CNOVA
N.V.
Second Quarter 2017 Activity
Amsterdam - July 11, 2017, 07:45
CEST - Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392)
("Cnova" or the "Company") today announced unaudited 2nd quarter 2017
operating data as well as details of its strategic realignment
plan.
-
GMV: €685 million (+11%
like-for-like[*])
-
Mobile share:
37.2% (+ 776 bp)
-
Marketplace share:
35.0% (+ 314 bp)
-
CDAV
share:
32.0% (+1,547 bp)
-
Net sales: €410 million (+9%
like-for-like*)
-
Traffic: 208 million visits
(+12%)
-
Active customers: 8.4 million
(+10%)
-
Orders: 5.7 million
(+9%)
-
Launch of volume-centric
strategic realignment
-
Cdiscount renews market share
gains (Gfk)
Emmanuel Grenier, Cnova CEO, commented:
"During the
2nd quarter of
2017, our traffic and GMV grew at a double-digit rates, our
customer loyalty program doubled in size and our marketplace
accounted for more than one-third of our GMV. It is clear to us
that, thanks to our technological expertise, we have one of the
best traffic growth dynamics in France, and our mission going
forward is to leverage this into higher GMV and net sales growth
rates on a sustainable basis. To do this, we have embarked on a new
strategic realignment plan designed to one, expand massively our
direct sales product range; two, reinforce our multichannel offer;
and three, accelerate the introduction of new B2B revenue
streams.
Cdiscount is
entering into a new growth phase which will see, compared to the
end of 2016, its direct sales product range nearly quadruple in
size, a 50% increase of its marketplace product catalogue and an
80% expansion of its distribution center floor space by the end of
the 1st quarter of
2018. The new revenue streams we are introducing or accelerating
will include increased marketplace fulfillment, new B2B services
for our marketplace vendors such as foreign exchange and merchant
financing, new data-based revenues, consumer credit and insurance
solutions. And on top of all of this, we are improving customer
satisfaction before and after purchase. For example, we are
launching a new multichannel strategy that includes a new delivery
option, and we are making more progress in terms of light product
delivery speed. We have completely revamped our mobile
site/application and customer area to make it more reactive and to
make ordering products easier and faster.
The
implementation of these growth initiatives, which temporarily weigh
on margins and free cash flow this year, will allow Cdiscount to
reinforce its top player status while strengthening its underlying
profitability profile on a sustainable basis. These strategic moves
are already stimulating top-line growth. They also allow us to
enter into new markets where we are making market share
advances."
2nd Quarter 2017
Highlights
GMV (gross
merchandise volume) totaled €685 million, an increase of 11.5%
compared to the same period in 2016 on a like-for-like (l-f-l)
basis. On a reported basis, GMV rose 7.4% compared to 2016. The
mobile share of GMV was 37.2% representing a growth of 776 basis
points.
The marketplace share of total GMV continue to expand,
reaching 35.0% for an increase of +314 basis points. The number of
products available increased by 28%. The share of marketplace GMV
fulfilled by Cdiscount rose from 5% at the end of June 2016 to 13%
one year later while the number of vendors using Cdiscount's
fulfillment services doubled y-o-y. The quality of our marketplace
vendors showed continuous improvement with customer satisfaction,
up by 14 points on average since the beginning of 2017 compared to
last year.
Net sales
totaled €410 million in the 2nd quarter 2017, up 8.6% on a l-f-l
basis compared to the same period in 2016 (+4.5% on a reported
basis). Home furnishings and household appliances accounted for 50%
of direct sales, while hi-tech items (AV and smartphones) and IT
goods represented 34% of direct sales.
According to Gfk (May 2017),
Cdiscount's Technical Goods (Hi-tech, Computers and Home
Appliances) value and volume market share grew y-o-y by +151 and
+229 basis points, respectively.
