Cnova NV: First Quarter 2024 Activity
CNOVA N.V.First Quarter
2024 activityUpdate on Casino group
situation
|
Cnova pursues its path towards a more profitable
modelwith an EBITDA after rents growing by +36%
and free cash-flows improving by +€49m vs. 1Q23 |
|
|
-
Like-for-like Overall GMV decreasing by -12% vs.
23, slightly improving compared to 4Q23, despite some
unfavorable comparison base effect from 2023 destocking campaigns
and in a still challenging market for Home & Technical
Goods
-
Like-for-like Net sales decreasing by -21% vs. 23
as a result of GMV decrease and the continuous strategic shift to
the marketplace now totaling 63.8% of the Product GMV (+7.1pts vs.
23)
- Services
revenues amounting to €77m
increasing by +4% vs. 23, representing 31.7% of
overall net sales, growing by +7.5pts vs.
231, supported by resilient
Marketplace and Advertising revenues along with
fast-increasing B2B revenues by +90% vs. 23,
driven by Octopia B2B solutions and C-Logistics third-party
services
-
SG&A2 positively
impacted by the Efficiency Plan full-year effects,
improving by +€13m vs. 23
- EBITDA
after rents increasing by +€2m in the 1st quarter 2024 vs.
23, growing by +36%, thanks to Cnova’s turnaround
towards a more profitable model
- Free-cash
flows before financial interests improving by
+€49m in the 1st quarter 2024 vs. 23
- Continuous
development of Cnova’s CSR strategy
- Growth of
“More sustainable products”
share: 20% of Cdiscount Product GMV (+4.6pts vs.
23)
- Reduction
of delivery GHG emissions by 35%3
- Strong NPS
growing by +1.2pt vs. 23, with Marketplace NPS increasing
by +2.5pts vs. 23
|
AMSTERDAM – April 24, 2024, 17:35 CET Cnova N.V.
(Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”) today announced
its first quarter 2024 activity.
Thomas Métivier, Cnova’s CEO,
commented:
"In the first quarter, Cnova remained steadfast
in its strategy. We have kept increasing revenues from our services
while maintaining rigorous cost control, resulting in a significant
improvement in profitability and free cash flow.
Achieving a new marketplace share record and
witnessing strong performance in B2C services such as travel,
alongside our more responsible offerings, growing +13% in the
quarter, reaffirms our robust position to address evolving consumer
needs and trends. Particularly noteworthy is our ability to support
consumers amidst inflationary pressures, by safeguarding their
purchasing power and supporting their shift towards more
sustainable consumption patterns.
March 27 marked the beginning of a new era with the change in
control of the Casino Group, empowering its various banners,
especially Cnova, to persist in innovation and create more value
for our customers.”
Over the 1st quarter, Cnova has pursued its
efforts to improve its operational profitability,
as illustrated by the gross margin rate growing by
+5.3pts vs. 23 and EBITDA after rents increasing
by +35.7%.
In a still challenging market impacted by
stagnating overall consumption and declining High Tech & Home
consumption trends, overall GMV has decreased by
-12.3%4 vs. 23 and net sales have
declined by -20.6%4 vs.
23, impacted by Cnova’s shift towards a more profitable model.
Cnova’s services revenues stood
at €77m in the 1st quarter 2024, increasing by +4.2% vs.
23, with:
- Marketplace
generating €46m revenues5 in the
1st quarter 2024, with
Marketplace GMV share reaching 63.8% (+7.1pts vs. 23, +27.5pts vs.
19) and improving Marketplace contribution margin6
- Advertising
net revenues7 remaining
resilient, standing at €16m in the 1st quarter 2024, with
growing Retail Media (+7.8% vs. 23), mostly driven by Marketplace
sellers (+10.3% vs. 23). Advertising GMV take rate reached 4.3% in
the 1st quarter 2024 (+0.5pt vs. 23, +3.1pts vs. 19)
- B2C
Services GMV performing well, increasing by +7.9% vs. 23,
reaching €39m in the 1st quarter 2024, mostly driven by Mobile
(+42.3% vs. 23) and Travel activities (+1.4% vs. 23)
- Octopia B2B
revenues improving by +34.7% vs. 23, standing at €6m in
the 1st quarter 2024, with growing Fulfilment-as-a-Service
activities (+17.5% vs. 23) and increasing Marketplace-as-a-Service
and Merchants-as-a-Service revenues (x3 vs. 23) with 2 clients
launched, and 2 clients signed for Merchants-as-a-Service solutions
in the 1st quarter
- C-Logistics
B2B revenues multiplying by 3 vs. 23, reaching €6m in the
1st quarter 2024, with the number of parcels shipped for external
clients increasing by x3 vs. 23. Over the 1st quarter 2024,
C-Logistics has launched two clients, respectively specialized in
luxury goods and pet food
EBITDA after rents has increased by
+35.7% thanks to our resilient Advertising revenues,
increasing Marketplace GMV share and our focus on boosting
profitable products for the direct sales business, along with
Efficiency Plan full-year effects on operational costs. As a
result, EBITDA after rents as a % of Net sales has
improved from 1.6% in the 1st quarter 2023 to 2.9% in the 1st
quarter 2024.
