CNOVA N.V. Third quarter 2024 Activity
CNOVA N.V.
Third Quarter 2024 activity
After two years of transformation,
GMV1 is back-to-growth
in the 3rd quarter
2024
Cnova pursues its path towards operational profitability,
with restated EBITDA after
rents2 increasing by
+€1m and positive free cash-flows of +€4m, improving by +€20m vs.
23
Casino will initiate today the buyout procedure of Cnova
N.V.’s minority shareholders |
|
-
Like-for-like1
overall GMV slightly growing in 3Q24 vs. 23. After
two years of transformation, Cnova has succeeded in initiating a
gradual recovery: -12% in 1Q24 vs. 23, -9% in 2Q24 vs. 23 and
slightly growing in 3Q24 vs. 23, in a challenging environment for
Cdiscount’s core markets such as Home and Technical Goods
- Product
GMV3 growing by +1%,
improving quarter after quarter:
- Marketplace: +8%
in 3Q24, -2% in 2Q24, -4% in 1Q24
- Direct sales:
-12% in 3Q24, -26% in 2Q24, -29% in 1Q24
- Product
GMV3: +1% in 3Q24, -11% in 2Q24, -15% in 1Q24
- Product GMV
growing by +6% with Marketplace growing by +14% in October to
date4
-
Like-for-like1
Net sales decreasing by -9% in 3Q24 vs. 23, mostly
due to focus on profitability and declining direct sales GMV in
line with the strategic turnaround towards Marketplace,
representing 67% of Product GMV in 3Q24 (+5pts vs. 23)
- Services
revenues5 amounting to
€83m in 3Q24, increasing by +3% vs. 23,
representing 34% of overall like-for-like1 net sales,
growing by +4pts vs. 23, mostly supported by B2B
revenues increasing by +47% vs. 23
- Restated
EBITDA after rents2
growing by +€1m in 3Q24 (+8% vs. 23), thanks to
Cnova’s turnaround towards high-margin services
- Positive
free-cash flows of +€4m, improving by +€20m in 3Q24 vs.
23, mostly driven by the continuous effects of the transformation,
rationalized investments and CB4X financial costs together with
enhanced working capital, thanks to a consistent and thorough
monitoring
- Cnova
continuously pursuing the development of its CSR
strategy with “More
sustainable products” representing
27% of Product GMV in the 3rd quarter 2024 (+8pts vs.
23)
- Strong
overall NPS growing by +5pts in the
3rd quarter 2024 compared to last year, driven by both
Marketplace NPS (+6pts vs. 23) and Direct sales NPS (+4pts vs.
23)
|
AMSTERDAM – October 17, 2024, 17:30 CET Cnova N.V. (Euronext
Paris: CNV; ISIN: NL0010949392) (“Cnova”) today announced its third
quarter 2024 activity.
Thomas Métivier, Cnova’s CEO,
commented:
“The growth in Q3 confirms the trajectory of our
transformation plan and the strength of our value proposal for
French consumers thanks to our growing marketplace, our refocused
direct sales and improvements on our tech platform, notably thanks
to AI.
The growth of our services revenues, notably
marketplace, advertising and B2B drives our positive and improving
EBITDA after rents and free-cash flows in the
3rd quarter confirming the positive
effect on profitability of our new business model.
With the launch of our new brand identity in June and
continuous additional commercial and marketing investments, we are
pursuing the reinforcement of our value proposition to our
customers enabling us to boost acquisition and loyalty.”
