CNOVA NV 2023 First Half Financial Performance
CNOVA N.V.First Half
Financial performance & Second Quarter 2023
activityUpdate on
Conciliation Proceedings
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-like1
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 one new client 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:
-
SG&A (excluding D&A) amounted to €148m,
improving by €35m vs. 22 and by €38m vs. 21
- Capital
expenditures stood at €31m, improving by €16m vs. 22 and
€22m vs. 21
Free cash-flows from continuing activities before financial
interest and other products
& charges amounted to €-183m
in the 1st semester 2023, mostly impacted by business seasonality
and the decrease in trade payables driven by credit insurers
guarantees reductions, partly offset by voluntary destocking and
rationalization of capital expenditures.Continuous
development of Cnova’s ESG policy:
- “More
sustainable products” SKUs: 15.8% of Cdiscount’s Product GMV in
2Q23 (+4.7pts vs. 22)
-
C-Logistics decrease in energy consumption by -26% vs. last year
(from January to April)
|
AMSTERDAM – July 28, 2023, 19:00 CEST Cnova N.V. (Euronext
Paris: CNV; ISIN: NL0010949392) (“Cnova”) today announced its
second quarter activity and first half unaudited financial results
for 2023.
Thomas Métivier, Cnova’s CEO, commented:
“In the 1st semester 2023, Cnova has pursed its
transformation plan focusing on shifting towards a profitable model
with the voluntary evolution from direct sales to marketplace
revenues. All Cnova’s teams have been concentrated on improving the
profitability of our direct sales assortment, accelerating the
growth of our advertising and marketplace revenues and developing
our B2B activities with Octopia and C-Logistics.
Combined with the Efficiency plan, these
priorities lead to a strong improvement in our EBITDA from last
year and from 2019, proving the relevance of our business model and
of our transformation plan.
We have also started to deploy Generative
Artificial Intelligence in our operations to improve customer and
partner experience and enhance process efficiency with first
results already visible and huge opportunities to accelerate our
platform model.”
Financial highlights
|
Financial
performance(€m) |
|
2023Half year |
2022Half year2 |
|
Change vs. 2022 |
| |
|
Reported |
L-f-L3 |
| 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 |
|
Total Net sales |
|
612.5 |
874.3 |
|
-29.9% |
-23.1% |
|
EBITDA4 |
|
33.9 |
14.6 |
|
+€19.3m |
|
% of Net sales |
|
5.5% |
1.7% |
|
+3.9pts |
|
Operating EBIT |
|
-14.3 |
-33.5 |
|
+€19.2m |
|
% of Net sales |
|
-2.3% |
-3.8% |
|
+1.5pts |
| Net Financial
Result |
|
-26.8 |
-42.5 |
|
+€15.6m |
| Net Profit
from continuing operations |
|
-65.4 |
-69.4 |
|
+€4.0m |
|
Net Profit from continuing
operations before change in
DTA5 related to tax
losses (non-cash) |
|
-47.4 |
-69.4 |
|
+€22.0m |
| Free
cash-flows |
|
1H23 |
1H22 |
|
Change |
| (€m) |
|
|
vs. 22 |
|
EBITDA |
|
33.9 |
14.6 |
|
+19.3 |
| (-) IFRS 16
rents |
|
-17.7 |
-17.8 |
|
+0.1 |
| (+/-) Change
in working capital |
|
-169.8 |
-66.7 |
|
-103.1 |
| (-) Income
taxes paid |
|
-1.7 |
-1.8 |
|
+0.1 |
| (-) Capital
expenditures |
|
-32.3 |
-47.6 |
|
+15.4 |
| (+) Cash from
disposals |
|
4.8 |
20.5 |
|
-15.7 |
|
Free cash-flows6 |
|
-182.8 |
-98.7 |
|
-84.0 |
|
Free cash-flows excluding
one-offs7 |
|
-170.5 |
-195.8 |
|
+25.4 |
|
Net Financial Debt |
|
-582.5 |
-469.6 |
|
-112.9 |
|
Information on Casino
group and Cnova liquidityOn June
26, 2023, the Casino group communicated on the implementation of
various measures to ensure its liquidity throughout the entire
conciliation period. On July 17, 2023, the Casino group
communicated on the revised offer, received on July 15, 2023, from
EP Global Commerce a.s., Fimalac and Attestor (the “Consortium”),
to strengthen the Casino Group equity capital. Cnova is part of the
perimeter of the transaction.On July 28, 2023, Casino Group
announces that it has, under the aegis of the conciliators and of
the Comité Interministériel de restructuration industrielle (CIRI),
entered into an agreement in principle on 27 July 2023 with the
Consortium and some of its main creditors aiming at strengthening
the Group's equity structure and restructuring its financial debt
(the “Agreement in Principle”). The Agreement in Principle
confirmed Cnova being part of the perimeter.The semi-annual
accounts of Cnova for the period ended on June 30, 2023, have been
prepared based on the going concern principle. This principle
relies on the assessment of liquidity risk at Cnova and Casino
group level in light of the cash flow projections for 2023,
reviewed by the Accuracy firm, and the need of the successful
implementation of the Agreement in Principle. Those cash flow
projections also rely among other factors, on the current level of
business activity and the existing payment terms with suppliers.In
view of the legal steps still to be taken to implement the
Agreement in Principle (as specified on page 11 in the Casino group
presentation of the Agreement in Principle on restructuring plan8),
the situation as of today is still uncertain as to the Casino group
and/or Cnova ability to continue as a going concern and, therefore,
Cnova may be unable to realize its assets and discharge its
liabilities in the normal course of business.Based on the above, as
part of their report issued on July 28, 2023, Cnova’s Auditors
referred as an observation to the business material uncertainty as
an area of emphasis and concluded an unqualified opinion on their
review of the 2023 half year report and financial
statements. |
Conciliation: information on Casino
group and Cnova liquidity
As of June 30, 2023, net financial debt reached
€582m and net current liabilities are €189m (excluding cash and
cash equivalents and current financial debt). As per June 30, 2023
Cnova has a negative equity of €442m. The negative equity is mainly
caused by the accumulated losses for €605m, the decrease of capital
and share exchange between Cnova NV and Cnova Brazil in 2016. For
the first six months of 2023, the net loss amounts to €70m and the
negative free cash flow before financial expenses to €183m.
