CNOVA N.V. 2022 Fourth Quarter Activity & Full Year Financial
Results
CNOVA N.V.
Full Year 2022
results &
4th quarter
activitySwift start in 2022 of
Cnova’s
transformation
With strong platform
revenues, Cnova
reinforces its shift
towards a profitable
model:
- Sharp increase in
gross margin at 23.2% of net sales (+1.3pt vs. 21, +5.4pts
vs. 19) notably thanks to the GMV mix improvement towards
marketplace: 54% of marketplace share in Q4 (+9pts vs 21),
52% in FY (+6pts vs. 21, +13pts vs. 19)
- Marketplace revenues at €191m, (-2% vs. 21)
growing +28% vs. 19 with solid and regular
increase of GMV take rate1 at 16.2%
(+0.7pt vs. 21, +1.7pt vs. 19)
- Advertising services revenues growing at €71m
(+5% vs. 21, x1.8 vs. 19), with consistent
increase in GMV take rate1 over
the last years reaching 3.1% (+0.7pt vs. 21, +1.6pt vs. 19)
- B2B expansion on-track:
Octopia B2B revenues
reaching €19m (+66% vs 21) with
14 new clients in 2022 for its turnkey marketplace solution to
reach 26 clients at year-end
Efficiency plan to recalibrate SG&A and CAPEX:
€47m savings vs. 21 (+€17m vs. guidance):
- SG&A (excl. D&A) decreasing from €371m
to €342m (-€29m)
- CAPEX decreasing from €98m to €80m
(-€18m)
The accelerated shift to the marketplace model and
the success of the
Efficiency
Plan help secure positive free cash flow
before financial interests of +€15m and a FY 22 EBITDA of
€52m. Appointment of Thomas
Métivier
as CEO to pursue
the Group’s transformation.
|
AMSTERDAM - February 22, 2023, 7:45 CET Cnova
N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”) today
announced its fourth quarter 2022 activity and full-year unaudited
financial results for 2022.
During 2022, Cnova’s
first priority was the
continuous development of its marketplace
and advertising services in a persistent context
of macro-economic uncertainties and disruptions, while
recalibrating its cost
structure to preserve cash and improve
profitability. 2022 also
confirmed the relevant positioning
of its B2B business
model with the commercial acceleration of Octopia and
C-logistics. This mix evolution towards
more platform revenues has driven Cnova’s gross margin up
by more than 5pts over the last 3 years to 23.2% of net sales.
Marketplace
GMV, after reaching more than 50% of
product GMV for the first time in the 2nd quarter of 2022,
continues on its positive trend and now represents 54% of GMV in
the 4th quarter (+9pts vs. last year) with a nearly stable GMV
(-2%) in a receding French ecommerce market. In January and
February 2023, marketplace continues to be dynamic with record high
GMV shares of more than 60% for several days. Over the last 5
years, marketplace has been growing at an annual rate of +7%
supporting Cnova’s first strategic pillar with a GMV share
increasing by +18pts up to 52%.This marketplace development has
been supported by a sharp increase in customer
satisfaction measured by the NPS which
grew by
+3pts compared
to 2021 and
+14 pts
compared to 2019, narrowing the gap with the direct sales
customer satisfaction by 4pts since 2019. The primary lever of this
improvement has been the constant enhancement in marketplace
delivery services: Fulfilment by Cdiscount and Cdiscount Express
Seller orders now cover more than half of marketplace GMV (+20 pts
between 2019 and 2022).Advertising services
revenues reached €71m in the Full Year 2022,
growing +5% compared to 2021 supported by the traction of our
proprietary advertising bidding platform which grew by +29% yoy now
representing two thirds of advertising services
revenues.Overall GMV decreased by
-15% in the Full Year 2022 on a comparable basis impacted by the
direct sales rationalization (-27%) to focus on products generating
more profit and cash. As part of this voluntary strategic move,
direct sales inventories nearly halved at end 2022 compared to last
year end (+€112m positive impact on working
capital).Long-term value creation through
B2B activities
development: Octopia signed 14
new clients in 2022 to reach a total of 26 clients at year-end of
2022 out of which 17 clients are already live on the platform.
C-logistics signed 3 new clients in 2022 to reach
4 clients at year-end for its end-to-end third-party logistic
solution and has already successfully launched 3 of them.In Q2
2022, Cnova launched an
Efficiency
Plan to swiftly recalibrate its cost structure
& capex level to
the current volume of
activity with a €75m savings target on a
full-year basis by the
end of 2023.This efficiency plan already
generated €47m of savings of OPEX and CAPEX in 2022 compared to
2021, overperforming the July 28, 2022 savings guidance by
+€17m.Thanks to those initiatives, Cnova was able to protect
profitability and cash with an EBITDA of €52m and
a positive free cash flow before financial
interests of
+€15m for the
Full Year 2022, an improvement of +€94m compared to last
year.
