CNOVA N.V. First Quarter 2023 Activity
26/04/2023 16:59
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CNOVA N.V.
First quarter 2023 activity
In a still challenging market where Cnova accelerated its shift to wards marketplace, GMV stands at - 15 % like-for-like (1), improving compared to Q4 (-16%). April current trading (2)shows si gnificant improvement s compared to 1Q23 : M arketplace back to growth at + 5 % (+ 9 pts vs. 1Q23 y-o-y evolution ) and Product GMV standing at -10% ( + 10pts vs. 1Q23 y-o-y evolution ) . In this context, Cnova accelerated the pace of the transformation towards a profitable model with Gross Margin increasing by
+6pts vs. 1Q22 : * GMV & Marketplace share : all-time highest marketplace share in Q1 at 57% (+9pts vs. 22, +21pts vs. 19)
* Rationalization of direct sales assortment with improving profitability and cash profile, supporting the overall Gross Margin increase
* Marketplace revenues at €45m (+2% vs. 22, +29% vs. 19), with an increase in GMV take rate standing at 16.6% (+0.9pt vs. 22, +1.6pt vs. 19)
* Advertising services revenues reaching €17m (+9% vs. 22, x2.1 vs. 19), with an increase in GMV take rate standing at 3.5% for Q1 (+0.9pt vs. 22, +2.2pts vs. 19)
* Record B2C Services GMV (1)at €36m (+37% vs. 22, x2.6 vs. 19) driven by Travel (+38% vs. 22, x2.2 vs. 19) and Mobile activities (+36% vs. 22, x7.2 vs. 19)
* Octopia B2B revenues reaching €5m (+42% vs. 22) with the successful launches of 2 marketplaces (Bébéboutik and an international retailer) and outperformed revenues on Fulfilment-as-a-Service, with an increase in shipped parcels (+38% vs. 22)
* C-Logistics B2B revenues at €2m (x6 vs. 22), with its third party-logistic solution successfully launched for a European sportswear company
Q1 monthly performance and current trading confirming the acceleration of profitable growth drivers with sequential improvement of growth in Q1 and April current trading: * Product GMV: -23% in Jan., -20% in Feb., -16% in March, -10% in April to date (2)
* Marketplace GMV: -9% in Jan., -5% in Feb., -2% in March, +5% in April to date (2)
Efficiency plan to swiftly recalibrat e SG&A & CAPEX level by end 2023 is on track to reach the July 2022 guidance of + € 75 m savings on a full-year basis by the end of the year, leading to significant and continuous improvement of profitability and operational cash in the 1 (st)quarter. Over Q1, the Transformation Plan has been reinforced with a dedicated steering team and specific projects aiming at accelerating the pace of the plan with a € 15 m additional savings objective on a full-year basis ,
despite inflation headwinds. Continuous development of Cnova’s ESG policy: * “More sustainable products” SKUs: 15.2% of Cdiscount’s Product GMV (+3.8pts vs. 22) * C-Logistics greenhouse gas emissions: -19.2% on the 22 vs. 21 reporting period
* Gender parity: increase in Cnova’s gender equality index by +0.2pts vs. 21
AMSTERDAM – April 26, 2023, 18:00 CET Cnova N.V. (Euronext Paris: CNV; ISIN:
NL0010949392) (“Cnova”) today announced its first quarter 2023 activity.
Thomas Métivier, Cnova’s CEO, commented:
“In the 1(st) quarter of 2023, Cnova has accelerated the pace of its
transformation, on all its strategic pillars: marketplace, advertising
services and B2B development with the commercial success of Octopia and
C-Logistic’s solutions.
The relevance of Cnova’s platform model is confirmed by an all-time high
marketplace share and record high quarter for marketplace revenues,
advertising services and B2B, thanks to the strength of the technological
platform, the efficiency of our artificial intelligence algorithms and our
network of 15,000 sellers and suppliers.
All those actions, combined with the efficiency plan and strong efforts to
improve direct sales margins, have already delivered significant impact on
profitability and free cash flow.
The transformation continues to accelerate with improving trends since the
beginning of April.”