Traffic at
Cdiscount.com during the 2nd quarter of 2017 grew by 11.6%
year-on-year (y-o-y) to 208 million visits. Traffic has grown on
average by double-digits on a y-o-y basis every quarter since the
beginning of 2016. According to Médiamétrie, Cdiscount posted the
highest progression among the five main e-retailers in France
during the first five months of 2017 in terms of the number of
desktop unique monthly visitors.
The mobile share of traffic
increased +767 basis points to 59.5% during the same period and has
been growing by an average of 600 basis points per quarter since
the beginning of 2016.
Traffic |
1Q16 |
2Q16 |
3Q16 |
4Q16 |
1Q17 |
2Q17 |
Growth (y-o-y) |
+12.1% |
+10.7% |
+6.5% |
+13.2% |
+11.4% |
+11.6% |
Mobile Share |
50.6% |
51.8% |
54.2% |
55.1% |
56.9% |
59.5% |
The number of active customers also continued to rise, reaching 8.4
million at June 30, 2017 (a y-o-y increase of 9.5%).
Membership of Cdiscount à volonté (CDAV), Cdiscount's customer loyalty program doubled
y-o-y.
Orders
totaled 5.7 million during the 2nd quarter of
2017, for a y-o-y increase of 8.9%. CDAV customers accounted for
29.6% of the 2nd quarter 2017 orders compared to 15.4% during the
same period in 2016.
The number of
items sold increased to 11.1 million from 10.4 million during
the same period in 2016 (up 6.4%).
2017
Strategic Realignment Plan
The Group is embarking on a wide
ranging growth plan in order to return to a sustainable
double-digit GMV growth rate while strengthening sources of
profitability. Strategic initiatives launched
during the 2nd quarter 2017
were primarily of three types: product catalogue expansion,
multichannel offer reinforcement and the launch of new revenue
streams.
Product catalogue
expansion:
-
Cdiscount is currently in the middle of a
massive product range extension program designed to almost
quadruple the number of CDAV-eligible direct sale references and
increase marketplace references by one-half. In addition to
reinforcing its market leading position in the Home product
category, Cdiscount is boosting its diversity and availability of
items in Leisure, Family markets (Sport, Games, Baby.), Technical
Goods (notably accessories) and plans to launch a Fashion segment
by the end of 2017. Cdiscount also strives to anticipate demands on
innovative and "trendy" products (connected objects, hand spinners,
fidget cube, etc.). At June 30, 2017, Cdiscount had already doubled
the number of SKUs that were available at the beginning of the
year. Newly available SKUs represented close to 7% of total volumes
sold and 5% of total net sales in the second half of June
2017.
-
In order to accommodate the increasing size of
the product range, Cdiscount has initiated a warehouse capacity
expansion program that should increase by close to 80% total
distribution center (DC) floor space between the end of 2016 and
the end of the 1st quarter
2018. At the end of June 2017, total floor space had grown to 380
thousand m² (up from 295 thousand m², or +28%, compared to the end
of June 2016), including a 30,000 m² extension of the Orléans DC.
By the end of March 2018, Cdiscount plans to have over 10 major and
several smaller DCs throughout France with a total floor space
trending toward 600 thousand m². This will include a newly built
60,000 m² DC in the southern part of Paris opening in July
2017.
Multichannel
offer reinforcement:
-
In conjunction with the expansion of Cnova's
product catalogue as well as to achieve more synergies with Groupe
Casino in France (Casino), Cnova is implementing with Casino a
reinforced multichannel strategy which allows Géant hypermarkets
and Casino supermarkets (DCF) as well as Cdiscount to carry the
same home furnishing high-tech and household appliance items, offer
a wider variety of delivery options to DCF and Cdiscount customers
(Cdiscount home delivery, Click-&-Collect pick-up, online
purchase with immediate DCF in-store pickup and the usual in-store
purchases) and achieve operational cost savings. It also addresses
the increasing trend whereby consumers are buying more of these
product categories online while preserving the inclination of many
customers to discover and inspect products in-store. As a
consequence, Cnova is now managing both DCF's and Cdiscount's home
furnishing and household appliance inventory (Cnova bought Casino
hypermarkets and supermarkets existing inventories on June 18,
2017, for a total consideration of about €78 million including
VAT).
