Cnova N.V. - Third Quarter 2021 activity & update
CNOVA N.V.Third Quarter
2021 activity & update
Cnova posted a resilient
business performance despite
softer market conditions
than anticipated in the
particular context of reopening
- +8% GMV growth
-
+11% GMV growth of
the Marketplace
vs. 2019 and +2% vs. 2020
- Marketplace revenues, €45m
in Q3 to reach €201m on a LTM basis
(+20%)
- Continued expansion
of Digital
Marketing revenues €17m
in Q3 (+31% y-o-y)
to reach €66m on a LTM basis (+42%)
- Acceleration of
Octopia: 5 major contracts signed
in Q3
In view of Q3 soft market demand and related necessary
price investments, Cnova
is no longer in
position to confirm its
guidance released on June
1st and June
7th (GMV, Sales,
EBITDA).Long-term growth
strategy is confirmed: strong
ecommerce platform and B2B acceleration |
AMSTERDAM – October 8, 2021, 07:45 CET Cnova
N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”) today
announced its third quarter 2021 activity.
3rd
quarter 2021 Highlights
During the 3rd quarter 2021, Cnova
posted a resilient +8% GMV
growth in a soft ecommerce market in the particular
context of reopening. Despite softer market conditions than
anticipated our loyal customer base increased, with Cdiscount A
Volonté (CDAV) members growing
+10.8%
vs. last year to reach 2.4 million. The group also
continued to accelerate on its strategic pillars with growing
marketplace
revenues
(+8.0%),
digital marketing
(+31%) as well
as its B2B initiatives with Octopia
(+15.4%) and
C-Logistics.
Our customer loyalty has
increased thanks to a record high customer
satisfaction measured by the NPS
(+5.6pts), in particular for new customers, with a
focus on express delivery and enhanced customer experience on
Cdiscount.com.
Marketplace revenues reached
€44.7m,
growing by
+8.0%,
despite a slower growth pace of the GMV (+1.9%) with a negative
effect from Chinese sellers being impacted by new VAT regulation.
On LTM, marketplace revenues reached €201m,
growing +14.8% vs. last year LTM period.
Digital marketing revenues
increased by +31% at €16.9m in
the 3rd quarter driven by the development of Cnova’s in-house
digital marketing bidding platform Cdiscount Ads Retail Solution
(“CARS”). CARS nearly doubled its revenues in just one year,
enhancing the monetization of Cnova’s ecommerce platform. CARS
turnkey white label offer is now live for commercialization in the
4th quarter.
Octopia GMV grew by
+15.4%
in the 3rd quarter (€22.1m). GMV grew by
+41.1%
on a year-to-date basis with a strong growth of
Products-as-a-Service offer at +36.5%
(€65m) and Fulfilment-as-a-Service
activity at +149.3%. The commercial ramp-up of
Merchants- and Marketplace-as-a-Service offers is accelerating. 5
contracts with leading retailers and e-commerce
players have been signed during Q3, leading to 7 contracts
signed in the last 9 months in different countries. This trend is
expected to further accelerate, given the continuously growing
pipeline.
C-Logistics third party offers
benefited from a strong commercial ramp-up: 25 clients
signed with 15 already launched.
In a soft French ecommerce environment in the
3rd quarter, Cnova reinforced its pricing competitiveness on the
ecommerce platform, posting resilient growth in a soft market. The
3rd quarter context led to expected GMV, Sales and EBITDA for the
full year below the previously announced guidance.
Besides, due to current market conditions and
despite interest mentioned by possible investors, we believe
Cnova’s raising of funds cannot be pursued in satisfactory
conditions and is therefore deferred.
Emmanuel Grenier, Cnova CEO, commented:
“In a timid 3rd quarter market, we confirmed our
relevant positioning with a strong ecommerce platform benefiting
from a growing loyal customer base and the acceleration of our
digital marketing solutions.In this soft market, we have launched
several actions to maintain our growth dynamics. In light of this
situation, Cnova is no longer in position to confirm its guidance
released in June.On the B2B side, C-Logistics and Octopia confirmed
their commercial dynamic, notably with contracts signed with major
e-commerce players and retailers confirming our strategic route on
this segment.”