As per June 30, 2023, Cnova had a credit line of
€700m with its parent, Casino Guichard-Perrachon set in order to
cover the needs of Cnova. As part of the cash pool agreement with
Cnova and its subsidiaries, unused credit lines amounted to €253m
as of June 30, 2023.
The term of the cash pool agreement is July 31,
2026 and can be terminated by mutual consent.
In addition, Casino Guichard-Perrachon confirmed
through a letter dated March 28, 2023 that it will provide
financial support to Cnova N.V. to assist Cnova in meeting its
liabilities as and when they fall due up to a maximum of €100m in
addition to the abovementioned amount of €700m and only to the
extent that funds are not otherwise available to Cnova N.V. to meet
such liabilities for a period of at least 18 months from the date
of Cnova’s 2022 consolidated financial statement approval, March
30, 2023.
The cash pool arrangement (Current Account
Agreement) immediately terminates if Casino no longer controls,
directly or indirectly, Casino Finance or Cnova or its European
subsidiaries, as the case may be, or in case of bankruptcy of a
party.
The sequential degradation of the rating of
Casino group by rating agencies implied net financial debt
deterioration at Cnova level since April 2023. Working capital of
Cnova is significantly impacted due to reductions by credit
insurers, implying earlier payments to suppliers and consequently
deterioration of net cash flows.
On 25 May, 2023, a conciliation proceeding for
the benefit of the French subsidiaries of Cnova (Cdiscount, Maas,
C-Shield, C-Technology, C-Logistics, Carya and CLR) was opened.
These conciliation proceedings are part of the more global context
of the conciliation proceedings opened for the benefit of the
Casino Group.
As part of the conciliation proceeding, Casino
group received on July 15, 2023 a revised offer from EP Global
Commerce a.s., Fimalac and Attestor (the “Consortium”) to
strengthen the Casino group’s equity capital. Cnova is part of the
perimeter of the transaction.
On July 28, 2023, Casino Group announces that it
has, under the aegis of the conciliators and of the Comité
Interministériel de restructuration industrielle (CIRI), entered
into an agreement in principle on 27 July 2023 with the Consortium
and some of its main creditors, especially the ones holding more
than two-thirds of the Term Loan B, aiming at strengthening the
Group's equity structure and restructuring its financial debt (the
“Agreement in Principle”). The Agreement in Principle confirmed
Cnova being part of the perimeter of the transaction.
In view of the legal steps still to be taken to
implement the Agreement in Principle (as specified on page 11 in
the Casino group presentation of the Agreement in Principle on
restructuring plan7), the situation as of today is still uncertain
as to the Casino group and/or Cnova ability to continue as a going
concern and, therefore, Cnova may be unable to realize its assets
and discharge its liabilities in the normal course of business.
Also, it should be noted that on June 26, 2023,
the Casino group communicated on the implementation of various
measures to ensure its liquidity throughout the entire conciliation
period (lasting until September 25, 2023 and extended, if
necessary, until October 25, 2023 at the latest), including:
- Conclusion of an
agreement in principle with the French government to defer payment
of the Group’s tax and social security liabilities due between May
and September 2023, representing an amount of circa €300m; and
- A standstill
request, for the duration of the conciliation proceedings (i.e.
until the October 25, 2023 at the latest), of any payment of
interests and other fees (i.e. circa €130m) and instalments of
principal (i.e. circa €70m). The conciliators sent to the relevant
creditors the standstill requests and asked them to waive their
right to claim any accelerated payment on the basis of any event of
default under the financial covenants as of June 30, 2023 and
September 30, 2023, and more generally, any event of default or
cross-default event that may arise as a result of the suspension of
the above-mentioned payments
Based on the items mentioned above and the sale
by Casino of its residual stake in Assaí, which was completed on
June 23, 2023 for net proceeds after costs and taxes estimated at
€326m (cf. press release of June 23, 2023), Casino group does not
anticipate any liquidity issue until the end of the conciliation
period (i.e. until October 25, 2023). Assuming the continuation of
the standstill in respect of financial charges and debt repayments
after the conciliation period, and based on the sale by Casino to
Groupement Les Mousquetaires of the first group of sales outlet
representing a turnover of €549m excluding VAT (cf. press release
dated May 26, 2023), Casino group anticipates that there should be
no liquidity issue until the end of the 2023 financial year
assuming the level of activity of the brands remain the same in the
coming months (notably the recovery of hypermarkets/supermarkets)
and on the continuation of suppliers terms of payment (as is
currently the case).
