CNOVA N.V. First Quarter 2017 Activity
13 April 2017 - 3:40PM
CNOVA
N.V.
First Quarter 2017 Activity
Amsterdam - April 13, 2017, 07:45
CEST - Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392)
("Cnova" or the "Company") today announced unaudited gross
merchandise value (GMV), net sales and other operating data for the
quarter ended March 31, 2017.
-
Gross merchandise volume
(GMV): €770 million (+8% like-for-like[1])
-
Including an impact of -2.0 pts from TV category
(shift to DTT[2] in
2016)
-
Marketplace share at 32.0% (+267 bp)
-
+10% of GMV growth over the last eight
weeks[3]
-
Net sales: €472 million (+4%
like-for-like)
-
Strong traffic growth: 234
million visits (+11%)
-
Cdiscount ranks 2nd best among
French retailers in number of social networks'
interactions[5]
-
Active customers: 8.3 million
(+10%)
-
Number of items sold: 12.5
million (+12%)
Emmanuel Grenier, Cnova CEO, commented:
"Cdiscount's
volume of activity has been and continues to run at a double-digit
rate over the last two months after a disappointing start to the
year. Our customer loyalty program, Cdiscount à volonté, continues
to double in size and is driving growth of repeat business. The
quality of our marketplace vendors has steadily increased and is
accompanied by an improving profitability profile. While the
mobile share of traffic closes in on 60%, we are seeing
double-digit growth in traffic, orders and number of active
customers. And our high margin home furnishings and appliances
product categories now account for half of net sales.
Looking forward,
we have our eyes firmly fixed on increasing the flow of traffic to
our site and further monetizing that flow through the offering of
expanded product categories with existing and new services. Beyond
our multi-media, mobile telephone and cloud storage offers, we are
planning on introducing a variety of home and financial services in
the 2nd quarter. We
have expanded the total floor space we currently have in France and
expect to continue to do so in order to: one, increase inventory
diversity and size; two, better accommodate the success of our
marketplace fulfillment offer; and three, continue to bring our
products closer to our clients in our pursuit of 24/7 overnight
delivery.
In a highly
competitive French market, Cdiscount's longstanding leading
positions in terms of pricing, customer financing and quick
delivery are proving to be key competitive advantages that continue
to attract new customers."
[1] Like-for-like: includes
adjustments related to i) the sale or closure in 2016 of the
specialty sites Comptoir des Parfums, Comptoir Santé and
MonCornerDéco, ii) the voluntary pullback of B2B sales initiated in
the 3rd quarter
of 2016 and iii) the additional day (February 29) in 2016.
[2] DTT:
Digital Terrestrial Television, known as TNT in France.
[3] Commercial
trend over the last eight weeks up to April 11, based on placed B2C
GMV.
[4] Average
unique monthly visitors on desktop site in January and February
2017, based on Médiamétrie studies.
[5] According
to Sprinklr survey published in February 2017, based on the number
of like, share and comments on social networks
1st Quarter 2017
Highlights
Gross merchandise
volume (GMV) totaled €770 million, an increase of 7.7% versus
2016 on a like-for-like (l-f-l) basis (please see Footnote 1 page
1). On a reported basis, GMV rose 5.2% compared to 2016. After a
slow start in January, order volume progressed throughout the
quarter, reaching a run rate of +12% in March. This trend has
continued in early April with a placed B2C merchandise volume
growth of 10% over the last eight weeks to April 11.
Excluding TV products, which
benefited from the mandatory shift to Digital Terrestrial
Television (DTT or TNT) in the 1st quarter
2016, GMV increased by 9.7% on a yearly basis.
This progression is explained
by:
-
Growing traffic: increase
of 11.4% year-on-year (y-o-y), driven by a growing mobile share: +633 basis points to 57% in the quarter.
Mobile visits rose by 25%, and the mobile conversion rate increased
by more than 20 basis points on a yearly basis. Average unique
monthly desktop visitors increased by 8.0% y-o-y in January and
February 2017 up to 12.2 million, making Cdiscount.com the most
dynamic website among the five main e-retailers in France,
according to Médiamétrie. This enables Cdiscount to consolidate its
#2 position in unique monthly visitors. This same metric for mobile
unique monthly visitors stands at 6.5 million over the same
period;
-
Solid increase in orders
and number of items sold: y-o-y increases of
13.6% and 11.7%, respectively;
-
Expanding marketplace share
of total GMV: increase to 32.0% (+267 basis points y-o-y) due to:
i) good performance of home, personal goods such as toys and video
games, and hi-tech categories, ii) increase in the number of
marketplace product offerings by 38% y-o-y, iii) continuous
improvement in the quality of marketplace vendors in terms of
customer service levels, aided by the development of Cdiscount
fulfillment services to vendors - the share of marketplace GMV
fulfilled by Cdiscount rose from 5% in March 2016 to 10% in March
2017;
-
Growing number of active
customers: y-o-y increase of 10.4% to 8.3 million at the end of
the quarter. Membership of Cdiscount à volonté
(CDAV), Cdiscount's loyalty program whose members purchase at a
higher frequency than non-CDAV customers, increased by 116%
compared to March 2016.