Third Quarter 2021 Key
Figures
Cnova N.V. |
Third Quarter
(1) |
Change |
2021 |
2020 |
Key
operational metrics |
|
|
|
Traffic (million visits) |
246.3 |
252.7 |
-2.5% |
Orders
(2)
(million) |
6.4 |
6.6 |
-2.1% |
o/w
Marketplace |
4.2 |
4.4 |
-5.4% |
Items
sold (million) |
11.0 |
11.4 |
-3.5% |
o/w Marketplace |
6.1 |
6.6 |
-6.7% |
Key financial figures (€m) |
|
|
|
Total GMV |
1,006.4 |
936.2 |
+7.5% |
Ecommerce platform o/w
Direct sales |
984.3 |
917.0 |
+7.3% |
450.7 |
426.1 |
+5.8% |
o/w Marketplace (3) |
342.2 |
335.9 |
+1.9% |
o/w Services |
75.2 |
48.8 |
+53.9% |
o/w Other revenues
Octopia |
116.3 |
106.2 |
+9.5% |
22.1 |
19.2 |
+15.4% |
Total Net Sales |
528.0 |
484.6 |
+9.0% |
Third Quarter 2021
Highlights
GMV |
3Q21 |
Total
growth |
+7.5% |
Marketplace
growth |
+1.9% |
Octopia
growth |
+15.4% |
GMV posted a resilient +7.5% increase in the 3rd quarter
2021.
GMV growth was driven by:
-
Direct Sales for 2.6 points (+5.8% y-o-y), benefiting from
strengthened relationship with top international brands.
- Marketplace for 0.7 point (+1.9%
y-o-y). Cnova raised quality standards through tighter control and
selection of merchants and products resulting in a record high NPS
above 50.
- B2C Services for 2.8 points (+53.9%
y-o-y), among which Energy brought 2.1 points to Cnova growth
-
Octopia for 0.3 point (+15.4% y-o-y). Products-as-a-Service offer
benefited from a resilient growth in EMEA while
Fulfilment-as-a-Service offer continued to accelerate
(+59.3%).
Marketplace |
3Q21 |
Change vs. 3Q20 |
Marketplace
product GMV share |
43.2% |
-0.9 pt |
Marketplace
Fulfilment GMV share |
38.3% |
+2.8 pts |
Marketplace
revenues |
€44.7m |
+8.0% |
Marketplace
grew by +1.9% vs. the same period last year. Raised quality
standards led to a stabilized marketplace GMV share this quarter at
43.2%. As part of this strategy, Fulfilment by Cdiscount continued
to be very dynamic with a +35% growth in the 3rd quarter vs. last
year.
Net Sales |
3Q21 |
Total
growth |
+9.0% |
Net Sales
amounted to €528.0m, i.e. a +9.0% increase vs. 3rd quarter 2020.
This increase is mainly explained by a solid growth of Fulfilment
by Cdiscount (+35.0%) and Octopia (+15.4%) as well as dynamic
Direct Sales (+5.8%) contributing +2.6 pts to Cnova Net Sales
growth.
Business Highlights
Increasing
Marketplace revenues and
stable Marketplace
GMV share
- Direct Sales grew by +5.8% in the
3rd quarter 2021 vs. last year, driven by reinforced relations with
top international brands;
- The Marketplace grew by +1.9% in
the 3rd quarter vs. last year, with raised quality standards
applied to merchants and a record high NPS of 50;
- This led to a 43.2% Marketplace GMV
share in the 3rd quarter 2021, stable vs. the same period last
year;
- Marketplace revenue generation,
supported by CARS digital marketing, grew by
+8.0%
in the 3rd quarter vs. last year, reaching
€44.7m
and €201m over
the last twelve months, growing
+20%
vs. the previous last twelve months period.
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). It is also determinant to support the
product mix re-orientation towards recurring products
categories.
- Fulfilment by
Cdiscount kept growing at a fast pace, with a +35% GMV
increase, reaching €18.8m. A consequent effort is made to provide
always more quality by recruiting Top sellers and sign sellers with
low quality.
- 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 2.1 million eligible SKUs.
Our loyalty program
Cdiscount A Volonté
(CDAV)
grew by +10.8%,
reaching 2.4 million members. CDAV represented 41.9% of total GMV
in the 3rd quarter 2021. CDAV members show more purchase recurrence
and loyalty than non-CDAV clients.