Launch of new
revenue streams:
-
Roll-out of Fulfilment-by-Cdiscount (FBC) and
premium pack (higher visibility and statistics report) for
marketplace sellers.
-
Monetizing the flow of vendors on our
marketplace interface with new advertising revenues.
-
Launch of new services for vendors, including
foreign exchange and merchant financing.
-
Plan to offer a wider range of insurance
options, initially to include school, pet and credit card services
with an extension to home and loan insurance.
Technology and Logistics
Cdiscount continues to maintain
its technological and logistics edges in the French market:
-
According to Yooda, Cdiscount posted the
strongest SEO progression in the French e-commerce sector in 2017
thus far.
-
Cdiscount is optimizing the performance of its
platforms through the implementation of React Native, the
deployment of Progressive Web App (PWA) and the testing of
Accelerated Mobile Pages (AMP).
-
Cdiscount's mobile site has been completely
revamped such that there is a higher visibility of promotions,
optimized ergonomics and new functionalities. As a result, the
mobile share of total GMV reached its highest level ever in June
2017 (39%) and the page load speed should continue to improve
throughout the 3rd quarter
2017.
-
The reinforced multichannel offer dovetails
nicely with Cdiscount's Click-and-Collect pick-up point network
(C-&-C), many of which are part of Casino's bricks and mortar
footprint in France. During the 2nd quarter 2017, more than half
(53%) of our orders were delivered through our C-&-C
network.
-
Cdiscount began in July 2017 to offer same-day
delivery of a selection of its light product (<30 kg) catalogue
to its customers in Paris. The entire light product catalogue will
be available for Paris same-day delivery beginning October
2017.
-
Planning for delivery by drone, first tested in
December 2016, is moving forward in conjunction with Thales.
-
Warehouse modernization proceeds apace with the
planned installation of additional 3D automated packaging
machines.
Second Quarter
Activity
Cnova N.V. |
Second
Quarter(1) |
Change |
2017 |
2016 |
Reported(1) |
L-F-L(2) |
GMV(3)
(€ millions) |
685.2 |
637.9 |
+7.4% |
+11.5% |
Marketplace
share |
35.0% |
31.9% |
+314 bp |
CDAV share |
32.0% |
16.5% |
+1,547 bp |
Net sales (€ millions) |
410.3 |
392.5 |
+4.5% |
+8.6% |
Traffic (visits in
millions) |
207.9 |
186.2 |
+11.6% |
Mobile
share |
59.5% |
51.8% |
+767 bp |
Active customers(4)
(millions) |
8.4 |
7.7 |
+9.5% |
Orders(5)
(millions) |
5.7 |
5.2 |
+8.9% |
CDAV share |
29.6% |
15.4% |
+1,415 bp |
Number of items sold (millions) |
11.1 |
10.4 |
+6.4% |
-
All figures are unaudited and
have been adjusted for all periods to reflect i) the merger of
Cnova Brazil into Via Varejo on October 31, 2016, ii) the sale or
closure of Cdiscount international sites, and iii) the sale of the
specialty site MonShowroom. These are reported as discontinued
activities in accordance with IFRS 5 as of January 1,
2016.
-
Like-for-like: includes
adjustments related to i) the sale or closure in 2016 of the
specialty sites Comptoir des Parfums, Comptoir Santé and
MonCornerDéco, ii) the voluntary pullback of B2B sales initiated in
the 3rd quarter of 2016, iii) the exclusion of TV products, which
benefited from the mandatory shift to Digital Terrestrial
Television (DTT), and the Euro football championship in the 2nd
quarter 2016 (respectively, 1.5pt and 1.8pt on GMV and net sales
growth), iv) the impact of 2017 summer sales starting one
week later than in 2016 (respectively, 2.3pt and 2.0pt on GMV and
net sales growth), and v) Cdiscount sales
realized with Casino clients in France resulting from the
multichannel agreement with Casino effective June 19,
2017.
