CNOVA N.V. Third Quarter 2022 Activity
CNOVA
N.V.Third Quarter
2022 activity &
update
Cnova posted a -15% like-for-like GMV
decrease in Q3 vs. 2021 with a
resilient marketplace at -3 % in
a persistent context of
macro-economic
uncertainties
and disruptions:
- Marketplace GMV: -3% vs. 3Q21 (+7% vs. 3Q19)
- Marketplace GMV share: 52% on average in 3Q22 (+9pts vs. 3Q21,
+12pts vs. 3Q19)
- Marketplace supported by an increase in express delivery share
up to 52% (+7 pts vs. 3Q21)
Long-term growth
strategic pillars
well-oriented:
- Marketplace revenues: €45m in 3Q22 stable vs. 2021 (+26% vs.
3Q19)
- Advertising services: €17m in 3Q22, 2.6% GMV take rate (+0.5pt
vs. 3Q21, +1.4pt vs. 3Q19)
- B2B expansion: 25 clients signed for Octopia’s marketplace
solutions at end 3Q22
Efficiency plan to recalibrate SG&A and CAPEX by
2023 is on track
confirming year-end
target of
+€30m Cnova
reinforces its industrial partnership with Group La
Poste/GeoPost:
- Acquisition by GeoPost of a 95% majority stake in CChezVous,
subsidiary dedicated to the transportation of bulky products, for
€64m1
- Extend collaboration to deliver small parcels throughout
Europe
Cnova's ESG performance
outlined concretely
by:
- 12% of Cdiscount’s Product GMV were made on “more sustainable”
products
- C-Logistics continues implementing
solutions to reduce the environmental impact of its logistics
- Cdiscount was again awarded for its Gender Parity policy
|
AMSTERDAM – October 20, 2022, 07:45 CET
Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”)
today announced its third quarter 2022 activity.
During the 3rd quarter of 2022, in a
context still marked by uncertain macro-economic conditions and
inflation headwinds, Cnova’s overall GMV decreased
by -15%
on a like-for-like basis, compared to a high
comparison base in 2021, with a strong mix improvement towards
marketplace driving advertising services revenues
expansion.
Marketplace GMV decreased by
-3% in the
3rd quarter of 2022 but
increased by +7% vs.
pre-pandemic level of 2019 while its revenues increased by
+26% over the last 3 years. The strategic mix improvement towards
marketplace brought its GMV share up to 52% in the 3rd quarter, a
more than +9pts increase in just a year. This result was supported
by the Fulfilment by Cdiscount and Cdiscount Express Seller
marketplace GMV share reaching a record high level of 52% in the
3rd quarter, increasing by +7pts vs. 2021, and dedicated
co-financed promotions from top sellers.
Advertising services
revenues reached
€17m in the 3rd
quarter of 2022 now representing nearly 2.6% of Product GMV, an
increase of +0.5pt vs. 2021, driven by Cnova’s in-house bidding
platform: Cdiscount Ads Retail Solution (“CARS”) revenues increased
by +22% in the 3rd quarter compared to 2021.
B2B
investments began to
yield positive results with Octopia
Marketplace and
Mechants-as-a-Service
solutions gaining traction and
now accumulating 25 clients of which 9 are already live, proving
the quality and competitiveness of its all-in-one
solution.
Last quarter, Cnova announced the
implementation of an Efficiency Plan aiming at
swiftly recalibrating its cost structure & capex
level to the current volume of activity. The plan
triggered €75m of projected
savings on a full-year basis by the end of 2023,
at the end of the 3rd quarter, the execution is on-track to deliver
the expected savings of €30m in the 2nd half of the
year.
Emmanuel Grenier, Cnova’s CEO,
commented:
“In the 3rd quarter of 2022, while
facing continuous adverse market conditions, Cnova’s priority was
to successfully deliver its Efficiency Plan, which is on-track with
targets, and to keep investing in its core strategic pillars:
marketplace share has increased tremendously and reached a record
high, advertising services are fast increasing their penetration in
GMV. Octopia is dynamic and developing well.”