Financial highlights
Financial performance
(€m)
|
|
3Q23
|
3Q24
|
|
Change vs. 23 |
|
|
Reported |
L-f-L6 |
Overall GMV (including VAT) |
|
667 |
651 |
|
(2.5)% |
+0.0% |
E-commerce platform |
|
642 |
622 |
|
(3.1)% |
(0.6)% |
o/w Direct sales |
|
198 |
175 |
|
(11.6)% |
o/w Marketplace |
|
336 |
362 |
|
+7.8% |
Marketplace share |
|
62.9% |
67.4% |
|
+4.5pts |
o/w B2C services |
|
38 |
39 |
|
+3.1% |
o/w Other revenues |
|
72 |
47 |
|
(34.5)% |
(14.6)% |
B2B
activities |
|
25 |
29 |
|
+14.7% |
o/w Octopia B2B revenues |
|
8 |
10 |
|
+23.6% |
o/w Octopia Retail & others |
|
12 |
10 |
|
(19.7)% |
o/w C-Logistics |
|
5 |
10 |
|
+81.1% |
Net sales |
|
281 |
244 |
|
(13.1)% |
(8.6)% |
Services
revenues5 |
|
80 |
83 |
|
+3.4% |
|
|
|
|
|
|
|
EBITDA |
|
18 |
16 |
|
(14.1)% |
Restated EBITDA after
rents7 |
|
10 |
11 |
|
+7.9% |
Free cash-flows |
|
(16) |
+4 |
|
+€20m |
3rd
quarter activity
GMV |
3Q24 vs. 23 |
Total GMV
like-for-like8 evolution |
+0.0% |
Marketplace
GMV growth |
+7.8% |
Marketplace
GMV share growth |
+4.5pts |
Overall GMV slightly grew in the 3rd quarter
compared to last year on a like-for-like basis8,
gradually improving compared to 1Q24 trend (-12.4% vs. 23) and 2Q24
trend (-9.2% vs. 23), with:
-
Direct sales contributing -3.5pts (-11.6% y-o-y),
following Cnova’s strategic business model turnaround towards more
service activities, with Games & Toys and Do-It-Yourself
product categories performing well in the 3rd quarter
2024 compared to last year
-
Marketplace contributing +4.0pts (+7.8% y-o-y),
with Marketplace GMV share growing by +4.5pts, standing at 67.4% in
the 3rd quarter 2024, mainly driven by Telephony, Sport
and Home Furniture performances in the 3rd quarter 2024
compared to last year
-
B2C services contributing +0.2pt (+3.1% y-o-y),
with growing Mobile (+14.9%) and Travel (+1.2%) GMV, mainly
supported by Flights (+6.4%) and last-minute deals performance
-
Octopia Fulfilment-as-a-Service contributing
+0.1pt (+12.5% y-o-y) supported by an increasing number of shipped
parcels (+35.5% vs. 23), +181 new sellers in the 3rd
quarter 2024 and the acceleration of Octopia’s fulfilment business
in the United Kingdom
-
C-Logistics B2B contributing +0.7pt (+81.1% y-o-y)
with an increasing number of shipped parcels for external clients
(+58.9% vs. 23) and the ramp-up of its new client specialized in
luxury goods since its launch in the 1st quarter
2024
Net
sales |
3Q24 vs. 23 |
Net sales
like-for-like evolution8 |
(8.6)% |
Net sales amounted to €244m in
the 3rd quarter 2024, a -13.1% reported decrease
compared to 2023 and a -8.6% like-for-like8 decrease.
Net sales evolution has mostly been impacted by:
- Decreasing direct sales revenues,
impacted by Cnova’s voluntary business shift towards more service
activities, as illustrated by Marketplace GMV share growing by
+4.5pts vs. 23
- Partly offset by services revenues
growing by +3.4% vs. 23, with B2B revenues increasing by +46.9% vs.
23, thanks to the dynamic of logistic services, with C-Logistics
B2B (+81.1% vs. 23) and Octopia Fulfilment-as-a-Service (+12.5% vs.