Thomas Métivier,
Cnova's CEO, commented:
“In 2022, Cnova proved its ability to quicky
adapt to macro-economic disruptions by focusing on our marketplace
and advertising services while reducing our cost structure with
decisions taken as early as Q1. In 2023, we will accelerate the
pace of this transformation, focusing on strengthening our
profitability, growing our marketplace while leveraging on
advertising services and on the commercial success of Octopia and
C-Logistics’ solutions. All those actions will pave the way for
more growth potential and margin expansion in the coming
years.”
Financial highlights
|
Financial performance(€
millions, GMV figures incl. VAT)
|
|
2022Full year |
2021Full year |
|
Change vs. 2021 |
| |
|
Reported |
L-f-L2 |
| Total
GMV |
|
3,497.1 |
4,205.5 |
|
(16.8)% |
(14.5)% |
|
Ecommerce platform |
|
3,395.9 |
4,095.3 |
|
(17.1)% |
(14.7)% |
| o/w Direct
sales |
|
1,340.0 |
1,840.0 |
|
(27.2)% |
| o/w
Marketplace |
|
1,421.0 |
1,517.6 |
|
(6.4)% |
| Marketplace
share |
|
51.5% |
45.2% |
|
+6.3pts |
| o/w
Services |
|
212.1 |
277.8 |
|
(23.7)% |
+43.1% |
| o/w Other
Revenues |
|
422.9 |
459.8 |
|
(8.0)% |
+1.1% |
| B2B
activities |
|
101.1 |
110.2 |
|
(8.2)% |
| o/w Octopia B2B
revenues |
|
22.6 |
13.6 |
|
+66.4% |
| o/w Octopia
Retail & Others |
|
74.3 |
96.1 |
|
(22.7)% |
|
o/w C-Logistics |
|
4.3 |
0.5 |
|
x8.2 |
|
Total Net sales |
|
1,700.2 |
2,162.5 |
|
(21.4)% |
(20.7)% |
|
EBITDA3 |
|
52.0 |
102.7 |
|
(49.4)% |
|
% of Net sales |
|
3.1% |
4.7% |
|
(1.7)pts |
|
% of GMV |
|
1.5% |
2.4% |
|
(1.0)pts |
|
|
|
|
|
|
|
|
Free cash flow figures(€
millions) |
|
Full Year2022 |
Full Year2021 |
|
Changevs. 2021 |
|
|
|
|
EBITDA3 |
|
52.0 |
102.7 |
|
(50.7) |
| (-) cash
non-recurring items |
|
(11.8) |
(8.8) |
|
(3.0) |
| (-) IFRS 16
rents |
|
(35.8) |
(34.7) |
|
(1.1) |
| (+/-) Change in
working capital |
|
+14.6 |
(41.6) |
|
+56.2 |
| (-) Income
taxes |
|
(2.5) |
(3.6) |
|
+1.1 |
| Cash
from continuing operations, incl. rents |
|
16.5 |
13.9 |
|
+2.6 |
| (-) Net
CAPEX |
|
(80.3) |
(92.9) |
|
+12.6 |
| (+) Floa &
CCV disposals cash in |
|
+79.2 |
- |
|
+79.2 |
|
FCF continuing operations before cash from financing
activities |
|
15.4 |
(79.0) |
|
+94.4 |
|
(Net Financial Debt)/Net Cash |
|
(372.5) |
(326.5) |
|
(46.1) |
Full year 2022 operational
highlights
Operational highlights of the Full Year 2022
confirm the successful shift towards Cnova’s marketplace platform
observed since the start of the year with a GMV share increasing by
+6.3pts compared to 2021, a sharp acceleration compared to the
historical average and dynamic advertising services.
| Key
business KPIs |
|
2022Full year |
2021Full year |
|
Changevs. 2021 |
| Marketplace
GMV share |
|
51.5% |
45.2% |
|
+6.3pt |
| Marketplace
revenues (€m) |
191.4 |
195.8 |
|
(2.2)% |
|
Advertising services (€m) |
71.3 |
67.6 |
|
+5.4% |
Focus on
4th quarter
operational highlights
|
GMV |
4Q22 vs. 21 |
| Total
like-for-like GMV growth |
(16.0)% |
| Net sales
like-for-like growth |
(24.0)% |
| Marketplace
GMV growth |
(2.1)% |
| Travel GMV
growth |
+18.5% |
Facing strong inflation headwinds and a changing
macro-economic environment, Cnova
overall GMV decreased
by
-16.0%
on a comparable basis:
-
Product GMV (Direct sales and marketplace)
decreasing by -18.5%, -32.0% for direct sales and -2.1% for the
marketplace, confirming the objective of Cnova to improve its GMV
mix and profitability towards more marketplace, with an increasing
marketplace GMV share of +9.1pts in the 4th quarter;
-
Advertising services slightly decreased in the 4th
quarter, showing a solid dynamic when compared to GMV trend with
record-high monetization per viewed pages during Black Friday;
-
B2C Services showed promising dynamics, especially
thanks to a fast-growing activity for Cdiscount Travel which
achieved the best year since its launch in 2018 with a growth of
+46.1% compared to 2021 and +18.5% in the 4th quarter;
-
Octopia was very dynamic and
signed 2 clients
in the 4th quarter for
its marketplace-as-a-Service solution
including a major French retailer with more than €200m online GMV
in 2022 while Fulfillment-as-a-Service
grew by +48.4%
in the 4th
quarter.
