CNOVA N.V. Preliminary 1H23 Financial Performance Press Release
CNOVA N.V.Preliminary
financial performance at the end of June
AMSTERDAM – July 26, 2023, 21:30 CEST Cnova N.V.
(Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”), in the context
of the conciliation procedure in which the Company’s controlling
shareholder Casino, Guichard-Perrachon S.A. (“Casino”) is engaged1
and is currently negotiating a term sheet with the Consortium,
today provides an update on its GMV, net sales, EBITDA and EBIT
performance in the first half of 20232.
Cnova accelerated its
shift towards a more profitable model, as
illustrated by the sharp increase in gross margin
rate which stands at
29.7% in 1H23
(+7pts vs. 22)
and the doubling of its EBITDA:
-
Overall GMV
decreased by -14% like-for-like3
in a still challenging
market environment marked by a decreasing trend in High
Tech and Domestic Appliances categories
-
Growing Marketplace
revenues at €91m in 1H23 (+2% vs. 22, +28% vs. 19) with a
slightly decreasing GMV by -3.1% compared to last year, along with
a record high GMV share in 1H23 at 58% (+9pts vs. 22, +20pts vs.
19)
-
Growing Advertising
revenues at €35m in 1H23 with a regular growth (+5% vs.
22, x2.1 vs. 19) and an increase in GMV take rate standing at 3.8%
for 1H23 (+0.8pt vs. 22, +2.4pts vs. 19)
- B2C
Services GMV at €80m (+21% vs. 22) mostly driven by Travel
activities (+16% vs. 22)
- Octopia
B2B revenues at €9m (+43% vs. 22) with 6 clients launched
for Marketplace solutions and increasing number of parcels shipped
for Fulfilment clients such as Adeo and Too Good to Go
- C-Logistics
B2B revenues at €6m in 1H23 (x8 vs. 22), with the launch
of two new clients and an increase in the number of shipped parcels
for external clients (x6 vs. 22)
Doubling EBITDA in 1H23
amounting to €34m (+€19m vs. 22)
thanks to our focus on profitable sales for the direct sales
business, growing Advertising and Marketplace revenues along with
cost saving plan. Efficiency plan to recalibrate SG&A
and CAPEX by the end of 2023 is on track to reach
the July 2022 guidance (€75m savings target vs. 21) reinforced by a
€15m ad-on savings plan announced in April 2023 |
|
Preliminary GMV
performance(€m)
|
|
2023Half year |
2022Half year4 |
|
Change vs. 2022 |
| |
|
Reported |
L-f-L5 |
| Total
GMV |
|
1,380 |
1,785 |
|
-23% |
-14% |
|
Ecommerce platform |
|
1,337 |
1,734 |
|
-23% |
-14% |
|
o/w Direct sales |
|
464 |
679 |
|
-32% |
|
o/w Marketplace |
|
647 |
668 |
|
-3% |
| Marketplace
share |
|
58.3% |
49.6% |
|
+8.7pts |
|
o/w B2C services |
|
80 |
150 |
|
-46% |
+21% |
|
o/w Other revenues |
|
146 |
237 |
|
-39% |
+1% |
| B2B
activities |
|
43 |
50 |
|
-14% |
|
o/w Octopia B2B revenues |
|
11 |
8 |
|
+43% |
|
o/w Octopia Retail & others |
|
25 |
41 |
|
-39% |
|
o/w C-Logistics |
|
7 |
1 |
|
x8 |
Preliminary financial performance at the
end of June - unaudited
|
Cnova N.V.(€m) |
Half Year |
Change |
|
2023 |
20226 |
vs. 2022 |
|
GMV |
1,380.2 |
1,784.7 |
-22.7% |
| Net sales |
612.5 |
874.3 |
-29.9% |
| Gross
margin |
181.7 |
197.7 |
-8.1% |
| As a %
of Net sales |
29.7% |
22.6% |
+7.0pts |
| As a % of
GMV |
13.2% |
11.1% |
+2.1pts |
| SG&A
(excl. D&A) |
147.8 |
-183.1 |
-19.3% |
| As a %
of Net sales |
-24.1% |
-20.9% |
-3.2pts |
| As a % of
GMV |
-10.7% |
-10.3% |
-0.4pts |
|
EBITDA |
33.9 |
14.6 |
+131.8% |
| As a %
of Net sales |
5.5% |
1.7% |
+3.9pts |
| As a % of
GMV |
2.5% |
0.8% |
+1.6pts |
|
Operating EBIT |
-14.3 |
-33.5 |
-57.4% |
Net sales amounted to €612m in
the 1st half 2023, a -30% decrease compared to 2022 and a -23%
like-for-like7 decrease compared to 2022. Net sales evolution has
been impacted by the product mix shift from direct sales towards
commission-based activities, leading to an improvement of
profitability: Marketplace revenues have increased by +1.8% vs. 22
and B2C services8 revenues showed a record performance (+27.2% vs.