In the context of the conciliation, Cnova has
undertaken various measures to mitigate the cash consumption: (i)
the acceleration of its transformation towards a marketplace
oriented business model, (ii) the reinforcement of the Efficiency
plan launched in 2022 with additional measures in 2023, (iii) an
inventory reduction plan to adapt as per new direct sales volumes,
and (iv) the request of the standstill of the state guaranteed loan
(“PGE”) which was accepted by the bank syndicate as of July 27,
2023 for the conciliation period.
Up to the date of the authorization by the Board of Directors of
these interim financial statements, Cnova has had unrestricted
access to the defined financing facilities of the Casino group. In
relation to the going concern assessment the continued unrestricted
access to these defined financing facilities for the coming year
including, if and when required, additional funding under the
comfort letter provided by the Casino group, is a significant
judgement and will depend on the successful implementation of the
Agreement in Principle, as part of the conciliation
proceedings.
In addition, as part of the going concern
assessment, management of Cnova assumes no significant
deterioration in performance compared to the business plan and cash
forecast (as published on June 26, 2023) for the coming twelve
months and no significant deterioration compared to current terms
of payment for the key suppliers of Cnova.
It should be noted that these cash flow
forecasts inherently involve significant assumptions and
uncertainties at Cnova level, as they depend among other factors,
on the level of business activity, the expected payment terms with
suppliers in the coming months, the successful implementation of
the Agreement in Principle agreed upon on July 27, 2023 between
Casino group, the Consortium and some of the main creditors aiming
at strengthening the Group's equity structure and restructuring its
financial debt.
The aforementioned events and conditions indicate a material
uncertainty exist that may cast notable doubt on Cnova’s ability to
continue as a going concern and, therefore, Cnova may be unable to
realize its assets and discharge its liabilities in the normal
course of business.
Despite the identified material uncertainty towards Cnova’s
going concern assumption, taking into account the assumptions in
the cash forecast of Cnova and the positive expected outcome of the
conciliation process at the level of Casino Group and Cnova, the
Board of Directors considers it appropriate to prepare the interim
financial statements on the going concern assumption and do not
include any adjustments to the carrying amounts and classification
of assets, liabilities and reported expenses that may otherwise be
required if the going concern basis was not appropriate.
Operational highlights
Operational highlights of the 1st half of 2023
demonstrate the successful shift towards Cnova’s marketplace
platform with a GMV share increasing by +8.7pts, dynamic
Advertising services revenues increasing by +5% in the 1st semester
2023 and a steady NPS above +50, amongst the best satisfaction
rates on the market.
Number of orders and items sold decreased by 15%
and 19% respectively compared to last year, with a slightly
increasing average number of items sold per order, while gross
margin as a % of net sales grew by +7pts vs. 22, illustrating the
positive impacts of our various actions to improve
profitability.
Facing challenging market conditions, Cnova
overall GMV decreased by -14% like-for-like9 in the 1st semester
2023 confirming Cnova’s strategic choice to accelerate its platform
revenues with the development of its marketplace, advertising
services and B2B activities with Octopia and C-Logistics. In this
context of strong inflation headwinds, Cnova has launched dedicated
offers and discounts to take part in the fight against
inflation.
Furthermore, the 1st semester 2022 benefited
from a strong base compared to the 1st semester 2023: 1H22 was
before the drop in consumption index which occurred in April and
May 2022 and GMV was boosted by a higher 4X payment take rate.
|
Business KPIs |
|
2023Half year |
2022Half year10 |
|
Changevs. 2022 |
| Marketplace
GMV share |
|
58.3% |
49.6% |
|
+8.7pts |
| Marketplace
revenues (€m) |
91.4 |
89.7 |
|
+1.8% |
| Advertising
services revenues (€m) |
34.8 |
33.2 |
|
+5% |
| Traffic
(million visits) |
433.1 |
494.2 |
|
-12% |
| Number of
orders (millions) |
9.6 |
11.3 |
|
-15% |
|
o/w Marketplace orders |
7.6 |
8.0 |
|
-5% |
| Items sold
(millions) |
15.3 |
18.8 |
|
-19% |
|
o/w Marketplace items sold |
11.6 |
11.9 |
|
-2% |
2nd
quarter highlights
|
GMV |
2Q23 vs. 22 |
| Total
like-for-like5 GMV evolution |
-13% |
| Net sales
like-for-like5 evolution |
-22% |
| Marketplace
GMV evolution |
-2% |
|
Travel GMV growth |
+3% |
In the 2nd quarter 2023, Cnova overall GMV decreased by
-13% like-for-like11, with positive dynamics compared to the 1st
quarter 2023 (+2pts vs. 1Q23). This year-on-year evolution was
driven by:
-
Direct sales contributing -12.3pts (-30.8% y-o-y),
as a result of the on-going voluntary strategic evolution from
direct sales to marketplace, mostly for non-technical goods with
low margins, as illustrated by the improvement of profitability for
Domestic Appliances and Home categories in the 1st semester 2023.