Cdiscount à
Volonté (“CDAV”), Cdiscount’s loyalty program,
still encompasses 2.5 million members with a slightly decreasing
GMV share of 41.8% during the 4th quarter 2022, benefiting from 2.3
million SKUs available for express delivery, with a Fulfilment by
Cdiscount assortment increasing by +16% compared to last year.
|
Clients in m |
at end 22 |
|
Total clients4 |
8.8 |
|
CDAV subscriber base4 |
2.5 |
The number of visitors is decreasing by -5.5%
during the fourth quarter 2022, with a total of 274.6m visitors
during the period, a dynamic aligned with market trend.
With more than 80% of the
traffic coming from mobile, Cdiscount.com
mitigated market headwinds and maintained its strong #2 position in
France according to Médiamétrie5 in the 4th quarter with an
improving trend in the 4th when compared to the 3rd quarter.
Cnova’s strategic shift
towards the marketplace
is accelerating,
exceeding the 50% GMV share landmark in a sole quarter – an
increase of
+9.1
points compared to
2021. Raised quality standards,
with NPS up 0.2pts y-o-y to 50 in the 4th quarter, led to this
fast-increasing marketplace GMV share this quarter. As part of this
strategy, Fulfilment by Cdiscount and Express seller program
continued to be very dynamic now representing more than 50% of
marketplace GMV in the 4th quarter.
|
|
4Q22 |
vs. 4Q21 |
|
Marketplace GMV share |
54.1% |
+9.1pts |
|
Cdiscount express seller MKP GMV share |
15.1% |
+6.5pts |
|
Fulfilment by Cdiscount MKP GMV share |
36.5% |
(4.0)pts |
|
Total marketplace GMV share eligible to express
delivery |
51.6% |
+2.5pts |
Full year
financial performance
|
Cnova N.V.(€ millions)
|
Full Year |
Change |
|
2022 |
2021 |
vs. 2021 |
|
GMV |
3,497.1 |
4,205.5 |
(16.8)% |
| Total
Net sales |
1,700.2 |
2,162.5 |
(21.4)% |
| As a % of
GMV |
48.6% |
51.4% |
(2.8)pt |
| Gross
margin |
393.8 |
473.6 |
(16.9)% |
| As a %
of Net sales |
23.2% |
21.9% |
+1.3pts |
| As a % of
GMV |
11.3% |
11.3% |
- |
| SG&A
(excl. D&A) |
(341.8) |
(371.0) |
(7.9)% |
| As a %
of Net sales |
(20.1)% |
(17.2)% |
(2.9)pts |
| As a % of
GMV |
(9.8)% |
(8.8)% |
(1.0)pt |
|
EBITDA |
52.0 |
102.7 |
(49.4) |
| As a %
of Net sales |
3.1% |
4.7% |
(1.7)pts |
| As a % of
GMV |
1.5% |
2.4% |
(1.0)pt |
| Operating
EBIT |
(45.8) |
13.1 |
(58.9) |
| Net financial
income / (expense) |
(72.5) |
(52.8) |
(37.3)% |
|
Net profit / (loss) from cont. operations |
(128.0) |
(51.3) |
(149.5)% |
Net sales amounted to €1,700.2m
for the Full Year 2022, a -21.4% decrease compared to 2021. Net
sales evolution has been impacted by the improvement of product mix
towards the marketplace, whose revenues are just recognized for the
amount of associated commissions, with a GMV share increasing by
+6.1pts in a year. This product mix improvement has been
accelerating in Q4 with GMV marketplace share increasing by
+9.1pts.
Gross margin was €393.8m for
the Full Year 2022, decreasing by -16.9% compared to 2021 but
representing 23.2% of net sales, which represents an improvement
compared to 2021 of +1.3pts. Cnova accelerated its shift towards
the marketplace: marketplace and Cdiscount advertising together
brought more than +2.5pts in gross margin. This increase more than
compensated one-off negative impact from destocking initiatives
(-0.6pts on gross margin) that contributed to a +€112m positive
impact on working capital related to inventory reduction.
SG&A costs
excluding depreciation and amortization amounted to €(341.8)m for
the Full Year 2022, decreasing by
€29.1m thanks to
the implementation in early Q2 of an efficiency plan to recalibrate
cost structure to current level of activity. This efficiency plan
including SG&A and CAPEX savings outperformed the €30m July 28,
2022 guidance by €17m in 2022. Fulfillment costs,
at 7.1% of net sales (-0.6 pt vs. 2021), decreasing by €19.1m in
value as a result of (i) lower volumes, (ii) efficiency plan on
square meter optimization (iii) productivity enhancement and (iv)
renegotiations that together offset high inflation headwinds.
