CNOVA
N.V.
Third Quarter 2017 Activity
AMSTERDAM - October 12, 2017,
07:45 CEST - Cnova N.V. (Euronext Paris: CNV ;
ISIN: NL0010949392) ("Cnova" or the "Company") today announced
unaudited 3rd quarter 2017
operating data and provided a progress report on its strategic
realignment plan.
-
GMV: €842 million (+15%
like-for-like[1])
-
Net sales: record growth to
€539 million (+18% like-for-like1)
-
Continued strong market share
gains in July and August
-
Traffic: 222 million visits
(+16%)
-
Active customers: 8.6 million
(+8%)
-
Orders: 6.2 million
(+9%)
-
Cdiscount Number 1 in France
for visibility and commitment on social media[2]
-
Volume-centric strategic
realignment plan is well on track
Emmanuel Grenier, Cnova CEO, commented:
"Cnova posted an
outstanding sales performance in the 3rd quarter.
Growth of our traffic and GMV continued to run at double-digit
rates, and we gained significant market share during the quarter
according to Gfk.
These results are
the fruit of the strategic realignment plan to expand our product
range as well as reinforce our delivery offer and technological
advantages. Launched earlier this year, it is fair to say that the
plan is well on track.
The number of our
direct sales references has almost tripled since the end of 2016
while the number of our marketplace SKUs has increased by more than
50%.
We have
reinforced our lead in delivery thanks to the opening in September
of a 60,000 m² brand-new distribution center in the Paris
area.
We have
maintained our logistics edge by launching an incubator dedicated
to start-ups in logistics and transportation and through our
partnership with Chronopost on the extension of Sunday
delivery.
We have developed
our financial services with the launch of a short-term consumer
credit offer ("Coup de pouce").
With the
completion of our websites and app revamp, we have now embarked on
providing a series of new features on mobile and desktop to
optimize our tailor-made customer experience such as personalized
front page and recommendations, geolocation, voice command and
augmented reality.
As we move into
the 4th quarter 2017
and 2018, Cdiscount plans to reinforce its multispecialist approach
by combining a wider product assortment, tailor-made customer
experience and value-added services."
3rd Quarter 2017
Highlights
GMV (gross
merchandise volume) totaled €842 million, an increase of 14.9%
on a like-for-like (l-f-l) basis compared to the same period in
2016. Cdiscount commercial performance benefited from the strongest
growth ever achieved in summer sales with an increase of 16% in GMV
compared to the same period in 2016.
Mobile share
of GMV continued to rise, representing 39.5% in the 3rd quarter
2017, i.e. +814 basis points on a yearly basis.
The marketplace share of total GMV reached 31.2% in the
3rd quarter
2017. Marketplace has regained a strong growth rate in the last few
weeks with a GMV share of 32% in September. The number of
marketplace products available increased by more than 50%
year-on-year (y-o-y) and the share of marketplace GMV fulfilled by
Cdiscount rose from 7% in September 2016 to 16% in September
2017.
Net sales
totaled €539 million in the 3rd quarter
2017, reaching a record growth rate of 18.4% on a l-f-l basis
compared to the same period in 2016. The Company's strategic
realignment plan to extend the product assortment and make further
delivery enhancements boosted 3Q17 sales. Fast-growing product
categories included IT goods (+24% in direct sales thanks to
upgrading and additional product offerings), home appliances (+18%)
and hi-tech (+18%). A positive impact also came from the
reinforcement of repeat purchase categories such as pet, childcare
and organic. Home furnishings and household appliances accounted
for 48% of direct sales, while hi-tech items (AV and smartphones)
and IT goods represented 35%.
According to Gfk, Cdiscount
expanded its market share in Technical Goods (Hi-tech, Computers
and Home Appliances) with y-o-y market share gains of respectively
1.9 pt and 1.0 pt in value and 3.5 pts and 2.0 pts in volume in
July and August.
Traffic at
Cdiscount.com during the 3rd quarter of
2017 grew by 15.6% y-o-y to 222 million visits.
The mobile
share of traffic increased y-o-y by 558 basis points to 59.8%
in the 3rd quarter
2017.
The number of active customers amounted to 8.6 million, a y-o-y
increase of 8.3%. Membership of Cdiscount à volonté (CDAV),
Cdiscount's customer loyalty program, continued to expand,
increasing by 66% compared to September 2016.
Cdiscount further reinforced its
social media profile with strong commitment in terms of likes,
shares and comments and a quick best-in-class response time.
According to a Brandwatch Analytics survey published in September,
Cdiscount ranks first among main e-retailers
in France in terms of social media visibility
and commitment.
Orders
totaled 6.2 million during the 3rd quarter of
2017, a y-o-y increase of 9.2%. CDAV customers accounted for 29.2%
of the 3rd quarter 2017
orders compared to 21.4% during the same period in 2016.
The number of
items sold increased to 11.9 million from 11.1 million during
the same period in 2016 (up 7.1%).
Strategic
Realignment Plan Progress Report
The Group has made rapid progress
on its wide ranging growth plan (product catalogue expansion,
multichannel and delivery enhancements and technological
advantages) launched in the 1st semester of
2017.
Product catalogue
expansion:
-
Cdiscount's product range extension program
(designed to almost quadruple the number of CDAV-eligible direct
sale references and increase marketplace references by 50% vs end
2016) is well on track. As of the end of September 2017, Cdiscount
essentially tripled the number of its own SKUs and the number of
marketplace references already increased by 50% vs end 2016.
-
To accommodate the increasing size of its
product range, Cdiscount opened in early September a new 60,000 m²
DC located in Réau, near Orly airport.
