Cnova N.V. : 1Q19 Activity
April 12 2019 - 1:44AM
CNOVA
N.V.
First Quarter 2019 Activity
AMSTERDAM - April 12, 2019, 07:45
CEST - Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392)
("Cnova") today announced unaudited operating data for the quarter
ended March 31, 2019.
-
1Q19: +9.2% vs 1Q18: +6.1%
-
More diversified organic growth
-
Driven by marketplace (+3.7pts growth
contribution), B2C services (+2.9pts contribution) and showrooms
(+2.9pts contribution)
-
22m UMV[2] driven by
the highest market mobile growth in January (+28%)
-
CDAV: +16% y-o-y membership, 34.8% GMV share
(+1.1 pts vs 1Q18)
-
x2 IT teams dedicated to Artificial Intelligence
in the last 2 years
-
x3 enhancement in profitability of real-time
personalized promotions
-
NoMagic.AI self-learning picking arm 100%
operational
-
Success of logistics & marketing incubators
(The Warehouse & Le
Lab) with 100+ applications
Emmanuel Grenier, Cnova CEO, commented:
"Beginning of the
year continued along the same dynamic and supported by the trends
observed in Q4 which again shows the relevance of our 2018
strategic initiatives: a booming marketplace, very strong
performance of B2C services platform especially travel, development
of international sales and roll-out of showrooms.
This first
quarter also marked a significant acceleration in innovation across
all our business lines with the launch of "Le Lab" marketing
incubator, the success of Agrikolis partnership among the
2nd round
selection of The Warehouse and Nomagic.AI self-learning arm which
is now fully operational. Throughout the rest of 2019, we intend to
push our artificial intelligence technological edge with a focus on
customer experience enhancement and operational performance
improvement."
1st Quarter 2019
Highlights
Organic GMV
(gross merchandise volume) posted an increase of +9.2% in the
1st quarter 2019
versus the same period in 2018. GMV growth was notably driven by
the marketplace (+3.7 pts contribution to organic growth), B2C
services such as travel and energy (+2.9 pts contribution) and
Géant showrooms (+2.9 pts contribution). The 1st
quarter also benefited from successful winter sales and the 3
"Cdiscount Days" weeks in March with more than 700 attractive
deals. Among B2C services, the popularity of travel services
exceeded expectations with a GMV that nearly tripled over the
1st quarter 2019
compared to the previous quarter.
The
marketplace acceleration remains a key
priority for 2019 to achieve Cdiscount's profitable growth
objectives. Marketplace GMV share reached 35.8% in the 1st quarter
2019, an increase of +3.2 points. The GMV fulfilled by Cdiscount
again experienced a very high +46% growth and gained +5.2 points in
marketplace GMV.
Net sales
amounted to €527 million in the 1st quarter
2019, a +4.4% organic growth compared to the same period in 2018.
The profitable marketplace strategic expansion, which displaces a
certain amount of direct sales revenue (essentially only
marketplace commission fees are included in total revenue) and the
structural decrease in Géant non-food sales[4] have
been more than compensated by the successful introduction of new
revenue streams coming from showrooms and more diversified
monetization initiatives.
Traffic at
Cdiscount totaled 255 million visits in the 1st
quarter 2019, representing the increasing use of mobile, where traffic grew by +15% y-o-y, representing
68% share of total traffic (+5.7 points) and 45.5% of the GMV (+5.0
points). Since the beginning of 2019, Cdiscount consolidated its #2
status in terms of unique monthly visitors ("UMV") on both desktop
and mobile platforms, supported by the highest market growth at
+11% y-o-y overall and +28% on mobile. The gap over the
#3[5] increased
up to 2 million UMV. In addition, the Cdiscount app downloads
increased by +18% y-o-y.
Cdiscount's loyalty program,
Cdiscount à Volonté ("CDAV") grew its
subscriber base by +16% and reached 34.8% of the GMV.
As part of its marketing strategy
and best-in-class client experience, Cdiscount is always
strengthening its bond with customers. On the main
social media, in addition to its extensive 2.9 million fan base
(+27% y-o-y), Cdiscount continues to work on developing its
specialized communities, with thematic pages successfully developed
around Gaming (210k fans, x2 y-o-y), Home & Decoration (600k
fans) and more recently, Travel (already more than 80k fans).
