is the breakdown into MCs. The colors and in terms of to match the dates when the products are being sold. To a large extent, this is dependent on the depth of collections in terms of sizes and colors. We can say that it's the same as in 2022, spring and summer, more or less. Maybe it's a little higher. We can say that the delivery dates will be more in tune. We'll receive goods in spring when we're gonna sell spring collection, and summer goods will arrive when we're gonna sell summer goods. This is one of the things. This is a major simplification of what we're dealing with.
We have this stock turnover program that consists of hundreds of activities. If we look at the level of stock on 30 January, I don't see a lot of potential for additional improvement, maybe a few tens of millions Polish złoty. If you look at the average stock level and what's happening in season, there's still a lot for us to show, and this will have an impact on the average quantum of stock. We want to reduce lost sales because we have goods present, not in the store where it should be or not in the channel where it should be. I can declare that you'll see improvement and progress in terms of stock turnover as well as the sales generated. We know what we had to improve. We've improved that, and this will be particularly visible in Q2.
Could you give us some information what percentage of the interest has been on the-- bonds has been capitalized as of 31 January of this year? I don't understand why this was netted away for today's presentation because shareholders would be diluted. Well, this is a very technical question in terms of accounting aspects, but I'll try to respond to it. As we presented, the total value of the bonds is PLN 624 million, and this is decomposed into three components. The first thing is the debt instrument of PLN 500 million. We have the second element, which is PLN 49 million almost in interest, and the rest of that amount is the valuation of an embedded instrument which is valued at the end of every reporting period. It seems to us that we presented this in such a way in the presentation.
This was transparent and clear. We showed you the full amount of the debt. We broke it down into the bond debt and other debt. Sales in eobuwie.pl, despite higher marketing spend and promotions, is lower than last year. Could you give us some additional color commentary about the market performance and what's happening in terms of the average value of the basket and so on and so forth? If we look at price promotions, this is a result of the strong price competition and the fact that we had more stock in terms of autumn/winter 2022, in terms of higher marketing spend. Well, this is a result of several factors. We had inflation in per click or per session. We can say that deteriorating sentiment amongst consumers on many markets, that meant that the value of the basket in Western Europe was falling.
We also have the product mix, which is a major driver. Consumer is trading down or looking at a higher premium. What's very important here, and I wanna address this, we haven't talked about that. If we look at our head office costs or what's happened in Modivo and eobuwie.pl, this is of not performing. We can say that we're changing the platform. We're finishing up that program, and we can see how well and how strong the new platform, that app, is improving the traffic that we're not paying for. This is something that will contribute to better parameters in terms of our performance versus revenue in subsequent quarters. The next question was posed in English, I'll translate it. Do you plan to have greater synergies between CCC and Modivo? You could have cannibalization as a result, especially if we look at online sales.
Do you see potential for greater synergy in terms of marketing spend? We're paying a lot of attention to two things. We want these two things to be independent of one another, and we wanna be able to tap into what they offer the best for the second brand. We can say that the operator of e-commerce strategy in CCC is Modivo through the warehouse K1 or in the future, K2 warehouse. In terms of our e-commerce sales, we have our own products of CCC in the eobuwie and the Modivo platform. We have a single balance sheet, and we're not, you know, duplicating the warehouse input. We have the kiosk. We're looking for additional ways to tap into that.
We're thinking about how to create, you know, a footwear hub as we merge these two concepts and how we can propose several hundred brands in Modivo and combine the traffic from own brands of CCC. So this is something that raises the bar and increases sales densities to sales per square meter. We have new places to sell and pick up products. I think there's. We see quite a few new areas of synergy, and this is something that we'll continue to pursue. What I've said, we, our own brands in CCC are more and more popular, and we have a very specific program how to popularize even more strongly the eobuwie.pl platform. Maybe this was not a sufficiently high priority in 2022, I should say. Put it this way.
In 2023, we wanna change these things because we did better in 2021. We wanna have the highest margin products, and we can say that CCC products really stand out in terms of margins and high rotation turnovers. One more question about stock. This is the leitmotif. What's happened in today's conference? What happened that you suddenly were able to reduce stock in CCC? Why weren't, why could you do it in one year but weren't able to do it over the previous three years? What's the impact gonna be? Well, I have comfort, a lot of comfort in terms of being consistent in this scope. Since 2017, in terms of meetings with investors and analysts, I've been addressing this issue. It's not something you can do with stock. It's something that can be improved.