Product mix evolution towards recurring
product categories building strong loyalty as well as increased
profitability
- Cnova initiated in 2020 a strategic
product mix evolution towards non-technical goods. This category
brings higher recurring purchase rates as well as higher margins.
Consequently, the product mix evolution aims at generating more
loyalty, repurchases and profitability. Share of non-technical
goods in GMV reached 59.9% in the 3rd quarter 2021 (+1.3 pt
compared to the same period last year).
B2C
Services showed solid
performance while widening its offer
- B2C Services GMV
amounted to €75m in the 3rd quarter 2021, up +54% vs. last
year
- Cdiscount Energie
(home energy) GMV grew by +62.3% in the 3rd quarter 2021 vs. N-1,
supported by a strong subscriber growth of +60% compared to last
year
- Cdiscount Mobile
(cell phone plans) activity performed well during the 3rd quarter
2021 with +37.9% GMV vs. N-1 and a strong subscriber growth of
+44%
- Cdiscount Voyages &
Billetterie (travel & ticketing) experienced a
significant acceleration, posting a strong +38.4% GMV growth vs.
N-1.
Enhanced customer experience and record
high NPS
- To meet new client needs, we
launched a “free shipping”
program with free delivery for all basket
amounts and all clients
as well as free express delivery whatever the basket amount
for CDAV members.
- Cnova achieved a strong
+5.6 points NPS
improvement this quarter compared to the same period last year,
thanks to intensified efforts to improve customer experience
before, during and after the sale.
- Cnova
reduced delivery
time thanks to the increase of the express
delivery share. This was supported by the development of
Marketplace express delivery options through Fulfilment by
Cdiscount and Cdiscount Express Seller.
- Cnova also carried on its “say yes
to the customer” policy, with now
90%
positive and immediate answers to Cdiscount à
Volonté customers claims and proactive preventive actions for every
abnormal event happening during the customer journey. The goal is
to reach 100% by the end of the year.
Dynamic digital marketing powered by
Cdiscount Ads Retail Solution
- Digital marketing
revenues increased by
+31%
in the 3rd quarter compared to last year, reinforcing Cnova’s most
profitable activity.
- It was 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. The number of users on the
platform has grown very quickly to reach
6,670.
- Cnova also continues to develop its
digital marketing features to reinforce its offer:
- Google Shopping
campaign management for suppliers and marketplace sellers,
benefiting from a x2.0 y-o-y increase in the 3rd quarter 2021
- Live Commerce
gives merchants and suppliers the possibility to provide customers
with qualitative content and live shopping experience with
influencers. The service posted a strong growth, both in terms of
videos released and views.
Acceleration of Octopia, the turnkey
marketplace solution for EMEA retailers and
e-merchants
- Octopia GMV experienced a
+15.4%
growth, bringing +0.3 pt of growth to Cnova, representing a
growth of
+41.1%
since the beginning of the year
- To meet the needs of its
international customers, Octopia is now available in English and
Spanish
- 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 and have consequent order
backlogs.
-
Fulfilment-as-a-Service
activity more than doubled in GMV and parcels delivery outside of
Cdiscount.com.
With
25 clients signed and 15
already launched, C Chez Vous and
C-Logistics are in line to become
leading transportation and
logistics service providers in Europe
- C Chez Vous aims
at becoming the French leader in delivery of heavy and bulky
products, reaching record high NPS of 79 for its first months of
activity.
- C-Logistics aims
at being a leading e-commerce third-party logistics player.
A true and recognized innovation
leadership with a focus
on disruptive
supply-chain innovation through
blockchain
Through its collaboration with the start-up
Ownest, Cnova is considerably enhancing products traceability along
its entire supply-chain by using blockchain technology to control
each step of the delivery process. This approach allows to track
any default until the parcels are handed over to the final
customers.
3 innovation
Awards received by Cnova
subsidiaries at the 41st
edition of the LSA Innovation Trophies:
- Environmental responsibility award
for our action on reusable packaging
- Diversity Award action in favor of
the inclusion of handicap
- Committed Product Award for the
eco-designed Ewen bed, conceived and designed by the Cdiscount
Maison teams
***
About Cnova N.V.
Cnova N.V., the French ecommerce leader, serves
10.3 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 All figures are unaudited2 Total placed orders before
cancellation due to fraud detection and/or customer non-payment3
Including CARS digital marketing
- Cnova NV_Press Release_Q3 2021
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