Multichannel offer reinforcement:
As announced in
Cnova's 1H17 results release, in addition to Cdiscount's inventory,
Cnova is now managing the hi-tech, home furnishing and
household appliance inventories of Géant supercenters and Casino
integrated supermarkets (collectively, DCF), providing also
immediate in-store availability. This new arrangement generated €50
million net sales in 3Q17.
Main
enhancements in 3Q17 in multichannel offer included:
-
Extension from 1,500 in July 2017 to 5,000 end
of September 2017 of the number of SKUs eligible for immediate
in-store pick-up.
-
Increased synergies with DCF through combined
promotions and commercial events.
-
Reinforcement of Cdiscount presence in DCF
stores: Cdiscount corners in Géant supercenters and Casino
supermarkets, tablets presenting Cdiscount product catalogue,
recommendations from customers and pre-sales advice service.
-
On September 21, 2017, as a first step, opening
of a showroom in Géant supercenter in Fenouillet shopping center
(near Toulouse): 250 m² dedicated to Cdiscount home product
offerings with 4 distinctive styles and around 600
references.
Delivery and
logistics enhancements:
-
Same-day delivery: in addition to large products
(>30 kg), Cdiscount now offers same-day delivery of its small
and medium products (<30 kg) catalogue to its customers in
Paris. As such, Cdiscount is currently the only player in France
offering same-day delivery in Paris on all products. Same-day
delivery will be extended to 5 major cities in the upcoming
months.
-
Sunday delivery: after exclusively testing
Sunday delivery with Chronopost for small and medium products in
Paris since last year, Cdiscount will be the first to offer this
service in 15 major French cities before year end.
-
Large product Delivery Express by appointment
(selection of a 2 to 4-hour window) is now available in the 12
largest French cities.
-
Acceleration of product shipment by one full day
for non-CDAV members.
-
Innovation: Cdiscount has launched the incubator
"The Warehouse" with five selected start-ups to help further its
transformation into a 4.0 supply chain. Main logistics and delivery
challenges addressed will include further automation of DCs,
reduction of drudgery at work, increased flexible in delivery and
additional services to the customer.
-
Automation: implementation of a second new
3D-packing machine, optimizing DCs productivity.
Technological
advantages:
-
Personalized front page and offer on sites and
application based on browsing history and geolocation.
-
Implementation of augmented reality on mobile
app, allowing to virtually see products in their actual size.
-
Addition of Voice Search on Cdiscount
application.
New revenue
streams:
-
Acceleration of Fulfillment-by-Cdiscount (FBC):
GMV share has more than doubled year-on-year while the number of
vendors increased by nearly 60% and SKUs more than tripled.
-
Launch of a short-term (< 90 days for up to
€2,500) instant consumer credit offer ("Coup de pouce") which is
enjoying a strong initial commercial performance.
Third Quarter Activity
Cnova N.V. |
Third
Quarter(1) |
Change |
2017 |
2016 |
Reported(1) |
L-F-L(2) |
GMV(3)
(€ millions) |
841.6 |
680.6 |
+23.6% |
+14.9% |
Marketplace
share |
31.2% |
33.4% |
-217 bp |
CDAV share |
32.2% |
24.0% |
+816 bp |
Net sales (€ millions) |
538.5 |
413.9 |
+30.1% |
+18.4% |
Traffic (visits in
millions) |
222.3 |
192.4 |
+15.6% |
Mobile
share |
59.8% |
54.2% |
+558 bp |
Active customers(4)
(millions) |
8.6 |
7.9 |
+8.3% |
Orders(5)
(millions) |
6.2 |
5.7 |
+9.2% |
CDAV share |
29.2% |
21.4% |
+781 bp |
Number of items sold (millions) |
11.9 |
11.1 |
+7.1% |
-
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 (l-f-l): figures
have been adjusted the following way to make them comparable across
periods: i) exclusion of operating data related to the specialty
sites Comptoir des Parfums, Comptoir Santé and MonCornerDéco due to
their sale or closure in 2016, ii) exclusion of B2B operating data
due the voluntary pullback of their sales beginning in the 3rd
quarter of 2016, iii) adjustment of the impact of one additional
week of summer sales in 3Q17 vs 3Q16 (+1.0 pt and +1.1 pt on GMV
and net sales growth, respectively) and iv) exclusion of Cdiscount
sales made to Casino clients in France which resulted from the
multichannel agreement with Casino effective June 19, 2017 (+8.9
pts and +12.2 pts on GMV and net sales growth,
respectively).
-
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
September 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 8.6 million
active customers via its state-of-the-art website, Cdiscount. Cnova
N.V.'s product offering of more than 30 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.
***
Cnova Investor Relations Contact:
investor@cnova.com
Tel: +31 20 301 22 40 |
Media contact:
audrey.donazzolo@cdiscount.com
Tel: +33 5 56 30 07 14 |
[1]
Like-for-like (l-f-l): figures have been adjusted the following way
to make them comparable across periods: i) exclusion of operating
data related to the specialty sites Comptoir des Parfums, Comptoir
Santé and MonCornerDéco due to their sale or closure in 2016, ii)
exclusion of B2B operating data due the voluntary pullback of their
sales beginning in the 3rd quarter of
2016, iii) adjustment of the impact of one additional week of
summer sales in 3Q17 vs 3Q16 (+1.0 pt and +1.1 pt on GMV and net
sales growth, respectively) and iv) exclusion of Cdiscount sales
made to Casino clients in France which resulted from the
multichannel agreement with Casino effective June 19, 2017 (+8.9
pts and +12.2 pts on GMV and net sales growth, respectively).
[2] According
to a Brandwatch Analytics survey published in September, based on
the volume of comments, shares, discussions on social media
(social media visibility) and efficiency to
communicate and answer on social media (social
media commitment) of main e-retailers in France.
PR 3Q17 Activity
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
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