Third Quarter
2022 Key
Figures
|
Cnova N.V. |
Third Quarter2 |
Change |
|
2022 |
2021 |
Reported |
L-f-L3 |
|
Key operational metrics |
|
|
|
|
|
Traffic (million visits) |
228.3 |
247.4 |
-7.7% |
|
Orders4 (million) |
5.3 |
6.4 |
-16.8% |
|
o/w Marketplace |
4.0 |
4.2 |
-4.3% |
|
Items sold (million) |
8.7 |
11.0 |
-21.5% |
|
o/w Marketplace |
6.0 |
6.1 |
-1.5% |
|
Key financial figures (€m) |
|
|
|
|
|
Total GMV |
778.8 |
1,006.4 |
-22.6% |
-15.3% |
|
Ecommerce platformo/w Direct sales |
755.2 |
984.1 |
-23.3% |
-15.8% |
|
305.0 |
450.7 |
-32.3% |
|
o/w Marketplace |
332.4 |
342.2 |
-2.9% |
|
Marketplace share5 |
52.2% |
43.2% |
+9.0pts |
|
o/w Advertising services |
19.8 |
19.8 |
-0.2% |
|
o/w Services |
33.7 |
75.2 |
-55.2% |
+36.5% |
|
o/w Other revenues |
64.4 |
96.2 |
-33.1% |
+8.1% |
|
B2B activities |
23.6 |
22.3 |
+5.9% |
|
o/w Octopia |
22.4 |
22.1 |
+1.1% |
|
o/w C-logistics6 |
1.3 |
0.2 |
x6.9 |
|
Total Net Sales |
378.8 |
525.6 |
-27.9% |
-23.4% |
Third Quarter
2022
Highlights
|
GMV |
3Q22 |
| Total
like-for-like2 growth |
-15.3% |
| Marketplace
growth |
-2.9% |
| Travel
growth |
+37.9% |
| Octopia
growth |
+1.1% |
GMV posted a resilient -15.3% like-for-like decrease in
the 3rd quarter 2022 compared to a high comparison base. This
year-on-year change was driven by:
-
Direct Sales contributing -14.5pts (-32.3%
y-o-y), as a result of the on-going
voluntary strategic shift
to marketplace, mostly
for low contribution margin non-technical
goods, but preserving and still
benefiting from strengthened relationships with top international
brands.
-
Marketplace contributing -1.0pt (-2.9%
y-o-y) while delivering +9pts in GMV share. Cnova raised quality
standards through better delivery services with 52% free express
delivery share in the 3rd quarter and co-financed promotion
initiatives with top sellers.
-
B2C Services
contributing +1.0pt (+36.5% y-o-y), among which Travel alone
brought +0.8pt to Cnova growth (+37.9% y-o-y).
-
Octopia has neutral contribution (+1.1% y-o-y).
Products-as-a-Service historical retail offer was impacted by
current ecommerce market headwinds in Europe (-15.7% vs. 2021)
compensated by Fulfilment-as-a-Service offer which continued to
accelerate (+79.5% vs. 2021 compared to a year-on-year increase of
+26.1% in the 2nd quarter 2022).
|
Marketplace |
3Q22 |
Change vs. 3Q21 |
| Marketplace
product GMV share4 |
52.2% |
+9.0 pts |
| Marketplace
Fulfilment + Express sellers GMV share |
52.4% |
+7.2 pts |
| Marketplace
revenues |
€44.7m |
+0.2% |
| Advertising
services Product GMV take rate7 |
2.6% |
+0.5 pt |
Marketplace posting a
30pts growth differential against first party sales vs. the same
period last year, decreasing overall by -2.9%. Raised quality
standards, with NPS up 1.6pts y-o-y to 51 in the 3rd quarter, led
to a fast-increasing marketplace GMV share this quarter up to
52.2%. As part of this strategy, Fulfilment by Cdiscount and
Express seller program continued to be very dynamic now
representing 52.4% of marketplace GMV in the 3rd quarter, an
increase of 7.2 pts vs. last year.
|
Clients |
3Q22 |
Change vs. 3Q21 |
| Active
clients |
8.8 |
-14.5% |
| CDAV
subscribers base (m) |
2.5 |
+2.9% |
| CDAV GMV
share |
44.4% |
+3.1pts |
Our loyalty program
Cdiscount à
Volonté (CDAV) customer
base grew by
+2.9%,
reaching 2.5 million members. CDAV represented 44.4% of total GMV
in the 3rd quarter 2022, an increase of +3.1pts vs. 2021. CDAV
members show three times more purchase recurrence and loyalty than
non-CDAV clients.
| Net
Sales |
3Q22 |
| Total
like-for-like2 growth |
-23.4% |
Net Sales amounted to
€378.8m, i.e. a -23.4% like-for-like decrease vs. 3rd quarter 2021.
This decrease is primarily driven by the voluntary mix improvement
towards marketplace especially for non-technical goods categories
with negative contribution margin.
Business Highlights
Fast expanding marketplace GMV
share and stable
Marketplace revenues with
accelerated positive trends compared to
pre-pandemic level
- The Marketplace decreased
by -2.9% in the 3rd quarter vs. last year but grew by 7.1% over the
last 3 years with raised quality standards applied to merchants and
a record high NPS of 51 in the 3rd quarter (+1.6pts vs.
2021).
- This led to a 52.2%
Marketplace GMV share in the 3rd quarter 2022, and record-high
increase of +9.0pts.
- Marketplace revenue
generation, supported by Advertising services, was stable
year-on-year but grew by
+25.7%
over the past three years, reaching
€44.7m
in the 3rd
quarter and
€189m at end
September over the last twelve months.