Key Business
Highlights
Development of
the marketplace and its associated services
-
The marketplace is at the heart of our profitable growth strategy, being a key component of
our platform of products and an essential
contributor to our monetization
initiatives.
-
The marketplace gained +3.2
points in total GMV share to reach 35.8%. This double-digit
growth was supported by the strong performance of Hi-Tech (+20%
GMV) and small Home products (+33%).
-
The number of SKUs available was up +30% to
reach 52 million at the end of March 2019.
-
The Fulfillment by Cdiscount service pursued its fast
development: GMV fulfilled by Cdiscount increased by 46% and gained
+5.2 points in marketplace GMV share.
-
Marketplace vendor value added
services are still progressing at a fast pace, enhancing
vendors' loyalty and boosting their sales while improving customer
satisfaction:
-
Premium Packs (bundled
offers of services) revenue grew by +83%.
-
Marketing activity
(Cdiscount Ads) experienced a strong +60% growth, with the launch
of two new client acquisition products, based on machine learning
algorithms.
-
Cdiscount
Transport now gives access to Cdiscount's most loyal CDAV
clients, while leaving the inventory management in the hands of the
vendors.
Ramp-up of the
B2C services platform
-
Cdiscount
Energie subscriptions continued to expand at a double-digit
rate in the 1st quarter
2019. GMV increase represented a multiplying factor of 2.4 compared
to the same period last year.
-
Cdiscount
Voyages (travel) posted an outstanding performance,
tripling its GMV in the 1st quarter 2019
compared to the
previous
one.
-
Cdiscount
Billeterie (ticketing), launched at the end of 3Q18, keeps
expanding its offer through new partnerships with Billetreduc and
Funbooker.
-
Creating synergies with its recently acquired
company Stootie, whose extensive service
offerings are now available on Cdiscount website (booking of
peer-to-peer day-to-day services from
handiwork assistance to gardening).
Enhanced customer experience and
multichannel strategy
-
CDAV experienced a +16% membership growth and
kept expanding its CDAV-eligible SKUs.
-
9 new Cdiscount showrooms
opened in Géant hypermarkets in the 1st quarter
2019, bringing the total network to 58 at the end of March.
Monetization
initiatives well advanced
-
Marketplace B2B services,
such as Premium Packs and Cdiscount Marketing, grew by +35%.
-
Commission-based B2B2C
services brought five times more revenues than
last year, driven by the expansion of Cdiscount
Energie, Cdiscount Voyages (travel) et
Cdiscount Billeterie (ticketing).
-
Financial services
experienced a great success in 1Q19: +34% y-o-y for new credit
cards granted and +14% y-o-y for Coup de Pouce
instant short-term credit new clients.
Rapid expansion of Europe-wide
deliveries now covering 20 countries
-
Direct deliveries in
neighboring countries: growing at a fast pace driven by Belgium
performance and an extensive assortment of 32 million
products.
-
European marketplaces: 11
marketplaces (+8 vs end 2018) are now operated directly through
Cdiscount as a vendor with an ambitious mid-year target.
Innovation in
constant progress across all fields
-
Artificial Intelligence
acceleration plan first achievements:
-
IT teams dedicated solely dedicated to Artificial Intelligence development were multiplied by
2 in the last 2 years among a solid pool of more than 700
engineers.
-
Customer experience & personalization:
real-time personalized promotions, which
improved by 3 times the profitability of Cdiscount vouchers.
-
Operational performance: the startup NoMagic.AI has completed its acceleration phase within
The Warehouse (Cdiscount's logistics incubator) and is now fully
operational. NoMagic.AI is a robotic arm powered by AI,
self-learning how to recognize and adapt to the shape and material
of the object to be picked.
-
Attractivity and success of
Cidscount's incubators
-
The warehouse logistics
incubator: after a 2018 promotion which proved to be very
successful with 3 out of 5 selected startups already implementing
their solution, 2019 promotion of 5 new startups started with the
early success of Agrikolis and other achievements to come.
-
Launch of Le Lab, a
marketing innovation lab dedicated to startups
in the areas of purchase experience, new consumption habits and
community-based trade, with a transversal focus on data. The call
for projects was launched in February 2019 and has already
attracted a record number of more than 100
applicants. Selected projects will benefit from Cdiscount's
expertise as well as a whole data eco-system to experiment, build
and test their solutions.