Marketing costs represented 4.9% of net sales
(-0.3 pt vs. 2021), decreasing by €17.7m in value. Cdiscount
maintained its acquisition marketing spend proportionally to a
lower GMV and benefited from the implementation of the savings
plan. Technology & Content costs increased at
3.7% of net sales (+1.7 pts vs. 2021) related to the continuous
investment in Octopia’s product and commercial development partly
offset by the savings plan that was achieved gradually throughout
the second half of the year. General &
Administrative represented 2.4% of net sales (-0.3 pt vs.
2021), decreasing by €4.0m in value. Most of the savings incurred
in this cost line were concentrated on central costs with a
full-year impact expected in 2023.
As a result, FY 2022
EBITDA decreased to +€52.0m representing 3.1% of
net sales (-1.7 pts vs. 2021). In a context of significant market
headwinds, EBITDA benefited from a resilient marketplace
performance and increased revenues from advertising services while
heavy destocking initiatives negatively weighted on Direct Sales
gross margin. This negative impact on gross margin was partly
offset by the positive +€29m impact of the efficiency plan at OPEX
level.
Operating EBIT decreased to
€(45.8)m representing -2.7% of net sales (-3.3 pts vs. 2021), with
depreciation and amortization increasing by €8.1m y-o-y due to
growing investment over the past years in new B2B activities
especially Octopia’s product developments.
Other non-recurring
income /
(expenses)
amounted to €(4.6)m. Costs related to the
efficiency plan and assets impairment was mainly compensated by a
positive gain on Floa assets disposal for €14.0m.
Net financial expenses – mainly
related to 4-installment payment solutions offered to customers –
amounted to €(72.5)m representing -4.3% of net sales (-1.8 pt vs.
2021) an increase of €(19.7)m compared to last year:
- 4-installment
payment cost of risk was temporarily negatively impacted
in 2022 by higher take rate in H2 2021 and H1 2022 together with
higher interest rates for c. €(14)m
- Long Term loan with the
Casino Group increasing from €150m up to €300m for c.
€(5)m
Net loss from continuing
operations amounted to €(128.0)m, representing -7.5% of net sales
(-5.1 pts vs. 2021).
|
Free cash flow figures(€
millions) |
|
Full Year2022 |
Full Year2021 |
|
Changevs. 2021 |
|
|
|
|
EBITDA3 |
|
52.0 |
102.7 |
|
(50.7) |
| (-) cash
non-recurring items |
|
(11.8) |
(8.8) |
|
(3.0) |
| (-) IFRS 16
rents |
|
(35.8) |
(34.7) |
|
(1.1) |
| (+/-) Change in
working capital |
|
+14.6 |
(41.6) |
|
+56.2 |
|
(-) Income taxes |
|
(2.5) |
(3.6) |
|
+1.1 |
| Cash
from continuing operations, incl. rents |
|
16.5 |
13.9 |
|
+2.6 |
| (-) Net
CAPEX |
|
(80.3) |
(92.9) |
|
+12.6 |
| (+) Floa &
CCV disposals cash in |
|
+79.2 |
- |
|
+79.2 |
|
FCF continuing operations before cash from financing
activities |
|
15.4 |
(79.0) |
|
+94.4 |
|
(Net Financial Debt)/Net Cash |
|
(372.5) |
(326.5) |
|
(46.1) |
Free cash flow from
continuing operations before financial
expenses amounted to
€15.4m
during the Full Year 2022, i.e. a
+€94.4m
increase compared to the
Full Year 2021 in a difficult market context where
Cnova focused on preserving cash and profitability:
- Cash from
continuing operations, including cash
rents, was up by +€2.6m
to
€16.5m:
EBITDA decrease
was compensated by working capital improvement. An
Efficiency Plan was launched in early 2Q22 and resulted in a
positive free cash flow before financial expenses and more positive
effects expected in 2023.
- A positive change
in working capital of +€14.6m presenting a significant
improvement compared to last
year of
+€56.2m
thanks to:
- Positive impact
from inventories and receivables for +€225m
- Decrease in
inventories by €(157)m thanks to (i) the efficiency plan
for €(112)m : 1P offer rationalization to focus on high turnover
products and highest margins categories and (ii) sale of €45m Géant
inventories in May and June 2022 to Casino Group
- Decrease in
receivables by €(68)m thanks to (i) lower level of direct
sales activity that favorably impacted the volume of B2B trade
& advertising invoicing to suppliers (ii) dedicated task force
to reduce the level of outstanding invoices and (iii) higher level
of receivables mobilization
- Partly
Compensated by the decrease in trade
payables by
€(195)m in line
with the -27% decrease in direct sales that resulted from
the voluntary shift towards the marketplace and reduced exposure to
loss-making direct sales categories
- Net capital
expenditures decreased
by
€(13)m
over the Full Year 2022 as a result of the rationalization of
investments to adapt to current level of activity. Savings
on gross capital expenditures amounted to
€(18)m
to bring 2022 total savings plan to €47m in OPEX and CAPEX vs.
2021, a €17m overperformance vs. July 28, 2022 guidance.