Expansion of marketplace SKUs
eligible to express delivery is a key driver of growth,
customer satisfaction and contributes to the development of our
loyalty program, Cdiscount à Volonté (CDAV), that now encompasses
2.5 million members. It is also determinant to support the product
mix re-orientation towards the marketplace
- Fulfilment by
Cdiscount kept growing at a fast pace, with a +21.4%
increase in the assortment fulfilled for our marketplace sellers
supporting a 38% marketplace GMV share. A consequent effort is made
to provide always more quality by recruiting top sellers with now a
wider assortment than traditional retail sales.
- Cdiscount Express
Seller, launched in 2019 for sellers able to offer express
delivery to CDAV customers, extended its offering compared to the
previous quarter, to reach 3.4 million eligible SKUs, a +65%
increase compared to last year.
B2C Services showed solid
performance while the offer was
expanded
- B2C
Services GMV, excluding Energy, amounted to €33m in the
3rd quarter 2022, up +36% vs. last year.
- Cdiscount
Voyages (travel) experienced a significant growth, posting
a strong +38% GMV growth vs. 2021.
- Cdiscount
Mobile (cell phone plans) experienced a significant
acceleration, posting a strong +50% GMV growth vs. 2021 and
improved margin thanks to product mix evolution.
Dynamic
Advertising services powered by Cdiscount
Ads Retail Solution
- Advertising
services revenues was stable in the 3rd
quarter, despite product GMV decreasing by -16.4%, with a take rate
over product GMV increasing fast to represent now 2.6%, +0.5 pt
compared to last year, reinforcing Cnova’s most profitable
activity.
- The resilient revenues were
supported by Cnova’s proprietary solution launched in the 2nd
quarter 2020, Cdiscount Ads Retail Solution
(CARS), a 100% self-care advertising platform enabling
both sellers and suppliers to promote their products and brands.
Cdiscount was ranked top five as one of the most relevant French
national brands in 2022 for targeted advertising services by a
Kantar media study. This is the result of Cdiscount’s native
sponsored products customer experience driven by AI-powered
algorithms.
Acceleration of Octopia, the
turnkey marketplace solution for EMEA retailers
and e-merchants
- Octopia GMV was stable in
the 3rd quarter as decreasing historical Products-as-a-Service
offer was compensated by strong performance from
Fulfilment-as-Service solution
- The commercial
ramp-up is very promising and still accelerating:
-
Merchants-as-a-Service
and
Marketplace-as-a-Service
solutions already convinced several international players, now
accumulating 25 clients of which 9 are already live.
-
Fulfilment-as-a-Service activity is accelerating
with +79.5% growth in the 3rd quarter compared to 2021 multiplying
by 3 its year-on-year growth rate compared to the 2nd quarter of
2022.
C-Logistics reinforces its
industrial partnership with Group La Poste/GeoPost through
the acquisition by GeoPost of a majority stake in CChezVous,
C-Logistics' subsidiary dedicated to the transportation of bulky
products, for a consideration of 64 million euros. Both parties
agreed to extend their collaboration to deliver small parcels
throughout Europe, enabling C-logistics to accelerate its
international expansion, reinforcing Cnova’s B2B strategic
pillar.
Cnova continues
its action plan in favour
of a more sustainable
e-commerce:
- “More sustainable” products
(energy-efficient and more repairable products, products certified
by recognised labels, Made in France and refurbished products)
continue to appeal to consumers and reached 12% of Cdiscount’s
product sales in Q3 2022.
- C-logistics
continues implementing solutions to reduce the environmental impact
of its logistics:
- Deliveries made with alternative
means of transportation increased by x1.7 yoy for the last
kilometers on light parcels
- More than 70k SKUs are now eligible
to Hipli’s packaging solution, a French start-up developing
reusable packaging
- Cdiscount has reduced its
energy consumption by -13.5% in 2021 compared to 2019 and announced
a -21% reduction by 2023. Measures to reach this goal will range
from reduced energy consumptions in the offices and warehouses to
employee awareness campaigns.
- Cdiscount was awarded the
#1 price on gender parity by LSA’s 2022 ranking. This trophy
rewards the company’s gender parity policy as well as its 3-years
partnership with Make.org.
***
About Cnova
N.V.
Cnova N.V., the French ecommerce leader,
serves 8.8 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 |
Media
contact:directiondelacommunication@cdiscount.comTel: +33 6
18 33 17 86 |
***
1 Amount subject to potential closing
adjustments.2 All figures are
unaudited3 Like-for-like figures exclude
cross-canal sales and Cdiscount Energy GMV for 3Q21 and
3Q224 Total placed orders before cancellation due
to fraud detection and/or customer non-payment5
Calculated as marketplace GMV divided by total product GMV
(Marketplace GMV + Direct sales GMV)6 CChezVous
B2B net sales not included after disposal to Geopost of a 95%
majority stake7 Calculated as advertising services
revenues divided by total product GMV (Marketplace GMV + Direct
sales GMV)
- Cnova NV_Activity Press Release_3Q22
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