22), mostly driven by Travel activities. Octopia B2B revenues have
grown by +43%, mainly with 6 clients launched for its
Marketplace-as-Service solutions and an increase in the number of
parcels shipped by +30% vs. 22 for Fulfilment-as-a-Service clients
such as Adeo and Too Good to Go. C-Logistics B2B revenues have
increased by x8 vs. 22, driven by the launch of 2 new clients and
the increase in the number of shipped parcels. Advertising services
revenues have increased by +5% vs. 22, amounting to €35m in the 1st
semester 2023.
Gross margin was €182m in the
1st half 2023, representing 29.7% of net sales, increasing by +7pts
vs. 22 and by +12pts compared to the pre-pandemic level (1st half
of 2019). This gross margin increase over the past years
demonstrates the success of the implementation of the strategic
plan, with Marketplace revenues growing by +2% compared to last
year (+28% vs. 19) and Advertising revenues increasing by +5%
compared to last year (x2 vs. 19). Compared to 2022, direct sales
margin was negatively impacted by an additional destocking
initiative focused on SKUs with the highest inventory turnover to
adjust inventories to current level of activity. Destocking
initiatives on direct sales had an impact of -4.4pts on gross
margin.
SG&A (excluding
D&A) costs amounted to €-148m in the 1st semester
2023, representing 24.1% of net sales, decreasing by -3pts vs. 22.
During the 2nd quarter 2022, an Efficiency plan to recalibrate
SG&A structure to current level of activity was launched.
-
Fulfilment costs (excluding
D&A) stood at 7.7% of net sales (-0.6pt vs. 22),
decreasing by €15m compared to last year. Variable fulfilment costs
(logistics, after sales and payment processing) were favourably
impacted by lower volumes in the 1st semester 2023 compared to the
1st semester 2022. Fixed fulfilment costs benefited from the
Efficiency Plan launched during the 2nd quarter 2022. Fulfilment
costs are also positively impacted by initiatives aiming at
optimizing costs associated to warehouses: improvement of
warehouses productivity, simplification of warehouses network and
close monitoring of warehouses capacity to adapt to business
levels. Approximatively 50k sqm of warehouses were closed in June
2023, with further capacity optimization planned for the 2nd half
2023
-
Marketing costs (excluding
D&A) represented 5.6% of net sales (+0.1pt vs. 22),
decreasing by €16m compared to last year, mostly due to lower
volumes in the 1st semester 2023 driving down variable acquisition
marketing costs along with benefits from the Efficiency Plan,
notably savings on media campaigns and tools
-
Technology & Content costs (excluding
D&A) stood at 6.9% of net sales (-1.4pt vs. 22),
decreasing by €6m compared to last year, mainly impacted by the
Efficiency Plan launched in the 2nd quarter 2022 to slow down
Octopia’s commercial ramp-up and associated staff costs incurred,
rationalize the Direct Sales dedicated FTEs while continuing to
reinforce marketplace workforce, notably teams dedicated to
sellers’ care and support
-
General & Administrative expenses
(excluding D&A) represented 3.9% of net sales
(-1.3pt vs. 22) and 2.2% of e-commerce GMV9 (-0.5pt vs. 22). The
1st semester 2022 was impacted by positive non-recurring items.