- Additional
positive one-off
impact from disposal of
non-strategic assets:
-
+€21m
disposal of Floa
assets to BNP Paribas: €37m total
positive impact on Net Financial Debt considering c. €17m deferred
revenues positive impact on non-trade working capital
- +€58m
disposal of CChezVous to
Geopost: €64m with 95% cash-in in
2022 net of closing adjustments
Key Business Achievements
Marketplace growing at
a CAGR of +7.4%
over the past five years,
driving up revenues and profitability
- The marketplace gained +6.3 points
of GMV share in the Full Year 2022 compared to 2021 to reach
51.5%
- Marketplace
revenues amounted to €191.4m in the Full Year 2022
decreasing by a resilient 2.2% compared to 2021.
- Expansion of express
delivery share:
- Fulfilment by
Cdiscount is increasing slightly, with a +0.3 points
increase in marketplace GMV share in the Full Year 2022 to reach
37.4% on average;
- Cdiscount Express
Seller, launched in 2019 for sellers able
to offer express delivery to Cdiscount à Volonté customers. This
program now covers, in the Full Year 2022, 13.9% of marketplace
GMV, a +7.7 points increase compared to last year;
- Together, express delivered
SKUs covers in the
Full-Year 2022
51.3% of
marketplace GMV, a +8.0 points increase compared to last
year.
Direct sales performance
of technical goods categories benefited from
strengthened relations with top
20 national brands,
enhanced cash profile but were mainly impacted by
high comparison base and adverse market
conditions:
- Top 20 brands posted strong
performance: +8pts GMV direct sales trend vs. other direct
sales (+3pts share overall) driven by Super Brand days, exclusive
offers and co-financed promotions & co-branding;
- Improved direct sales
assortment and cash profile: number of SKUs divided by 2
(30k) with enhanced inventory turnover (<60 days at
year-end);
- Strong
comparison base with physical stores closed during the 3rd
lockdown in the 1st half of 2021 and 2022 performance impacted by
high inflation of purchases (semi-conductor
shortage, increase in raw materials, supply chain
disruptions).
B2C Services showed solid
performance driven by market recovery and
offer expansion
- B2C Services GMV,
excluding Energy, amounted to €127.4m in the full-year 2022, up
+43.1% vs. last year.
- Cdiscount Voyages
(travel) experienced a significant growth, posting a strong +46.1%
GMV growth vs. 2021.
- Cdiscount Mobile
(cell phone plans) experienced a significant acceleration, posting
a strong +56.4% GMV growth vs. 2021 with a positive evolution of
customer base with more than 215 k clients representing a growth of
43%.
Enhanced customer experience and record
high NPS
- Increase of
+1.4 points
in NPS average during the Full
Year 2022 (+7.1 points over 2 years) leading to a record high NPS
compared to the last three years, through intensified efforts to
improve customer experience before, during and after the sale.
- Despite a decrease in direct sales
GMV presenting higher historical NPS, overall NPS was
favourably impacted by a sharp increase
in marketplace customer
satisfaction which grew by +2.7 pts compared to 2021 and
+13.7 pts compared to 2019, narrowing the gap with the direct sales
customer satisfaction by 3.9pts since 2019. The primary lever of
this improvement has been the constant enhancement in marketplace
delivery services: Fulfilment by Cdiscount and Cdiscount express
seller orders now cover more than half of marketplace GMV (+20 pts
between 2019 and 2022).
- Artificial
intelligence-powered algorithms were implemented all along
the customer journey in the past twelve months, significantly
enhancing the relevance of the Cdiscount.com search engine (+5 pts
in the search engine click rate compared to 2021) and optimizing
the pricing proposed to the clients (more than 1m SKUs crawled, x2
vs. 2021)
Dynamic advertising
services powered by Cdiscount Ads Retail
Solution
-
Revenues from advertising
services increased by
+5.4% in the
Full Year 2022 compared to last year, reinforcing Cnova’s most
profitable activity.
- It was supported by Cnova’s
proprietary solution launched in the 1st quarter 2020,
Cdiscount Ads Retail Solution
(CARS)6, a 100%
self-care advertising platform enabling both sellers and suppliers
to promote their products and brands. Revenues generated by this
platform grew by
+29% in the full
year 2022.
- x2 number of active
users in 2 years to reach 7k
- Better bidding algorithms
powered by artificial intelligence: +50%
increase in click rate in 2 years
- Record high investment rate
during Black Friday: 19€ per 1,000 viewed pages
Octopia is growing,
establishing itself as a turnkey marketplace solution
for EMEA retailers and
e-merchants
- Cnova’s turnkey marketplace
solution offers 3 modular and ready-to-operate marketplace
services to international retailers and e-merchants with a
+66.4%
increase in the full year
2022 to
€18.8m net
revenues:
-
Merchants-as-a-Service to bring sellers to
existing marketplaces and Marketplace-as-a-service
to transform e-commerce websites into marketplaces benefits from a
strong commercial acceleration with 14 contracts signed during the
full year 2022 to reach 26 clients at year-end. Revenues in
commissions & set-up fees were multiplied by 6.3 in 2022;
-
Fulfilment-as-a-Service to bring multi-marketplace
fulfilment solutions including cross-border shipping and warehouse
management solution had a successful year as it grew its revenues
by +40.2% during the Full Year 2022.