First Quarter 2023 Key Figures
Financial performance (€ millions, GMV figures incl. VAT) 1Q23 1Q22 (2) Change vs. 22
Reported L-f-L (3)
Total GMV 71 2 . 4 9 09 . 2 ( 21 . 6 )% ( 1 5 . 0 )%
Ecommerce platform 69 2 . 6 88 3 . 0 ( 2 1 . 6 )% ( 1 4 . 7 )%
o/w Direct sales 251.6 372.8 (32.5)%
o/w Marketplace 328.9 341.5 (3.7)%
Marketplace share 5 6 . 7 % 4 7 . 8 % + 8 . 9 pts
o/w B2C Services 36.2 73.2 (50.5)% +37.2%
o/w Other Revenues 75.8 95.5 (20.6)% +5.8%
B2B activities 19 . 8 26 . 1 ( 2 4 . 2 )%
o/w Octopia B2B revenues 5.4 3.8 +42.4%
o/w Octopia Retail & Others 12.5 21.9 (42.9)%
o/w C-Logistics 2.0 0.4 x5.5
Total Net sales 32 3 . 5 44 6 . 6 ( 27 . 6 )% ( 24.2 )%
First Quarter 2023 Highlights
GMV 1Q 2 3
Total like-for-like (2)growth -15.0%
Marketplace growth -3.7%
Travel growth +37.6%
Octopia B2B revenue growth +42.4%
GMV posted a -15.0% like-for-like decrease in the 1(st) quarter 2023,
confirming Cnova’s strategic choice to accelerate its platform revenues with
the development of its marketplace, advertising services and B2B businesses
with Octopia and C-Logistics. This year-on-year change was driven by:
* Direct Sales contributing -13.3pts (-32.5% 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 -1.4pt (-3.7% y-o-y) while delivering +9pts in GMV
share. Cnova raised quality standards through better delivery services with
50.3% free express delivery share in the 1(st) quarter
* B2C Services contributing +1.1pt (+37.2% y-o-y), among which Travel alone
brought +0.9pt to Cnova growth (+37.6% y-o-y) * Octopia B2B revenues
contributing positively to growth (+42% y-o-y) driven by Merchant-as-a-Service
and Marketplace-as-a-Service revenue growth (x2 vs. 22), with the successful
launches of 2 marketplaces (Bébéboutik and an international retailer) and
accelerating Fulfilment-as-a-Service revenues with an increase in shipped
parcels (+38% vs. 22)
* Octopia retail GMV contributed negatively for -1.0pt (-43% y-o-y) with
Products-as-a-Service offer now focused on profitability as part of the
transformation plan to drive profitable retail growth
Marketplace 1Q 2 3 Change vs. 1Q 2 2
Marketplace product GMV share 56.7% +8.9pts
Marketplace Fulfilment + Express sellers GMV share 50.3% +0.2pt
Marketplace revenues €45.5m +1.9%
Advertising services Product GMV take rate (4) 3.5% +0.9pt
Marketplace posting a 29pts y-o-y growth differential against first party
sales, decreasing overall by -3.7%. Strong and regular customer satisfaction
measured by the NPS at 55 (+11pts vs. 19 and steady vs. 22) led to a
fast-increasing marketplace GMV share this quarter up to 56.7% (+8.9pts vs.
last year). As part of this strategy, Fulfilment by Cdiscount and Express
seller program continued to be very dynamic representing 50.3% of marketplace
GMV in the 1(st) quarter 2023, an increase of 0.2pt vs. last year.
Clients 1Q 23
Active clients over the last 12 months 8.1
CDAV GMV share 38.5%
The loyalty program Cdiscount à Volonté (CDAV) represented 38.5% of total
GMV in the 1(st) quarter 2023.
Net Sales 1Q 23
Total like-for-like (2)growth -24.2%
Net Sales(5) amounted to €323m (-24.2% like-for-like decrease vs. 22). This
decrease is primarily driven by the voluntary mix improvement towards
marketplace especially for non-technical goods categories with negative
contribution margin.
Business Highlights
A record high marketplace GMV share with accelerated positive trends compared
to pre-pandemic level:
* Marketplace reached all-time highest marketplace share in Q1 at 57% for the
1(st) quarter 2023 (+9pts vs. 22, +21pts vs. 19), mainly driven by home
categories and new strategic partnerships, confirming the mix evolution
towards more marketplace revenues. During the 1(st) quarter 2023, marketplace
GMV was nearly stable (-4% vs. 22), in a context of strong inflation headwinds
and macro-economic uncertainties
* New marketplace strategic partnerships were formed, including with a
childcare specialist and a leading company specialized in consumer goods
* A new dedicated team of 20 collaborators was assembled to accelerate the
recruitment and sales of the new Top sellers of the French, European and other
international markets
Cnova continues the rationalization of its direct sales assortment with
improving profitability and cash profile, supporting the overall Gross Margin
increase.
This resilient performance for both direct sales and marketplace has been
supported by disruptive offers launched this quarter, such as the new payment
installment solution provided by Floa Bank for Apple products (including the
possibility to trade an old device), and a strong and increasing customer
satisfaction measured by the NPS at 55 (+11pts vs. 19, steady vs. 22).