Direct sales were also impacted by a decreasing marketing
intensity, as part of the Efficiency Plan, which supported GMV
growth
-
Marketplace contributing -1.0pt (-2.5% y-o-y) with
the progressive shift towards a marketplace model offset by savings
plans reducing marketing intensity which supported GMV growth.
Marketplace delivered +8.4pts in GMV share in 2Q23 and Fulfilment
marketplace GMV share has increased by +0.5pt, standing at 51.3% in
2Q23
-
B2C Services12 contributing
+0.5pt (+9.5% y-o-y) especially due to Cdiscount Travel (+3% vs.
22)
-
B2B activities contributing
+0.8pt (x2 y-o-y) with:
-
C-Logistics B2B contributing +0.5pt (x9 y-o-y)
notably driven by an increasing number of shipped parcels for
external clients
-
Octopia B2B contributing +0.3pt (+54.0% y-o-y)
driven by Merchants-as-a-Service and Marketplace-as-a-Service (x5
vs. 22) and Fulfilment-as-a-Service (+39% vs. 22)
|
Clients |
2Q23 |
|
Active clients over the last 12 months (#m) |
8.0 |
|
CDAV subscriber base13 (#m) |
1.7 |
|
CDAV GMV share |
40.1% |
The loyalty program
Cdiscount à Volonté (CDAV)
represented a 40.1% of total GMV in the 2nd quarter 2023, compared
to 38.5% of total GMV in the 1st quarter 2023. Cdiscount loyalty
program encompasses 1.7m members as at end of June 2023, with
discounts and funds offered to clients enabling to strengthen
customer loyalty. In the 1st semester 2023, the loyalty program was
marked by a decreasing share of clients with free
subscription.
|
Marketplace |
2Q23 |
vs. 2022 |
| Marketplace
product GMV share |
60.0% |
+8.4pts |
|
Cdiscount express seller GMV share |
15.8% |
+1.4pts |
|
Fulfilment by Cdiscount GMV share |
35.5% |
-0.9pts |
| Total
Fulfilment GMV share |
51.3% |
+0.5pts |
| Marketplace
revenues (€m) |
45.5 |
+2.3% |
| Advertising
services revenues (€m) |
18.0 |
+1.1% |
First Half
2023 financial performance
|
Cnova N.V.(€m) |
Half Year |
Change |
|
2023 |
202214 |
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 |
+€35.3m |
| 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 |
+€19.3m |
| 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 |
+€19.2m |
| Net financial
income / (expenses) |
-26.8 |
-42.5 |
+€15.6m |
| Net profit /
(loss) from cont. operations |
-65.4 |
-69.4 |
+€4.0m |
|
Net Profit from cont.
op. before change in
DTA15 related to tax losses
(non-cash) |
-47.4 |
-69.4 |
+€22.0m |
Net sales amounted to €612m in
the 1st half 2023, a -30% decrease compared to 2022 and a -23%
like-for-like16 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 services17 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 one new client 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 rate 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 most unfavorable inventory
turnover to adjust inventories to current level of activity.
Destocking initiatives on direct sales had a negative impact of
-4.4pts on gross margin rate.
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),
improving 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),
improving 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),
improving 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 GMV18 (-0.5pt vs. 22). The
1st semester 2022 was impacted by positive non-recurring items.
Adjusted from these impacts, General & Administrative costs
would improve by €2m vs. 22 (-8%) despite inflation, thanks to the
Efficiency Plan
Consequently, EBITDA amounted
to €34m, improving 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, improving by €19m vs. 22, with steady Depreciation &
Amortization compared to last year.
Other non-recurring income /
(expenses) amounted to €-3m in the 1st half 2023,
decreasing by €-13m compared to last year. The 1st half of 2022 was
impacted by costs related to the Efficiency plan and asset
impairments partly offset by a positive gain on Floa assets
disposal. In comparison, the 1st half of 2023 was mainly impacted
by conciliation, transformation and restructuring costs.
Net financial expenses - mainly related to
4-installment payment solutions offered to customers (“4X” -
amounted to €-27m, improving by €16m compared to last year, mostly
due to the decrease in 4X take rate from 47% in 1H22 to 44% in
1H23, with the optimization of customers’ risk profiles which
enabled a reduction in costs of risk, partly offset by higher
financial interests.