Free cash-flows have improved
by +€49m in the 1st quarter 2024 vs. 23, with a structural
improvement of EBITDA after rents, capital expenditures and
financial costs related to 4-installment payments, mostly thanks to
Cnova’s business model transformation, along with an improved
change in working capital compared to the 1st quarter 2023, partly
offset by greater non-recurring items mostly related to warehouse
rationalization.
Update on Casino group
situation
On March
28th, 2024, Casino
announced the effective completion of its financial restructuring,
resulting in a change of control of Casino group to France Retail
Holdings S.à.r.l. ("FRH"), an entity ultimately controlled by Mr.
Daniel Křetínský. All transactions provided for in the Accelerated
Safeguard Plan have been completed, in particular the capital
transactions described in the press release published by Casino on
March 25th, 2024.
On the same day, Cnova announced a change to its
Board of Directors. The Chairman, non-executive director and member
of the Nomination and Remuneration Committee, Mr. Jean-Yves Haagen,
and Mrs. Josseline de Clausade, non-executive director, resigned
their directorship as per March 27th, 2024.
Pursuant to the completion of the financial
restructuring of Casino group on March 27th, 2024, France Retail
Holdings S.à.r.l. has acquired indirectly (via Casino
Guichard-Perrachon S.A.) 99.27% of the voting rights in Cnova, thus
acquiring predominant control (overwegende zeggenschap) over Cnova.
FRH is a special purpose vehicle set up by a consortium consisting
of EP Equity Investment III S.à.r.l. ("EP"), Fimalac and Attestor,
and is controlled by EP, a company controlled (via EP Equity
Investment S.à.r.l and EP Investment S.à.r.l) by Mr. Daniel
Křetínský.
First Quarter 2024 Key
Figures
|
Financial performance (€m) |
|
1Q23 |
1Q24 |
|
Change vs. 23 |
| |
|
Reported |
Like-for-like9 |
| Total
GMV |
|
712.5 |
605.3 |
|
(15.0)% |
(12.3)% |
|
E-commerce platform |
|
692.7 |
579.8 |
|
(16.3)% |
(13.6)% |
|
o/w Marketplace |
|
329.1 |
315.4 |
|
(4.2)% |
|
o/w Direct sales |
|
251.4 |
179.0 |
|
(28.8)% |
|
Marketplace share |
|
56.7% |
63.8% |
|
+7.1pts |
|
o/w B2C services |
|
36.3 |
39.2 |
|
+7.9% |
|
o/w other revenues |
|
75.8 |
46.3 |
|
(39.0)% |
(14.1)% |
| B2B
activities |
|
19.8 |
25.6 |
|
+29.2% |
|
o/w Octopia B2B revenues |
|
5.1 |
6.9 |
|
+34.7% |
|
o/w Octopia Retail & Others |
|
12.7 |
12.0 |
|
(5.2)% |
|
o/w C-Logistics B2B |
|
2.0 |
6.7 |
|
x3 |
|
Total Net sales |
|
323.5 |
243.4 |
|
(24.8)% |
(20.6)% |
|
|
|
|
|
|
|
|
|
EBITDA |
|
323.5 |
243.4 |
|
(2.6)% |
|
EBITDA after rents |
|
5.1 |
7.0 |
|
+35.7% |
|
Free Cash-Flows8 |
|
(121.2) |
(71.9) |
|
+49.3 |
Operational highlights
Over the 1st quarter 2024, Cnova has pursued its
efforts to extend its direct sales offer with profitable products,
to develop its Marketplace and Advertising services and to grow its
B2B activities.
Facing challenging market conditions, overall
GMV decreased by -12.3% like-for-like9 in the 1st quarter 2024,
confirming Cnova’s strategic choice to develop its service
activities in order to improve operational profitability.
Services revenues represent
€77m in the 1st quarter 2024, improving by +4.2%
vs. 23, representing 31.7% of overall net sales (+7.5pts vs.