Adjusted from these impacts, General & Administrative costs
would amount to €2m vs. 22 (-8%) despite inflation
Consequently, EBITDA amounted
to €34m, increasing by €19m compared to last year, representing
5.5% of net sales (+3.9pts vs. 22).
Depreciation & Amortization
(D&A) amounted to €-48m in the 1st semester 2023. In accordance
with IFRS 16, Depreciation & Amortization include the
amortization of the right-of-use asset which represents lessees’
right to exploit leased elements over the duration of a lease
agreement, which were impacted by the rationalization of
warehousing capacities to adapt to business levels, with
significant impacts expected in the 2nd half of 2023 and full
impacts expected in 2024.
Operating EBIT amounted to
€-14m, increasing by €19m vs. 22, with steady Depreciation &
Amortization compared to last year.
***
This press release was prepared solely for
information purposes and should not be construed as a solicitation
or an offer to buy or sell securities or related financial
instruments. Likewise, it does not provide and should not be
treated as providing investment advice. It has no connection with
the specific investment objectives, financial situation or needs of
any receiver. No representation or warranty, either express or
implied, is provided in relation to the accuracy, completeness or
reliability of the information contained herein. Recipients should
not consider it as a substitute for the exercise of their own
judgement. All the opinions expressed herein are subject to change
without notice.
Forward-looking statements
This press release may include forward-looking
statements. These forward-looking statements can be identified by
the use of forward-looking terminology, including the terms as
“believe”, “expect”, “anticipate”, “may”, “assume”, “plan”,
“intend”, “will”, “should”, “estimate”, “risk” and or, in each
case, their negative, or other variations or comparable
terminology. These forward-looking statements include all matters
that are not historical facts and include statements regarding
Cnova’s and/ or the Casino Group’s intentions, beliefs or current
expectations concerning, among other things, Cnova’s and/or the
Casino Group’s plans, objectives, assumptions, expectations,
prospects and beliefs and statements regarding other future events
or prospects. By their nature, forward-looking statements involve
risks and uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future.
These forward-looking statements reflect Cnova’s
and/or the Casino Group’s current expectations, intentions or
forecasts of future events, which are based on the information
currently available and on assumptions made by Cnova and/or the
Casino Group. The forward-looking statements and information
contained in this announcement are made as of the date hereof and
Cnova and/or the Casino Group is under no obligation to update
publicly or revise any forward-looking statements or information,
whether as a result of new information, future events or otherwise,
unless so required by applicable laws. All subsequent written or
oral forward-looking statements attributable to Cnova and/or the
Casino Group, or persons acting on Cnova’s and/or the Casino
Group’s behalf, included in but not limited to press releases
(including on Cnova’s and/or the Casino Group’s website), reports
and other communications, are expressly qualified in their entirety
by the cautionary statements contained throughout this press
release.
***
About Cnova
N.V.
Cnova N.V., the French ecommerce leader, serves
8.0 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.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 Refer for more context to
https://www.groupe-casino.fr/en/announcements/ and
https://www.cnova.com/investor-relations/press-releases/ ,
especially the press release & associated presentation
published by Cnova and Casino on June 26th, 2023
https://www.cnova.com/wp-content/uploads/2023/06/2023-06-26_Cnova-NV_PR_Information-re-Conciliation-and-Activity.pdf
https://www.groupe-casino.fr/wp-content/uploads/2023/06/2023-06-26-CP-Communication-Groupe-Casino.pdf
2 All figures contained herein are unaudited and
may differ from the figures that will be presented in our 2023
half-year report. The Company intends to update these figures in
the course of its ordinary quarterly and (semi) annual reporting.3
Like-for-like figures exclude CChezvous, Géant and Cdiscount Energy
for 1H224 2022 figures have been restated to consider CChezVous
disposal (discontinued operations)5 Like-for-like figures exclude
CChezvous, Géant and Cdiscount Energy for 1H226 2022 figures have
been restated to consider CChezVous disposal (discontinued
operations)7 Like-for-like figures exclude CChezvous, Géant and
Cdiscount Energy for 1H228 Excluding Energy9 E-commerce GMV is
equal to direct sales GMV combined to marketplace GMV
- Cnova Preliminary 1H23 Financial Performance Press Release
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