Net loss amounted to €-66m,
improving by €4m compared to last year. Adjusted for change in
deferred tax assets related to tax losses (non-cash items at
C-logistics level), net loss amounts to €-47m, an increase of €22m
compared to last year mainly driven by positive impacts from EBITDA
and Net financial expenses.
| Free
cash-flows |
|
1H23 |
1H22 |
|
Change |
| (€m) |
|
|
vs. 22 |
|
EBITDA |
|
33.9 |
14.6 |
|
+19.3 |
| (-) IFRS 16
rents |
|
-17.7 |
-17.8 |
|
+0.1 |
| (+/-) Change
in working capital |
|
-169.8 |
-66.7 |
|
-103.1 |
| (-) Income
taxes paid |
|
-1.7 |
-1.8 |
|
+0.1 |
| (-) Capital
expenditures |
|
-32.3 |
-47.6 |
|
+15.4 |
| (+) Cash from
disposals |
|
4.8 |
20.5 |
|
-15.7 |
|
Free cash-flows19 |
|
-182.8 |
-98.7 |
|
-84.0 |
|
Free cash-flows excluding
one-offs 20 |
|
-170.5 |
-195.8 |
|
+25.4 |
|
Net Financial Debt |
|
-582.5 |
-469.6 |
|
-112.9 |
Free cash-flows from
continuing operations before financial
interest and other
products & charges amounted to €-183m in 1H23,
decreasing by €84m compared to the same period last year.
This year-on-year negative change primarily
stems from (i) the decrease in trade payables induced by credit
insurers guarantees reduction and (ii) impacts from one-offs in
1H22 and 1H23:
- 1H22 benefitted
from the sale of Géant inventories to Casino group, from the
disposal of Floa Bank assets to BNP Paribas and from the deferred
payment of tax and social liabilities
- 1H23 was mostly
impacted by La Banque Postale receivables factoring punctual
suspension, partly offset by remaining proceeds from the sale of
CChezVous
Excluding these one-offs, Free cash-flows from
continuing operations before financial interest and other products
& charges increased by €25m, despite trade payables negative
impact.
The variation of working
capital stands at €-170m in the 1st semester 2023, mostly
related to:
- The deterioration
of trade payables mostly related to business seasonality and
guarantees reductions by credit insurers implying earlier payments
to suppliers
- The decrease in
inventories driven by voluntary destocking, assortment
rationalization and its evolution towards products with more
favorable inventory turnover
- The reduction of
trade receivables despite the punctual suspension of La Banque
Postale factoring line
Limited capital expenditures
amounted to €-32m in the 1st semester 2023, decreasing by +€15m
compared to the 1st semester 2022, thanks to the strategic
decisions taken since the 2nd quarter 2022 within the framework of
the Efficiency plan aiming to adapt capital expenditures to the
level of activity.
Business Highlights
A record high marketplace GMV share with
positive trends compared to pre-pandemic level:
- Marketplace recorded its all-time
highest marketplace GMV share in 1H23 at 58.3% (+8.7pts vs. 22,
+20.0pts vs. 19), confirming the mix evolution towards more
marketplace revenues
- During the 1st semester 2023,
marketplace GMV has decreased (-3.1% vs. 22), in a challenging
market environment
- Marketplace revenues amounted to
€91m in the 1st semester 2023, increasing by +1.8% vs. 22 (+27.8%
vs. 19)
- Many new strategic partnerships
with Marketplace sellers were formed, including companies
specialized in childcare, consumer goods, automobile spare parts,
electronic household appliances, connected home solutions, cycling
and scooters and numerous others
- A specific strategic partnership
has been established with a company dedicated to offering a second
life to electronic devices such as scooters
- Expansion of express delivery
eligible marketplace SKUs is a key driver of growth and customer
satisfaction:
- Fulfilment by Cdiscount marketplace
GMV share stands at 35.2% for the 1st semester 2023
- Cdiscount Express Seller, launched
in 2019 for sellers able to offer express delivery to CDAV
customers, covered 15.6% of marketplace GMV in the 1st semester
2023, increasing by +2.8pts compared to the 1st semester 2022
Cnova continues the rationalization of its direct
sales assortment along with actions towards
inventories optimization, including an additional
destocking initiative focused on SKUs with the most unfavorable
inventory turnover. Inventories have been closely monitored and
adjusted to business levels over the last twelve months following
the implementation of the Transformation plan focusing on shifting
towards a profitable model with the voluntary evolution from direct
sales to marketplace.
B2C services showed a record
performance:
B2C Services GMV21, excluding Energy, amounted
to €80m in the 1st semester 2023, growing by +21% vs. 22. Cdiscount
Voyages (travel) GMV has increased by 16% vs. 22:
- In a context of strong inflation,
travel business has significantly grown particularly on recreation
parks (+58% vs. 22), foreign packages (+10% vs. 22) and transport
(+21% vs. 22)
- Cdiscount Voyages launched a
pioneering commercial initiative named “Travel Days” which occurred
from April 26th to May 9th
- Cdiscount Voyages also proposed
multiple commercial offers during this semester with airline
companies illustrating the reinforcement of airline companies’
trust in Cdiscount Voyages
Steady NPS above +50,
amongst the best satisfaction rates on the market and
rewarding our focus on customers despite the financial
constraints.
Artificial intelligence-powered
algorithms were implemented all along the customer journey
over the past months, significantly enhancing the relevance of the
Cdiscount.com search engine (+4.5pts in the search engine click
rate in June 2023 compared to June 2022) with a continuous ramp-up
of SKUs crawled since the beginning of 2022 from c. 1 million in
January 2022 to c. 2 million as of today.