Expansion of marketplace SKUs eligible to express delivery is a key driver of
growth and customer satisfaction. It is also determinant to support the
product mix re-orientation towards the marketplace:
* Cdiscount Express Seller, launched in 2019 for sellers able to offer express
delivery to CDAV customers, reached a 15.4% marketplace GMV share for the
1(st) quarter 2023 (+4.1pts vs. 22)
* Fulfilment by Cdiscount marketplace GMV share stands at 34.9% for the 1(st)
quarter 2023. A consequent effort is made to provide always more quality by
recruiting top sellers with now a wider assortment than traditional retail
sales
B2C Services showed a record performance:
* B2C Services GMV, excluding Energy, amounted to €36m in the 1(st) quarter
2023, reaching again a solid growth (+37% vs. 22, x2.6 vs. 19)
* Cdiscount Voyages (travel) experienced a significant acceleration with a GMV
growth of +38% vs. 22 (x2.2 vs. 19)
* Cdiscount Mobile (cell phone plan) activity performed very well during the
1(st) quarter 2023 with a GMV growth of +36% vs. 22 (x7.2 vs. 19) and a strong
increase in the subscriber base
Dynamic Advertising Services driven by Retail Media dynamics:
* Advertising services revenues reached €17m for Q1 (+9% vs. 22), with
growing GMV take rate standing at 3.5% (+0.9pt vs. 22) * Advertising services
growth is mainly supported by Retail Media, which accounts for €13m of
revenues for Q1 (+19% vs. 22) and allows both sellers and suppliers to
reinforce their visibility and increase their sales
* Growth is also driven by a dynamic offer expansion, with the creation of new
formats, such as the launch of “premium” shops for sellers (12 signed
sellers)
Octopia’s B2B revenues know a strong commercial dynamic, driven by its
turnkey marketplace solution for EMEA retailers and e-merchants:
* Successful launches of 2 marketplaces (Bébéboutik and an international
retailer)
* Outperformed revenues on Fulfilment-as-a-Service, with an increase in
shipped parcels (+38% vs. 22) and the development of the activity in Spain
* Acceleration of the selling volume on its sales channels (x21 GMV y-o-y) and
acceleration of the number of sellers deployed
* Successful launch of the drop-shipping offer for sellers, with 38 active
sellers at end of the quarter on Products-as-a-Service
C-Logistics is developing its B2B activities through the successful launch of
its third party-logistic solution for a European sportswear company, a service
quality above customers’ expectations and knows a strong ramp-up with an
increase in the number of shipped parcels for external clients (x3 vs. 22),
representing an increase of 2.2pts in C-Logistics total number of shipped
parcels. New strategic transportation flows have been implemented, enabling
products delivery in Europe, with Chronopost for Express Delivery and BPost
for Standard Delivery.
C-Logistics is also optimizing its costs and adapting its structure with the
rationalization of transportation offers and the increase in warehouses
productivity.
C-Logistics ESG approach has been pursued with significant efforts to decrease
its energy consumption (-21% vs. 22).
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 responsible consumption through its
direct sales and marketplace product offer. Actions carried out by Cdiscount
and Octopia aiming to develop “more sustainable products” (e.g.,
increasing the visibility of these products and guaranteeing affordable
prices) enable a continuous acceleration of this offer. “More sustainable
products” account for 15.2% of Cdiscount’s Product GMV at 1Q (+3.8pts vs.
22)
* Cnova is also taking action to reduce the impact of its operations: *
Thanks to actions undertaken with carriers, greenhouse gas emissions related
to delivery of products sold by Cdiscount and shipped by C-Logistics have
decreased by -19.2% on the 22 vs. 21 reporting period
* Cdiscount and C-Logistics have joined the study group dedicated to the
writing of an AFNOR SPEC “E-commerce: information to consumers on the
environmental impact of their delivery choice”, aiming to define a reference
framework for environmental display when the consumer chooses its delivery
method on Cdiscount’s website
* Cnova’s electricity and gas consumption has decreased by -25% in 22 vs. 19
(-15.9% vs. 21), overperforming objectives announced by Cnova in early Q4 as
an answer to the national mobilization initiated by the government
* As a trustworthy partner, Cnova is committed to protect its clients.
Cdiscount, which had already signed the Product Safety Pledge in 2020, has
recommitted to consumer protection and signed the new version of the Product
Safety Pledge at the European Consumer Summit organized by the European
Commission
* 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 +0.2pt vs. 21
***
About Cnova N.V.
Cnova N.V., the French ecommerce leader, serves 8.1 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, entertainment and domestic energy
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 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 : +33 6 79 74 30 94 Media contact: directiondelacommunication@cdiscount.com Tel: +33 6 18 33 17 86 cdiscount@vae-solis.com Tel: +33 6 17 76 79 71
***
1 Like-for-like figures exclude cross-canal sales and Cdiscount Energy GMV for
1Q22; (2) as of April 25(th), 2023
2 2022 figures have been restated to take into account CChezVous disposal
(discontinued operations)
3 Like-for-like figures exclude cross-canal sales and Cdiscount Energy GMV for
Q122
4 Calculated as advertising services revenues divided by total product GMV
excluding VAT (Marketplace GMV excl. VAT + Direct sales GMV excl. VAT)
5 Like-for-like figures exclude cross-canal sales and Cdiscount Energy GMV for
Q122
Attachment
* Cnova NV_Activity Press Release_1Q23
(https://ml-eu.globenewswire.com/Resource/Download/cf925f9f-8921-4c5b-8c4d-3dbc16dbcd10)
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