-
Logistics: rolling-out of a
new 3D packing machine, bringing the total to
4. These machines reduce parcel wasted space and cardboard usage by
30% reducing at the same time transport cost by optimizing shipping
space. Cdiscount now manages to pack 85% of its orders without any
empty space.
-
Corporate Social
Responsibility: opening of 7 farm picking-points in partnership
with Agrikolis, a startup part of The
Warehouse second promotion. This new kind of picking points is used
to deliver heavy products in remote rural areas while adding
revenue to farmers and fostering social bonds between customers and
local producers. Cdiscount plans on rolling-out its Agrikolis
network throughout 2019.
First Quarter
Activity
Cnova N.V. |
First
Quarter(1) |
Change |
2019 |
2018 |
Reported(1)(2) |
Organic(3) |
GMV(4)
(€ millions) |
906.3 |
853.9 |
+6.1% |
+9.2% |
Marketplace
share(5) |
35.8% |
32.6% |
+319 bp |
Mobile
share |
45.5% |
40.6% |
+ 495 bp |
CDAV share |
34.8% |
33.7% |
+109 bp |
Net sales(5)
(€ millions) |
527.0 |
524.2 |
+0.5% |
+4.4% |
Traffic (visits in
millions) |
255.3 |
242.7 |
+5.2% |
Mobile
share |
68.4% |
62.7% |
+574 bp |
Active customers(6)
(millions) |
9.1 |
8.6 |
+5.2% |
Orders(7)
(millions) |
6.5 |
6.5 |
+0.1% |
CDAV share |
35.9% |
33.6% |
+226 bp |
Number of items sold (millions) |
12.2 |
12.2 |
+0.0% |
-
All figures are
unaudited.
-
Reported figures present all
revenue generated by Cdiscount, including the technical goods sales
realized in Casino Group's hypermarkets and supermarkets.
-
Organic growth: figures exclude
(i) sales realized in Casino Group's hypermarkets and supermarkets
on technical goods and home category (total exclusion impact of
+4.4 pts and +5.6 pts, respectively, on GMV and net sales in 1Q19),
and (ii) 1001Pneus & Stootie acquisitions during 4Q18 (total
exclusion impact of -1.3 pt and -1.7 pt on GMV and net sales in
1Q19) but take into account showroom sales.
-
GMV (gross merchandise volume)
is defined as: all taxes included, product sales + other revenue +
marketplace business volumes (calculated based on approved and sent
orders) + GMV services.
-
Marketplace GMV shares have
been adjusted to take into account coupons and warranties and
exclude CDAV subscription fee. 1Q18 GMV share has therefore been
adjusted by +0.1pt for comparison purposes.
-
Active customers at the end of
December having purchased at least once through Cdiscount sites and
app 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 9.1 million
active customers via its state-of-the-art website, Cdiscount. Cnova
N.V.'s product offering provides its clients with a wide variety of
very competitively priced goods, fast and customer-convenient
delivery options, practical and innovative payment solutions as
well as travel, entertainment and domestic energy services. 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@cnovagroup.com
Tel: +31 20 301 22 40 |
Media contact:
directiondelacommunication@cdiscount.com
Tel: +33 5 56 30 07 14 |
[1] Organic
growth: figures include showroom sales and services; exclude
technical goods and home category sales made in Casino Group's
hypermarkets and supermarkets (total exclusion impact of +4.4 pt on
GMV growth) and 1001Pneus/Stootie GMV, companies acquired in 4Q18,
(total exclusion impact of -1.3pt on GMV growth)
[2] Unique
Monthly Visitors, source Médiamétrie in January 2019
[3] Marketplace
GMV shares have been adjusted to take into account coupons and
warranties and exclude CDAV subscription fee. 1Q18 GMV share has
therefore been adjusted by +0.1pt for comparison purposes
[4] From June
2017, Cdiscount has been managing the Hi-tech and Home Furnishing
product categories of Géant hypermarkets and Casino integrated
supermarket as part of their multichannel strategy
[5] January
Médiamétrie study.
Cnova N.V. : 1Q19
Activity
This
announcement is distributed by West Corporation on behalf of West
Corporation 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