238).
|
Business KPIs |
|
1Q23 |
1Q24 |
|
Changevs. 23 |
|
Marketplace10 |
|
47.8 |
45.7 |
|
(4.5)% |
|
Advertising11 |
16.4 |
16.4 |
|
(0.4)% |
| B2C12 |
3.8 |
3.8 |
|
(1.7)% |
|
B2B13 |
5.9 |
11.3 |
|
+90.3% |
|
Services revenues |
|
74.0 |
77.1 |
|
+4.2% |
|
|
|
|
|
|
|
|
Services revenues share in net sales8 |
|
24.2% |
31.7% |
|
+7.5pts |
|
Marketplace GMV share |
|
56.7% |
63.8% |
|
+7.1pts |
1st quarter
highlights
|
GMV |
1Q24 vs. 23 |
| Total GMV
like-for-like13 evolution |
(12.3)% |
| Marketplace
GMV evolution |
(4.2)% |
| Marketplace
GMV share evolution |
+7.1pts |
| Octopia B2B
GMV growth |
+34.7% |
|
B2C services GMV growth |
+7.9% |
In the 1st quarter 2024, Cnova overall GMV
decreased by -12.3% like-for-like14. This year-on-year evolution
was driven by:
-
Direct sales contributing -10.5pts (-28.8% y-o-y),
impacted by our business model transformation from direct sales to
marketplace and assortment rationalization, mostly for products
with low contribution margins. In a difficult e-commerce market,
direct sales were also impacted by lower marketing intensity from
last year as part of the Efficiency Plan, followed by increase in
marketing investments since late 3rd quarter 2023, in order to
increase traffic and transformation
-
Marketplace contributing -2.0pts (-4.2% y-o-y),
with Marketplace GMV share increasing by +7.1pts, standing at 63.8%
in the 1st quarter 2024. Marketplace GMV was also impacted by lower
marketing investments from last year
-
B2C Services contributing +0.4pt (+7.9% y-o-y)
mainly due to Cdiscount Mobile (+42.3% vs. 23) and Cdiscount Travel
(+1.4% vs. 23)
-
C-Logistics B2B contributing +0.7pt (x3 y-o-y)
with an increasing number of shipped parcels for external clients
(x3 vs. 23) and two new clients launched in the 1st quarter
2024
-
Octopia B2B contributing +0.3pt (+34.7% vs. 23),
driven by an increase in Fulfilment-as-a-Service revenues (+17.5%
vs. 23) along with growing Marketplace-as-a-Service and
Merchants-as-a-Service revenues (x3 vs. 23). Octopia launched
Octopia Ads, its new Retail Media solution,
relying on Cdiscount Ads Retail Solution (CARS)
technology
|
Clients |
1Q24 |
|
Active clients over the last 12 months (m) |
7.2 |
|
CDAV GMV share |
38.2% |
The loyalty
program Cdiscount à
Volonté (CDAV) covered 38.2% of
total GMV in the 1st quarter 2024, increasing by +0.6pt compared to
last year. Cnova has diversified its reward mechanisms for CDAV
members, with:
-
A focus on loyalty pots, for instance with the “100% remboursés”
operation, which aims at promoting repurchase from customers
-
The share of fidelity actions dedicated to CDAV members on total
fidelity actions to all clients improving by +60.5pts in the 1st
quarter 2024 vs. 23
Strong focus on customer
satisfaction as illustrated by the NPS standing at
55.7pts in the 1st quarter 2024, growing by +1.2pts compared to
last year, mostly driven by an increase in Marketplace NPS standing
at 54.1pts in the 1st quarter 2024 (+2.5pts vs. 23).
|
Marketplace KPIs |
1Q24 |
vs. 23 |
| Marketplace
GMV share |
63.8% |
+7.1pts |
| Advertising
net revenues from Marketplace sellers (€m) |
10.2 |
+10.3% |
| Total express
delivery GMV share |
51.9% |
+0.6pt |
|
o/w Cdiscount Express Seller GMV share |
13.1% |
(2.7)pts |
|
o/w Fulfilment by Cdiscount GMV share |
38.8% |
+3.3pts |
Despite decreasing GMV by -4.2%, Marketplace
continues to generate well-oriented KPIs:
- Advertising services provided to
Marketplace sellers growing by +10.3% in the 1st quarter 2024 vs.
23, notably thanks to “Discover” offers aiming to recruit new
sellers and boost Advertising services
- The share of products eligible to
express delivery increasing by +0.6pt vs. 23, standing at 51.9% in
the 1st quarter 2024
- Marketplace GMV share growing by
+7.1pts vs. 23 and Marketplace contribution margin as a % of
Marketplace GMV15 improving in the 1st quarter 2024 vs. 23
| Net
sales |
1Q24 vs. 23 |
| Net sales
evolution15 |
(20.6)% |
Net sales16 amounted to €243m,
reducing by -20.6% in the 1st quarter 2024 vs. 23. This decrease is
primarily driven by:
- Decreasing direct sales revenues,
notably driven by the voluntary transformation of our business
model towards a more profitable model, along with impacts from the
decrease in marketing intensity last year as part of the Efficiency
Plan
- Reduced marketplace revenues, also
impacted by the voluntary savings on marketing investments from
last year
- Partly offset by increasing B2B
revenues with Octopia B2B and C-Logistics B2B
Implementation of customer-centric
Generative Artificial Intelligence (“GenAI”)
initiatives
Artificial intelligence-powered algorithms were
implemented all along the customer journey, enabling to enhance the
relevance of the Cdiscount.com search engine, as illustrated by the
increase in the search engine click rate by +3.5pts in the 1st
quarter 2024 vs. 23.