Cnova is developing Generative
Artificial Intelligence to improve customer and partner
experience and enhance process
efficiency, leveraging on its +10 years Artificial
Intelligence expertise and +30 data scientists. Over the 1st
semester 2023:
- 2 use cases combining in-house
algorithms with generative Artificial Intelligence models were
successfully launched for product classification and customer
chatbot
- A new dedicated steering team was
assembled to accelerate Generative Artificial Intelligence
deployment
- +30 use cases were already
identified across all our business lines
Advertising services driven by Retail
Media dynamics:
- Advertising services revenues
reached €35m in 1H23 (+5% vs. 22), with growing GMV take rate
standing at 3.8% (+0.8pts vs. 22)
- Advertising services growth is
mainly supported by Retail Media (+16% vs. 22)
- Marketplace sellers generated a
€20m margin in 1H23 (+30% vs. 22)
- Retail Media share on total
Advertising revenues increased from 71% in the 1st semester 2022 to
79% in the 1st semester 2023
- Sponsored products performed well
in the 1st semester 2023, growing by +14% vs. 22, with a strong
increase in revenues generated for 1,000 pages viewed
- Actions have been implemented to
boost Advertising services such specific “Discover” offers to
recruit sellers and new algorithms to maximize sellers’ GMV
Octopia B2B activities recorded a strong
commercial expansion, with its turnkey marketplace solution for
EMEA retailers and e-merchants:
- On the 14th and 15th of June 2023,
Octopia Days were organized in Paris aiming to promote Octopia
brand, generate business and federate Marketplace ecosystem, with
350 participants representing 24 distribution channels, 200 sellers
and over 30 partners and sponsors
- Merchants-as-a-Service and
Marketplace-as-a-Service B2B revenues stood at €1m in 1H23 (x2 vs.
22)
- 6 clients were launched for
Marketplace-as-Service and Merchants-as-a-Service solutions
- The number of sellers onboarded on
Octopia's platforms increased by x2 since end of December 2022
- Fulfilment-as-a-Service B2B
revenues accounted for €8m in 1H23 (+36% vs. 22)
- The number of parcels shipped
increased by +30% in 1H23 vs. 22
- Octopia has accelerated its
recruitment of sellers which aim to outsource their fulfilment
solutions
- Octopia has also launched
partnerships with marketplaces such as Adeo (in France and in
Spain) and Too Good to Go in early 2023 for them to provide an
improved service quality and end-to-end solutions to final
clients
C-Logistics pursues the development of its B2B
activities. C-Logistics B2B revenues amounted to €6m in
1H23 (x8 vs. 22) with an increase in the number of shipped parcels
for external clients (x6 vs. 22)
- Since the successful launch of its
third-party logistic solution for a European sportswear company in
February 2023, C-Logistics has fulfilled approximatively 314k
parcels for its new client
- C-Logistics has also pursued the
implementation of another new client, specialized in luxury goods,
aiming to start providing its services in early 2024
C-Logistics is also optimizing its costs
and adapting its structure with the resizing of its
transportation offers. Regarding warehouses, C-Logistics has
improved its warehouses productivity by +6% between 1H22 and 1H23,
has simplified its warehouses network and is closely monitoring its
warehouses capacity to adapt to business levels.
C-Logistics ESG approach has been
pursued with specific actions related to packaging.
C-Logistics has decreased its energy consumption by -26% vs. the
same period last year (from January to April).
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 15.8% of Cdiscount’s
Product GMV in the second quarter of 2023 (+4.7pts vs. 2022).
In order to strengthen its offer on the
second-life market (smartphones, tablets, consoles and even baby
strollers), Cdiscount is positioning itself as a pioneer on
the reconditioned electric scooter market: C-Logistics
collects the scooters returned by Cdiscount customers, sends them
to our partner Envie where their teams repair them, test them,
clean them before reconditioning them. These scooters are then put
back on the market, via the Cdiscount marketplace at a reduced
price.
Cnova is also taking action to reduce
the impact of its operations:
- 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. This should be deployed on
Cdiscount’s website in 2023
- C-Logistics reinforced its
successful initiatives to delete cardboard waste and optimize its
delivery efficiency. All the actions/investments in terms of
reducing packaging (3D/2D machines, reusable packaging,
non-packaging, etc.) have made it possible to have a reduction of
the parcel emptiness on more than 86% of our less than 30kg
shipments in the first half of 2023
Cnova pursues its social and societal
commitment in favor of gender parity:
- Cnova initiated a 3-year
partnership with Make.org (an independent platform promoting the
engagement of the civil society to address social matters) to
tackle the inequalities suffered by women. Within this frame, Cnova
widely relayed Make.org’s citizen consultation across its
communication channels, contributing to its success (over 250k
French citizens participated). As the result of this consultation,
Cnova will develop job mentoring for women in the tech sector
- CNova is also a sponsor of the
“Quartiers Numériques” program of Bordeaux Mécènes Solidaires (a
territorial foundation supporting companies in their sponsorship
policy in Gironde) which aims to develop training in computer tools
and allow digital autonomy to people in difficulty, in priority
suburbs but also in rural areas. Since 2020, 2000 people have been
trained in this way in the Bordeaux region thanks to this
program
***
Cnova publishes today on its website, Friday
July, 28th, its 2023 semi-annual report.
***
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 Casino group, 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.
