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    CNV   NL0010949392

CNOVA N.V.

(CNV)
Real-time Euronext Paris  -  06:09 2022-09-26 am EDT
3.980 EUR   -0.50%
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07/28CNOVA NV 2022 Second Quarter Activity & First Half Financial Performance
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CNOVA N : Third Quarter 2021 activity & update

10/08/2021 | 08:12pm EDT

Press Release

October 8, 2021

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-housedigital 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-Serviceoffer at +36.5% (€65m) and Fulfilment-as-a-Serviceactivity at +149.3%. The commercial ramp-upof Merchants- and Marketplace-as-a-Serviceoffers is accelerating. 5 contracts with leading retailers and e-commerceplayers 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.

Press Release

October 8, 2021

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

-2.1%

6.6

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

984.3

917.0

+7.3%

o/w Direct sales

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

116.3

+9.5%

106.2

Octopia

22.1

+15.4%

19.2

Total Net Sales

528.0

484.6

+9.0%

Third Quarter 2021 Highlights

GMV

3Q21

Total growth

+7.5%

Marketplace growth

+1.9%

Octopiagrowth

+15.4%

GMV posted a resilient +7.5% increase in the 3rd quarter 2021.

  1. All figures are unaudited
  2. Total placed orders before cancellation due to fraud detection and/or customer non-payment
  3. Including CARS digital marketing

Press Release

October 8, 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 above50.
  • B2C Services for 2.8 points (+53.9% y-o-y), among which Energy brought 2.1 points to Cnova growth
  • Octopiafor 0.3point (+15.4%y-o-y).Products-as-a-Serviceofferbenefitedfrom aresilient growth in EMEAwhile Fulfilment-as-a-Serviceoffer 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 amountedto €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 twelvemonths period.

Press Release

October 8, 2021

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-orientationtowards 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 withlow 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 morepurchase recurrence and loyalty than non-CDAVclients.

Product mix evolution towards recurringproductcategories 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 mixevolutionaimsat generating moreloyalty, repurchasesand 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% comparedto last year.
  • CdiscountMobile (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 sameperiod last year, thanks to intensified effortsto improvecustomerexperiencebefore, 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 ExpressSeller.
  • 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.

Press Release

October 8, 2021

Dynamic digital marketing powered by Cdiscount Ads RetailSolution

  • Digital marketingrevenuesincreasedby +31% inthe 3rd quarter comparedto 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 promotetheir 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:
  1. Google Shopping campaign management for suppliers and marketplace sellers, benefiting from a x2.0 y-o-y increase in the 3rd quarter 2021
  1. Live Commerce gives merchants and suppliers the possibility to provide customerswith 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% sincethe beginning of the year
  • To meet the needs of its international customers, Octopia is now available in English and Spanish
  • The commercial ramp-upis very promising and still accelerating:
  1. Merchants-as-a-Serviceand Marketplace-as-a-Servicesolutions already

convincedseveral internationalplayers andhave consequent order backlogs.

  1. 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 aimsat being a leading e-commercethird-party logistics player.
  1. 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

This is an excerpt of the original content. To continue reading it, access the original document here.

Disclaimer

Cnova NV published this content on 08 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 October 2021 00:11:08 UTC.


© Publicnow 2021
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Financials
Sales 2021 2 166 M 2 090 M 2 090 M
Net income 2021 -50,6 M -48,8 M -48,8 M
Net Debt 2021 508 M 490 M 490 M
P/E ratio 2021 -46,3x
Yield 2021 -
Capitalization 1 374 M 1 325 M 1 325 M
EV / Sales 2020 0,64x
EV / Sales 2021 1,33x
Nbr of Employees 2
Free-Float 0,63%
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Jean-Yves Haagen Chairman
Pascal Rivet Chief Compliance Officer
Ronaldo Iabrudi dos Santos Pereira Vice Chairman
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