Through Generative Artificial Intelligence
(“GenAI”) initiatives, developing numerous use cases, Cnova
aims at generating more value, enrich customer experience and
improve internal efficiency and processes. These initiatives also
enable Cnova to support Marketplace sellers in promoting their
catalogs and creating their product feature sheets.
To improve its product catalog and
marketability, Cnova has internally developed and deployed specific
GenAI use cases since May 2023:
- Product features enrichment
- Product reclassification
- Product headlines and descriptives
improvement
Environmental, social and societal
stakes such as human capital, climate, business ethics and societal
commitment are at the heart of Cnova’s B2B and B2C strategic
development:
- Cnova is committed to promoting a
more sustainable consumption through its direct sales and
marketplace product offer. Actions carried out by Cdiscount and
Octopia (enlarging the “more sustainable products” assortment,
increasing the visibility of this offer, including these products
in the commercial mechanisms) enabled to reach a share of
sustainable products representing 19.8% of Cdiscount’s Product GMV
in the 1st quarter 2024 (+4.6pts vs. 23)
- Cnova also takes actions to reduce
the impact of its operations, especially its logistics. The action
plan has enabled to reduce the greenhouse gas emissions related to
delivery of products sold by Cdiscount and shipped by C-Logistics
by 35%17
- Finally, Cnova pursues its social
and societal commitment in favor of gender parity. Thanks to its
Human Resources policy, Cnova’s consolidated gender equality index
has increased by +3.5pts vs. 22
***
About Cnova N.V.
Cnova N.V., the French ecommerce leader, serves
7.2 million active customers via its state-of-the-art website,
Cdiscount. Cnova N.V.’s product offering provides its B2C 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 and entertainment services.
Cnova N.V. also serves B2B clients internationally through Octopia
(Marketplace-as-a-Service solutions), Cdiscount Advertising
(advertising services for sellers and brands) and C-Logistics
(end-to-end logistic ecommerce solution). Cnova N.V. is part of
Casino group, 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.comTel : +33 6 79 74 30
94 |
Media
contact:directiondelacommunication@cdiscount.comTel: +33 6
18 33 17 86cdiscount@vae-solis.comTel: +33 6 17 76 79 71 |
***
1 Like-for-like figures exclude Carya and Neosys (disposed)
along with Géant and Cdiscount Pro (discontinued)2 Excluding
depreciation & amortization, including rents3 Comparison
periods: from 1/10/2022 to 30/09/2023 vs. 1/10/2021 to 30/09/20224
Like-for-like figures exclude Carya and Neosys (disposed) along
with Géant and Cdiscount Pro (discontinued)5 Including Marketplace
commissions after price discounts, subscription fee and revenues
from fulfilment services to sellers6 As a % of placed Marketplace
GMV excluding VAT (before cancellation due to fraud detection
and/or customer non-payment)7 Including both revenues from
marketing services to suppliers and sellers8 Defined as EBITDA
after rents - net CAPEX - 4 installment payment financial costs -
other non-current operating expenses - change in working capital -
taxes9 Like-for-like figures exclude Carya and Neosys (disposed)
along with Géant and Cdiscount Pro (discontinued)10 Including
Marketplace commissions after price discounts, subscription fee and
revenues from fulfilment services to sellers11 Including both
revenues from marketing services to suppliers and sellers12
Including Travel, Mobile, CUP cards commissions, warranty services
and others13 Including Fulfilment-as-a-Service,
Merchants-as-a-Service and Marketplace-as-a-Service (Octopia) and
C-Logistics B2B activities14 Like-for-like figures exclude Carya
and Neosys (disposed) along with Géant and Cdiscount Pro
(discontinued)15 Placed Marketplace GMV excluding VAT (before
cancellation due to fraud detection and/or customer non-payment)16
Like-for-like figures exclude Carya and Neosys (disposed) along
with Géant and Cdiscount Pro (discontinued)17 Comparison periods:
from 1/10/2022 to 30/09/2023 vs. 1/10/2021 to 30/09/2022
- Cnova NV_Activity Press Release_1Q24
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