Half-year 2023
Consolidated Financial
Statements(1)
|
Consolidated Income Statement |
|
Half Year2023 |
Half Year2022* |
Change |
|
(€m) |
|
|
Net sales |
|
612.5 |
874.3 |
-29.9% |
| Cost of
sales |
|
-430.8 |
-676.5 |
-36.3% |
| Gross
margin |
|
181.7 |
197.7 |
-8.1% |
|
% of net sales |
|
29.7% |
22.6% |
+7.0pts |
|
SG&A(2) |
|
-196.0 |
-231.3 |
-15.3% |
| % of net
sales |
|
-32.0% |
-26.5% |
-5.5pts |
| Fulfilment
costs |
|
-61.2 |
-77.5 |
-21.1% |
| Marketing
costs |
|
-34.7 |
-50.3 |
-31.1% |
| Technology
& Content costs |
|
-74.1 |
-78.4 |
-5.5% |
|
General & Administrative costs |
|
-26.0 |
-25.0 |
+3.9% |
|
Operating
EBIT(3) |
|
-14.3 |
-33.5 |
-57.4% |
|
% of net sales |
|
-2.3% |
-3.8% |
+1.5pts |
|
Other expenses |
|
-3.0 |
10.1 |
-129.8% |
|
Operating profit / (loss) |
|
-17.3 |
-23.4 |
-26.1% |
|
Net financial income / (expense) |
|
-26.8 |
-42.5 |
-36.8% |
|
Profit / (loss) before tax |
|
-44.1 |
-65.9 |
-33.0% |
| Income tax
gain / (expense) |
|
-21.3 |
-3.5 |
n.m. |
|
Net profit / (loss) from continued operations |
|
-65.4 |
-69.4 |
-5.8% |
|
Net profit /(loss) from discontinued operations(4) |
|
-0.2 |
-0.4 |
-59.4% |
| Net
profit/(loss) for the period |
|
-65.6 |
-69.8 |
-6.1% |
|
% of net sales |
|
-10.7% |
-8.0% |
-2.7pts |
| Attributable
to Cnova equity holders(6) |
|
-63.9 |
-70.3 |
-9.1% |
|
Attributable to non-controlling interests(6) |
|
-1.6 |
0.5 |
n.m. |
|
Adjusted EPS (€)(5) |
|
-0.19 |
-0.20 |
-5.0% |
*re-presented to consider CChezVous financials
reclassified in discontinued activities
1) 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 (formerly Stootie)’s post-tax net profit for
the half-year ended June 30, 2023 and 2022 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
period6) Including discontinued
|
Consolidated Balance Sheet |
|
2023End June |
2022End December |
|
(€m) |
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
|
9.7 |
13.7 |
|
Trade receivables, net |
|
60.8 |
83.0 |
|
Inventories, net |
|
111.4 |
145.9 |
|
Current income tax assets |
|
2.0 |
2.9 |
|
Other current assets, net |
|
162.1 |
319.2 |
|
Total current assets |
|
346.0 |
564.6 |
|
Other non-current assets, net |
|
12.3 |
12.6 |
|
Deferred tax assets |
|
22.7 |
42.2 |
|
Right of use, net |
|
103.8 |
115.8 |
|
Property and equipment, net |
|
18.3 |
19.1 |
|
Intangible assets, net |
|
228.3 |
233.2 |
|
Goodwill |
|
60.7 |
60.7 |
|
Total non-current assets |
|
446.1 |
483.7 |
|
|
|
|
|
|
Assets held for sale |
|
0.0 |
0.0 |
|
|
|
|
|
|
TOTAL ASSETS |
|
792.1 |
1,048.3 |
|
EQUITY AND LIABILITIES |
|
|
|
|
Current provisions |
|
6.1 |
9.1 |
|
Trade payables |
|
227.1 |
428.9 |
|
Current financial debt |
|
100.2 |
127.9 |
|
Current lease liabilities |
|
35.8 |
35.8 |
|
Current tax and social liabilities |
|
76.6 |
67.0 |
|
Other current liabilities |
|
179.9 |
210.5 |
|
Total current liabilities |
|
625.7 |
879.2 |
|
Non-current provisions |
|
5.6 |
6.0 |
|
Non-current financial debt |
|
493.9 |
414.5 |
|
Non-current lease liabilities |
|
91.5 |
105.3 |
|
Other non-current liabilities |
|
15.8 |
18.1 |
|
Deferred tax liabilities |
|
1.2 |
1.3 |
|
Total non-current liabilities |
|
608.1 |
545.2 |
|
Share capital |
|
17.3 |
17.3 |
|
Reserves, retained earnings & additional paid-in capital |
|
-529.2 |
-465.2 |
|
Equity attributable to equity holders of
Cnova |
|
-512.0 |
-448.0 |
|
Non-controlling interests |
|
70.3 |
71.8 |
|
Total equity |
|
-441.7 |
-376.1 |
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
792.1 |
1,048.3 |
|
|
|
|
|
|
Consolidated Cash Flow Statement |
|
Half-year2023 |
Half-year2022 |
|
(€m, ended June) |
|
|
Net profit (loss) attributable to equity holders of the
Parent |
|
-63.7 |
-68.2 |
|
Net profit (loss) attributable to non-controlling interests |
|
1.6 |
0.5 |
|
Net profit (loss) from continuing
operations |
|
-65.4 |
-67.7 |
|
Depreciation and amortization expense |
|
48.5 |
48.2 |
|
(Gains) losses on disposal of non-current assets and impairment of
assets |
|
0.8 |
-18.4 |
|
Other non-cash items |
|