What had to change from that point in time to two years ago, I've addressed that. We had to make very strong changes to our IT systems in order to be able to track our stock, track and monitor the full supply changes. These technology issues weren't fully invested. We had to be able to respond to customers who were gaily moving through social media and didn't really have an idea about what a fashionable product, whether you're talking about Warsaw or Prague. The company was based on a product like this for quite a long time. We didn't have a channel that was giving you the maximum impact in combination with the brick-and-mortar network. We also had a shortage of human skills and competencies in order to find the quality parameters to plan procurement.
This is very important across the board in order to define what you really need and how it should be done. I've talked about that from the very beginning of 2017. The critical mass is something that we have to build in order to be able to do this. Starting with the supervisory board all the way down to people who are actually implementing these policies and this program, we were able to build a strong commitment. This was the right time. This was something that we could do more or less two years ago. We set up the targets. We've achieved those targets. We know we can do more, we wanna do more.
That's the full response to your question, that this is something that should have happened, but the organization had to get to that point in time that it could do it. We construed this in such a way. I'm not suggesting that we're flawless. Far from it. We can see today that our stores are well-prepared for spring, much better than any other stores. At the same time, we continue to sell winter products, pretty well. These two things aren't opposing. Can we improve? 100%, 200%, yes. Doesn't mean we should have done that. The PLN 480 million we saved, once again, this is what we said, this is the bank. This is, you know, where we have, you know, on the street, Starowiejska 6 Street .
This is where we have the safety of the company stored. This is exactly what happened. Thank you very much. We have the two last questions now. In HalfPrice, we can see the decline of the gross margin quarter-over-quarter. To what extent is this a seasonal impact, and to what extent is this an impact or a result of focusing on top-line sales? What are your forecasts for HalfPrice? If we look at gross margin in HalfPrice, we should compare it year-over-year, and it's grown by 3.7 percentage points year-over-year. If you look at a quarter-over-quarter comparison for gross margin, this has limited sense because, above all, this is driven by sales promotions.
You have to have in mind, although we have ambitions for the gross margin to be as high as possible, if it's too high in terms of its target, this would actually slow down the inventory turnover ratio or stock turnover ratio in stores. From the point of view of bottom line, this would not be an efficient undertaking. We try to calibrate our assumptions in 2023 in terms of margins and to make sure that the bottom line, the stock inventory turnover ratio, to make sure that all of those things are optimum.
In terms of the question, in terms of the rollout for HalfPrice in the upcoming quarters, we can say that we would like for these stores to be opened in the first half of the year to ensure that they can contribute to their sales result in a given financial year of 2023. What is the biggest threat to the operations of the company in H1 2023? What do you have in mind when you say that Q1 could be more demanding? I think I responded to that question several times during the course of today's Q&A. First, I wouldn't say that it's a threat. We see a challenge which others are also grappling with, and I think we've addressed many of these challenges much better than others.
If we look at Q1 in the beginning of 2023, you, as you analyze, observe, or track other companies, it's the condition of the consumer who will see how much they have to pay for natural gas, electricity. The perception of purchasing power may be subject to major degradation. It should not be downgraded from what we saw prior to January or in January and prior to the holidays. I would just sensitize you to this, as I did prior to the conference for Q3, that consumer and the consumer's purchasing power tells us where we have advantages, and we have to adapt to that. That's what happens with sales. The other thing that I would mention is inflation and its impact on costs.
We're in the process of pursuing the savings program we referred to, and we're able to offset a large amount of this cost increase through higher productivity. This is a demanding quarter for the entire industry. Perhaps the first half will be a demanding period. Then we'll be lean down because of cost, lean- down because of stock costs or... We have Modivo. Despite these challenges, we believe that this half of the year will enable us to generate better results than the marketplace. I think with this optimistic final word, we can wrap up today's conference. Thank you for your response. Thank you, ladies and gentlemen, for all the questions you've posed. This was the final question.
I would encourage you on an unwavering basis to maintain contact with the IR team at the conference, and we'll invite you to the next conference, which will take place in three months. In the meantime, we'll have the opportunity to meet at conferences set up by and run by brokers. Thank you very much. Thank you very much. Have a nice day. Goodbye then. Bye-bye.