-
Products-as-a-Service to bring products to
small/medium websites and marketplaces in Europe decreased by -25%
in the full-year 2022 related to a focus on profitability in a
context of high inflation and European ecommerce slowdown.
C-Logistics aims to adapt its
structure, to
develop its B2B activity and support
the marketplace
fulfilment solution
ramp-up
- C-logistics initiated in 2022 a
significant optimization of its
warehousing
capacity with a decrease of 29k
sqm in December 2022 compared to last year.
-
Productivity improvement
increasing by 7% for light parcels together with
significant savings in operational expenses and
enhanced capacity to deliver other
European countries thanks to partnerships with Geopost for
express delivery and BPost for standard delivery.
- B2B activities
development: 3 majors clients signed in
2022 (Les Raffineurs, Boardriders and a luxury global leader).
C-logistics’ B2B supply ecommerce operations benefit from a
competitive offer: high B2C service quality, competitive
transportation pricing, differentiating CSR standards and
personalized packaging.
- C-Logistics reinforced 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, of which 95% was cashed-in in
2022 net of closing adjustments. 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.
Corporate Social Responsibility
Cnova maintained its CSR strategy to promote
access to products and services to as many people as possible,
while building a sustainable and inclusive European digital
economy, addressing major ecommerce stakes.
To reduce the environmental impact
of Cnova offering,
Cnova accelerated its actions towards a
more sustainable consumption:
- “More sustainable” products (energy-efficient and more
repairable products, products certified by recognized labels, Made
in France and refurbished products) accounted for 13.2% of
Cdiscount’s product sales, up 2.9 points compared to 2021.
- In particular, 1 out of 3 phones and 1 out of 10 computer sold
were refurbished. Sales of high-tech refurbished products enabled
to avoid the emission of 8,600 tons of C02.
Cnova has been
continuing implementing
solutions to reduce the environmental impact of its
logistics for BtoC
and BtoB
activities:
- Transportation:
100% of deliveries and returns for Cdiscount.com contributed to
carbon-neutrality, thanks to strong and continuous commitment to
reduce GHG emissions (increase of bulk loading for light parcels,
increase of the share of parcels shipped without void, increase of
the share of low carbon last-mile deliveries) and sequestration of
residual emissions with the endowment fund “Plantons pour
l’Avenir”.
- Packaging: Cnova
has been continuing its action plan to reduce the impact of
packaging. In 2022, more than 1 out of 4 parcels was shipped
without packaging. At the end of 2022, 100k orders per month were
also eligible for reusable packaging on Cdiscount.com.
Cnova
pursued as well its
social and societal commitment:
- Diversity: For the
3rd time, Cdiscount was awarded by the Financial Times as a
Diversity Leader for its commitment to promote diversity within the
company.
- Gender parity: The
share of women in each subsidiary of Cnova has been increasing in
2022. At Cnova level, 52% of promotions for executives and top
executives are involving women.
- Charity: 8
projects related to the environment protection, fighting
inequalities, protecting childhood and health care were financed
thanks to the donation to the basket tool on Cdiscount.com.
Significant events since the end of
December
On January 16, 2023, Mr. Thomas Metivier, 35 years old, Engineer
of France’s Corps des Mines, replaced Mr. Grenier as Cnova
Executive Director and CEO. He has also been appointed CEO of
Cdiscount as of this date.
Outlook
In 2023, Cnova will accelerate the pace
of its transformation,
focusing on strengthening profitability,
growing the
marketplace while leveraging on
advertising services and on the commercial success of
Octopia and C-Logistics’ solutions:
- B2C
strategy to focus Cdiscount’s positioning on the
French market & improve profitability: be the 1st French
E-merchant, offer a wide assortment with attractive prices through
the growing marketplace and high promotion intensity
- B2B strategy to
accelerate development and pave the way for future ARR7 growth and
margin expansion:
- Octopia’s acceleration with a
strong commercial pipeline of c. 100 prospects, 26 clients already
signed and accelerating GMV ramp-up of its 17 active clients at
2022 year-end;
- Revenue growth expected from
C-logistics with 3 clients operational for its end-to-end ecommerce
supply solution.
In the 2nd quarter 2022, Cnova has launched
an Efficiency Plan to swiftly recalibrate its cost
structure & capex level with a total
of €75m savings target8
on a full-year
basis by the end of 2023,
representing 15% of the total
2021 SG&A and CAPEX spendings. The Plan, supported by
a dedicated transformation team, already brought
€47m in
2nd half of the year
2022, ie an
overperformance of +€17m compared to the July 28,
2022 guidance.
***
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.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 |
Appendices
Cnova N.V.