-3.3 |
1.9 |
|
Financial expense, net |
|
26.8 |
42.4 |
|
Current and deferred tax expenses |
|
21.3 |
3.3 |
|
Income tax paid |
|
-1.7 |
-1.8 |
|
Change in operating working capital |
|
-169.8 |
-66.7 |
|
Inventories of products |
|
34.5 |
86.1 |
|
Trade payables |
|
-202.7 |
-205.8 |
|
Trade receivables |
|
24.6 |
68.7 |
|
Others |
|
-26.2 |
-15.6 |
|
Net cash from / (used in) continuing operating
activities |
|
-142.8 |
-58.8 |
|
Net cash from / (used in) discontinued operating
activities |
|
0.2 |
-2.3 |
|
Purchase of property, equipment & intangible assets |
|
-32.2 |
-47.6 |
|
Purchase of non-current financial assets |
|
-0.1 |
-0.1 |
|
Proceeds from disposal of prop., equip., intangible assets |
|
4.8 |
20.5 |
|
Changes in loans granted (including to related parties) |
|
155.6 |
-8.8 |
|
Net cash from / (used in) continuing investing
activities |
|
128.1 |
-35.9 |
|
Net cash from / (used in) discontinued investing
activities |
|
-0.1 |
-0.1 |
|
Dividends paid to the non-controlling interests |
|
- |
-0.0 |
|
Additions to financial debt |
|
79.4 |
90.6 |
|
Repayments of financial debt |
|
-10.2 |
-3.7 |
|
Repayments of lease liability |
|
-13.9 |
-13.8 |
|
Interest paid on lease liability |
|
-3.8 |
-3.9 |
|
Interest paid, net |
|
-27.2 |
-40.5 |
|
Net cash from / (used in) continuing financing
activities |
|
24.2 |
28.6 |
|
Net cash from / (used in) discontinued financing
activities |
|
-0.4 |
- |
|
Effect of changes in foreign currency translation adjustments |
|
0.0 |
0.0 |
|
Change in cash and cash equivalents from continuing
operations |
|
9.6 |
-66.1 |
|
Change in cash and cash equivalents from discontinued
operations |
|
-0.3 |
-2.5 |
|
Cash and cash equivalents, net, at period
begin |
|
-54.3 |
17.1 |
|
|
|
|
|
|
Cash and cash equivalents, net, at period end |
|
-45.0 |
-51.4 |
|
Upcoming
Event |
|
|
|
Tuesday, August 1st, 2023at 9:30 am Central European Summer Time
(CEST) |
Cnova 2023 Half-Year ResultsConference Call & Webcast |
|
Conference Call and Webcast connection
details |
|
|
|
Conference Call Dial-In: |
|
https://register.vevent.com/register/BIff151965f90c4719824aa306b027ace1 |
|
Webcast: |
|
https://edge.media-server.com/mmc/p/2h63zwiw |
|
An archive of the webcast will be available for 12 months with the
usage of the webcast link |
|
|
1 Like-for-like figures exclude CChezvous, Géant and Cdiscount
Energy for 1H222 2022 figures have been restated to consider
CChezVous disposal (discontinued operations)3 Like-for-like figures
exclude CChezvous, Géant and Cdiscount Energy for 1H224 EBITDA:
operating profit/(loss) from ordinary activities (EBIT) adjusted
for operating depreciation & amortization5 Deferred Tax Assets6
Free cash-flows from continuing operations before financial
interest and other products & charges7 Free cash-flows from
continuing operations before financial interest and other products
& charges adjusted from one-offs8
https://www.groupe-casino.fr/wp-content/uploads/2023/07/20230727_Presentation_cleansing_vENG.pdf9
Like-for-like figures exclude CChezvous, Géant and Cdiscount Energy
for 1H2210 2022 figures have been restated to consider CChezVous
disposal (discontinued operations)11 Like-for-like figures exclude
CChezvous, Géant and Cdiscount Energy for 1H2212 Excluding
Cdiscount Energy13 Subscriber base as of June 30th, 202314 2022
figures have been restated to consider CChezVous disposal
(discontinued operations)15 Deferred Tax Assets 16 Like-for-like
figures exclude CChezvous, Géant and Cdiscount Energy for 1H2217
Excluding Energy18 E-commerce GMV is equal to direct sales GMV
combined to marketplace GMV19 Free cash-flows from continuing
operations before financial interest and other products &
charges20 Free cash-flows from continuing operations before
financial interest and other products & charges adjusted from
one-offs21 Excluding Energy
- Cnova NV_Activity & Financial Press Release_1H23
Cnova NV (EU:CNV)
과거 데이터 주식 차트
부터 11월(11) 2024 으로 12월(12) 2024
Cnova NV (EU:CNV)
과거 데이터 주식 차트
부터 12월(12) 2023 으로 12월(12) 2024