-
GMV (gross merchandise volume)
is defined as product sales + other revenues + marketplace business
volumes (calculated based on approved and sent orders) +
taxes.
-
Active customers at the end of
June having purchased at least once through cdiscount.com during
the previous 12 months.
-
Total placed orders before
cancellation due to fraud detection and/or customer
non-payment.
***
About Cnova
N.V.
Cnova N.V., one
of the leading e-Commerce companies in France, serves 8.4 million
active customers via its state-of-the-art website, Cdiscount. Cnova
N.V.'s product offering of more than 23 million items provides its
clients with a wide variety of very competitively priced goods,
several fast and customer-convenient delivery options as well as
practical payment solutions. Cnova N.V. is part of Groupe Casino, a
global diversified retailer. Cnova N.V.'s news releases are
available at www.cnova.com. Information available on, or accessible
through, the sites referenced above is not part of this press
release.
This press
release contains regulated information (gereglementeerde
informatie) within the meaning of the Dutch Financial Supervision
Act (Wet op het financieel toezicht) which must be made publicly
available pursuant to Dutch and French law. This press release is
intended for information purposes only.
***
Upcoming Events |
|
Tuesday,
July 25, 2017 at 07:45 CEST |
Cnova
First Half 2017 Activity & Financial Results |
Tuesday,
July 25, 2017 at 16:00 CEST |
Cnova
First Half 2017 Activity & Financial Results
Conference Call & Webcast |
|
Conference Call and Webcast connection details |
Conference Call Dial-In Numbers: |
Toll-Free: |
|
France |
0 800 912 848 |
UK |
0 800 756 3429 |
USA |
1 877 407 0784 |
|
|
Toll: |
1 201 689 8560 |
|
|
Conference Call Replay Dial-In Numbers: |
Toll-Free: |
1 844 512 2921 |
Toll: |
1 412 317 6671 |
|
|
Available
From: July 25, 2017 at |
13:00
EDT / 19:00 CEST |
To: August 2, 2017 at |
00:00 EDT / 06:00 CEST |
Replay Pin
Number: |
13665365 |
|
|
Webcast: |
http://public.viavid.com/index.php?id=125127 |
|
|
Presentation materials to accompany the call will be available at
cnova.com on July 25, 2017. |
|
|
An archive
of the conference call will be available for a limited time at
cnova.com following its conclusion. |
|
***
Cnova Investor Relations Contact:
investor@cnova.com
Tel: +31 20 795 06 71 |
Media contact:
directiondelacommunication@cnovagroup.com
Tel: +31 20 795 06 76 |
[*]
Like-for-like: includes adjustments related to i) the sale or
closure in 2016 of the specialty sites Comptoir des Parfums,
Comptoir Santé and MonCornerDéco, ii) the voluntary pullback of B2B
sales initiated in the 3rd quarter of
2016, iii) the exclusion of TV products, which benefited from the
mandatory shift to Digital Terrestrial Television (DTT), and the
Euro football championship in the 2nd quarter 2016
(respectively, 1.5pt and 1.8pt on GMV and net sales growth), iv)
the impact of 2017 summer sales starting one week later than in
2016 (respectively, 2.3pt and 2.0pt on GMV and net sales growth),
and v) Cdiscount sales realized with Casino clients in France
resulting from the multichannel agreement with Casino effective
June 19, 2017.
PR Sales release 2Q17
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Cnova N.V. via Globenewswire
Cnova NV (EU:CNV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cnova NV (EU:CNV)
Historical Stock Chart
From Jul 2023 to Jul 2024