Full-year 2022 Consolidated
Financial
Statements(1)
|
Consolidated Income Statement |
|
Full Year2022 |
Full
Year2021* |
Change |
|
€ millions |
|
|
Net sales |
|
1,700.2 |
2,162.5 |
(21.4)% |
| Cost of
sales |
|
(1306.4) |
(1688.8) |
(22.6)% |
| Gross
margin |
|
393.8 |
473.6 |
(16.9)% |
|
% of net sales |
|
23.2% |
21.9% |
+1.3pts |
|
SG&A(2) |
|
(439.6) |
(460.5) |
(4.6)% |
| % of net
sales |
|
(25.9)% |
(21.3)% |
(4.6pts) |
|
Fulfillment |
|
(151.5) |
(170.5) |
(11.2)% |
| Marketing |
|
(88.2) |
(105.9) |
(16.7)% |
| Technology and
content |
|
(153.8) |
(133.6) |
+15.2% |
|
General and administrative |
|
(46.0) |
(50.5) |
(8.9)% |
|
Operating
EBIT(3) |
|
(45.8) |
13.1 |
(58.9) |
|
% of net sales |
|
(2.7)% |
0.6% |
(3.3pts) |
|
Other expenses |
|
(4.6) |
(6.8) |
+2.2 |
|
Operating profit/(loss) |
|
(50.3) |
6.3 |
(56.6) |
|
Net financial income/(expense) |
|
(72.5) |
(52.8) |
(37.3)% |
|
Profit/(loss) before tax |
|
(122.9) |
(46.5) |
(76.3) |
| Income tax
gain/(expense) |
|
(5.2) |
(4.8) |
+7.9% |
|
Net profit/(loss) from continuing
operations |
|
(128.0) |
(51.3) |
(76.7) |
|
% of net sales |
|
(7.5)% |
(2.4)% |
(5.2pts) |
|
Net profit/(loss) from discontinued operations(4) |
|
2.7 |
1.7 |
+64.7% |
| Net
profit/(loss) for the period |
|
(125.3) |
(49.7) |
(75.6) |
|
% of net sales |
|
(7.4)% |
(2.3)% |
(5.1pts) |
| Attributable
to Cnova equity holders (incl. discontinued) |
|
(125.6) |
(51.1) |
(74.5) |
|
Attributable to non-controllinginterests (incl. discontinued) |
|
+0.3 |
+1.4+ |
+1.1 |
|
Adjusted EPS
(€)(5) |
|
(0.36) |
(0.15) |
(0.21) |
*re-presented to consider CChezVous financials
reclassified in discontinued activities and IAS 38 reclassification
impact from CAPEX to OPEX on various SAAS development
expenditures1) Unaudited financial
statements2) SG&A: Selling, General and
Administrative expenses3) Operating EBIT:
operating profit/(loss) before other expenses (strategic and
restructuring expenses, litigation expenses and impairment and
disposal of assets expenses).4) In accordance with
IFRS5 (Non-current Assets Held for Sale and Discontinued
Operations), HALTAE and CChezVous (formerly Stootie)’s post-tax net
profit for the year ended 31 December 2022 and 2021 are reported
under “Net profit/(loss) from discontinued
operations”5) Adjusted EPS: net profit/(loss)
attributable to equity holders of Cnova before other expenses and
the related tax impacts, divided by the weighted average number of
outstanding ordinary shares of Cnova during the applicable
period.
|
Consolidated Balance Sheet |
|
2022End
December |
2021End
December |
| (€
millions) |
| |
|
|
|
|
ASSETS |
|
|
|
| |
|
|
|
| Cash and cash
equivalents |
|
13.7 |
20.4 |
| Trade
receivables, net |
|
83.0 |
150.9 |
| Inventories,
net |
|
145.9 |
302.7 |
| Current income
tax assets |
|
2.9 |
4.0 |
| Other current
assets, net |
|
319.2 |
186.4 |
|
Total current assets |
|
564.6 |
664.4 |
| |
|
|
|
| Other
non-current assets, net |
|
12.6 |
10.6 |
| Deferred tax
assets |
|
42.1 |
43.6 |
| Right of use,
net |
|
115.8 |
138.3 |
| Property and
equipment, net |
|
19.1 |
23.4 |
| Intangible
assets, net |
|
233.2 |
233.0 |
|
Goodwill |
|
60.7 |
122.3 |
|
Total non-current assets |
|
483.7 |
571.2 |
|
|
|
|
|
|
Assets held for sale |
|
0.0 |
3.7 |
|
|
|
|
|
|
TOTAL ASSETS |
|
1,048.3 |
1,239.4 |
| |
|
|
|
| EQUITY
AND LIABILITIES |
|
|
|
| |
|
|
|
| Current
provisions |
|
9.1 |
4.1 |
| Trade
payables |
|
428.9 |
624.3 |
| Current
financial debt |
|
127.9 |
84.2 |
| Current lease
liabilities |
|
35.8 |
34.0 |
| Current tax
and social liabilities |
|
67.0 |
104.4 |
| Other current
liabilities |
|
210.5 |
216.9 |
|
Total current liabilities |
|
879.2 |
1,067.9 |
| |
|
|
|
| Non-current
provisions |
|
6.0 |
8.8 |
| Non-current
financial debt |
|
414.5 |
280.4 |
| Non-current
lease liabilities |
|
105.3 |
130.8 |
| Other
non-current liabilities |
|
18.1 |
3.1 |
| Deferred tax
liabilities |
|
1.3 |
1.3 |
|
Total non-current liabilities |
|
545.2 |
424.4 |
|
|
|
|
|
|
Liabilities held for sale |
|
- |
- |
| |
|
|
|
| Share
capital |
|
17.3 |
17.3 |
| Reserves,
retained earnings and additional paid-in capital |