Cdiscount has continued to
strongly develop its presence on social
networks. Its "fan base" on Facebook has
significantly increased between end March 2016 and end March 2017,
from 1.2 million to 1.4 million members. According to Sprinklr
(survey published in February 2017), Cdiscount ranks second among
62 French retail players in terms of number of interactions on
social networks (like, share, comment).
Net sales
totaled €472 million in the 1st quarter
2017, up 4.0% on a l-f-l basis compared to the same period in 2016
(+1.4% on a reported basis). Home furnishings and household
appliances accounted for 50% of direct sales, while hi-tech items
(AV and smartphones) and IT goods represented 36% of direct sales.
Marketplace commissions increased by 23% y-o-y.
Customer and
Marketplace offer and service enhancements during the
1st quarter 2017
centered on improvement of existing and development of new services
and growth of assortment, including:
-
The opening of a new 12,000 sqm distribution
center in the middle of France (Orléans) with a planned
2nd quarter 2017
expansion to at least 40,000 sqm,
-
Further upgrade of logistics enhancements: new
warehouse management IT system (Manhattan) allows for shortened
delivery times and increased order processing capacity,
-
Launch of inventory expansion program and
accompanying state-of-the-art logistics network, focusing on home
furnishing and interior, appliances, gardening and tools product
categories, to meet growing client demand,
-
Ramp-up of improved marketplace quality with
increased profitability:
-
Marketplace vendors meeting higher quality
standards put in place in 2016,
-
Launch of premium marketplace offer
(advantageous visibility, access to additional consumer financing
options, data analysis, etc.),
-
New marketplace vendor services under
development to further enhance profitability: access to new
financial services, enhanced fulfillment packages, etc.
-
Planned 2nd quarter
launch of new home and financial services.
First Quarter 2017
Activity
Cnova N.V. |
First
Quarter(1) |
Change |
2017 |
2016 |
Reported(1) |
L-F-L(2) |
GMV(3)
(€ millions) |
770.4 |
732.4 |
+5.2% |
+7.7% |
Marketplace
share |
32.0% |
29.3% |
+267 bp |
|
Net sales (€ millions) |
472.0 |
465.3 |
+1.4% |
+4.0% |
Traffic (visits in
millions) |
233.8 |
209.9 |
+11.4% |
|
Mobile
share |
56.9% |
50.6% |
+633 bp |
|
Active customers(4)
(millions) |
8.3 |
7.5 |
+10.4% |
|
Number of items sold (millions) |
12.5 |
11.2 |
+11.7% |
|
Orders(5)
(millions) |
6.5 |
5.7 |
+13.6% |
|
-
All figures are unaudited and
have been adjusted as of January 1, 2015, to reflect i) the merger
of Cnova Brazil into Via Varejo on October 31, 2016, ii) the sale
or closure of Cdiscount's international sites, and iii) the sale of
the specialty site MonShowroom. These activities are reported as
discontinued.
-
Like-for-like: includes
adjustments related to i) the sale or closure in 2016 of the
specialty sites Comptoir des Parfums, Comptoir Santé and
MonCornerDéco, ii) the voluntary pullback of B2B sales initiated in
the 3rd quarter of
2016 and iii) the additional day (February 29) in 2016.
-
Gross Merchandise Volume (GMV)
is defined as product sales + other revenues + marketplace business
volumes (calculated based on approved and sent orders) including
taxes.
-
Active customers at the end of
March having purchased at least once through cdiscount.com during
the previous 12 months.
-
Total placed orders before
cancellation due to fraud detection and/or customer
non-payment.
***
About Cnova
N.V.
Cnova N.V., one of the leading
e-Commerce companies in France, serves 8.3 million active customers
via its state-of-the-art website, Cdiscount. Cnova N.V.'s product
offering of more than 22 million items provides its clients with a
wide variety of very competitively priced goods, several fast and
customer-convenient delivery options as well as practical payment
solutions. 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@cnova.com
Tel: +31 20 795 06 71 |
Media contact:
directiondelacommunication@cnovagroup.com
Tel: +31 20 795 06 76 |
PR Sales release 1Q17
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information contained therein.
Source: Cnova N.V. via Globenewswire
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