|
(465.2) |
(341.4) |
| Equity
attributable to equity holders of
Cnova |
|
(448.0) |
(324.2) |
|
Non-controlling interests |
|
71.8 |
71.3 |
|
Total equity |
|
(376.1) |
(252.9) |
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
1,048.3 |
1,239.4 |
|
Consolidated Cash Flow Statement |
|
Full-year2022 |
Full-year2021 |
| (€ millions,
ended December) |
|
| Net
profit/(loss) attributable to equity holders of the
Parent |
|
(127.7) |
(52.0) |
| Net
profit/(loss), attributable to non-controlling interests |
|
(0.3) |
0.7 |
|
Net profit (loss) for the period excl. discontinued
operations |
|
(128.0) |
(51.3) |
| Depreciation
and amortization expense |
|
97.8 |
89.0 |
| (Gains) losses
on disposal of non-current assets and impairment of assets |
|
(13.4) |
1.8 |
| Other non-cash
items |
|
3.3 |
2.9 |
| Financial
expense, net |
|
72.5 |
52.4 |
| Current and
deferred tax (gains) expenses |
|
5.2 |
4.8 |
| Income tax
paid |
|
(2.5) |
(3.6) |
| Change
in operating working capital |
|
14.6 |
(41.6) |
|
Inventories of products |
|
156.7 |
(19.4) |
|
Accounts payable |
|
(199.4) |
(40.7) |
|
Accounts receivable |
|
79.6 |
32.4 |
|
Working capital non-goods |
|
(22.3) |
(13.9) |
| Net
cash from/(used in) continuing
operating activities |
|
49.5 |
48.6 |
|
Net cash from/(used in)
discontinued operating activities |
|
6.0 |
0.6 |
| Purchase of
property, equipment & intangible assets |
|
(81.7) |
(98.9) |
| Purchase of
non-current financial assets |
|
(0.3) |
(0.3) |
| Proceeds from
disposal of prop., equip., intangible assets |
|
22.6 |
6.4 |
|
Acquisition/disposal of subsidiaries, net of cash acquired |
|
58.2 |
(0.2) |
|
Changes in loans granted (including to related parties) |
|
(153.4) |
129.6 |
| Net
cash from/(used in) continuing
investing activities |
|
(154.5) |
36.7 |
|
Net cash from/(used in)
discontinued investing activities |
|
15.2 |
(4.5) |
| Increase
(decrease) of capital of the holding company |
|
0.0 |
- |
| Dividends paid
to the non-controlling interests |
|
(0.0) |
(0.0) |
| Additions to
financial debt |
|
170.0 |
5.8 |
| Repayments of
financial debt |
|
(58.4) |
- |
| Repayments of
lease liability |
|
(27.8) |
(27.9) |
| Interest paid
on lease liability |
|
(7.8) |
(6.8) |
|
Interest paid, net |
|
(57.3) |
(44.4) |
| Net
cash from/(used in) continuing
financing activities |
|
18.6 |
(73.3) |
|
Net cash from/(used in)
discontinued financing activities |
|
(6.3) |
0.0 |
|
Effect of changes in foreign currency translation adjustments from
discontinued operations |
|
0.0 |
0.0 |
| Change
in cash and cash equivalents from continuing
operations |
|
(86.4) |
12.0 |
|
Change in cash and cash equivalents from discontinued
operations |
|
15.0 |
(3.9) |
|
Cash and cash equivalents, net, at period
begin |
|
17.1 |
9.0 |
|
|
|
|
|
|
Cash and cash equivalents, net, at period end |
|
(54.3) |
17.1 |
|
Upcoming Event |
|
|
|
Wednesday, February 22, 2023 at 6:00 pm CET / 12:00am EDT |
Cnova full-year 2022 Financial ResultsConference Call &
Webcast |
|
Conference Call and Webcast connection
details |
|
|
|
Conference Call Dial-In: |
|
https://register.vevent.com/register/BI363470969f1344aab189223fb600602c
|
|
Webcast: |
|
https://edge.media-server.com/mmc/p/6odov7ez |
|
An archive of the webcast will be available for 12 months with the
usage of the webcast link |
|
|
1 Calculated as revenues (excluding VAT) divided by product GMV
(Direct Sales + Marketplace, adjusted for VAT)2
Like-for-like figures exclude cross-canal sales and Cdiscount
Energy GMV for 1H21 and 1H223 EBITDA: operating profit/(loss) from
ordinary activities (EBIT) adjusted for operating depreciation
& amortization of respectively €(89.6)m and €(97.7)m during the
full Year 2021 and 20224 Client & subscriber base on
31/12/20225 Average between October, November and December
Médiamétrie studies6 i.e., Sponsored products7 Annual recurring
revenues8 2023 savings target of July 2022 did not factor the 2023
expected inflation that was still highly uncertain
- Cnova NV Press release Q4 Activity & FY 2022 Results
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