23)
Services
revenues
(€m) |
|
3Q23 |
3Q24
|
|
Change
vs. 23 |
Marketplace
revenues (Commissions & Fulfilment revenues)9 |
|
48.5 |
46.1 |
|
(4.9)% |
Advertising net
revenues10 |
17.4 |
17.6 |
|
+0.8% |
B2C
revenues11 |
3.6 |
3.4 |
|
(3.1)% |
B2B revenues12 |
10.8 |
15.9 |
|
+46.9% |
Services revenues |
|
80.3 |
83.0 |
|
+3.4% |
|
|
|
|
|
|
Services revenues share in net
sales8 |
|
30.1% |
34.0% |
|
+3.9pts |
Marketplace GMV share |
|
62.9% |
67.4% |
|
+4.5pts |
Services revenues stood at €83m
in the 3rd quarter 2024, improving by
+3.4% vs. 23, representing 34.0% of
like-for-like8 net sales (+3.9pts vs. 23), with:
-
Marketplace9
generating €46m revenues in the 3rd quarter 2024, with
Marketplace GMV share standing at 67.4% (+4.5pts vs. 23, +27.6pts
vs. 19), slightly lower than 2023, with negative category mix
effects reducing Fulfilment by Cdiscount revenues by -18%, without
affecting its profitability
- Advertising
services10
net revenues reaching €18m in the 3rd quarter 2024,
slightly increasing by +1% vs. 23, supported by Cdiscount Ads
Retail Solution (CARS) platform success, as illustrated by
sponsored products growing by +10% vs. 23, representing 78% of
Advertising net revenues in 3Q24 (+6.6pts vs. 23)
- B2B
services12
revenues increasing by +46.9% vs. 23, standing at €16m in the
3rd quarter 2024, mainly driven by the dynamic of
logistic services, as illustrated by the growing number of parcels
shipped by C-Logistics B2B (+58.9% vs. 23) and Octopia
Fulfilment-as-a-Service (+35.5% % vs. 23)
3rd quarter
highlights
In the 3rd quarter 2024, Cnova
continued to enhance its customer-centric
approach, with dedicated investments aiming at
strengthening customer acquisition and loyalty, as illustrated
by:
- The strong overall
NPS standing at 56.6pts in 3Q24 (+5.2pts vs. 23), driven by both
Marketplace NPS (+5.5pts vs. 23) and Direct sales NPS (+4.2pts vs.
23)
- Growing client
acquisition by +4.4% in 3Q24 vs. 23, with the launch of Cdiscount’s
new brand identity and market momentums such as Summer sales, the
Back-to-School period and French Days
- An increasing share
of reactivated customers by +2.9pts in 3Q24 vs. 23
Cnova continues its Generative
Artificial Intelligence (“GenAI”) initiatives to enhance its
customer-centric approach
Artificial intelligence-powered algorithms were
implemented all along the customer journey, enabling to improve the
relevance of the Cdiscount.com search engine (+3.8pts in search
engine click rate vs. 23).
Aiming to generate more value, enrich customer
experience and improve internal efficiency and processes, Cnova has
internally developed and deployed several GenAI use cases since May
2023:
- Product features enrichment: to
date, c. 9 million products with features improved by GenAI
- Product reclassification: to date,
c. 29 million products reclassified and increase by c. 30% in
conversion for products reclassified through GenAI
- Product headlines and descriptives
improvement: to date, c. 13 million products processed by GenAI
Cnova pursues the development of its CSR
strategy
Cnova is committed to promoting a more
sustainable consumption, both to reduce the carbon footprint of the
products sold by Cnova and to support the local economy.
Through Cdiscount.com, Cnova aims to give
consumers the power to choose and act. With this objective, two new
criteria have been added to the “More sustainable”
program: “Made-to-order” for home furnitures and
“Refurbished in France” for high-tech products, with two
new “More sustainable” labels added to the website to help
customers easily identify these products. Thanks to these efforts
to develop the offer, highlight products on the website and promote
sales, the share of “more sustainable” products reached a
new record in the 3rd quarter 2024, representing 27% of
Product GMV.
Cnova is also pursuing its commitment in favor
of more sustainable logistics through its subsidiary
C-Logistics. In its operations, C-Logistics continues to work with
carriers to reduce the greenhouse gaz emissions related to the
parcels delivery. Hence, the share of deliveries with alternative
means of transportation for the last kilometers on light parcels
increased by 20% vs. 23 and by 62% on heavy parcels.
In addition, C-Logistics took part in a working
group led by La Poste aiming at implementing the AFNOR SPEC
“E-commerce: information to consumers on the environmental
impact of their delivery choice” published in June
2024.
***
About Cnova N.V.
Cnova N.V., the French ecommerce leader,
serves 7.0 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 and entertainment
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.com
Tel : +33 6 79 74 30 94 |
Media contact:
directiondelacommunication@cdiscount.com
Tel: +33 6 18 33 17 86
cdiscount@vae-solis.com
Tel: +33 6 17 76 79 71 |
***
1 Like-for-like figures exclude Carya
and Neosys (disposed) along with Géant and Cdiscount Pro
(discontinued)
2 EBITDA after rents restated from Carya's 2023 figures
(activity disposed in December 2023)
3 Shipped Direct sales and Marketplace GMV including
VAT
4 Evolution of placed GMV excluding VAT as of October
16th, 2024, compared to the same period last year
(before cancellation due to fraud detection and/or customer
non-payment)
5 Including Marketplace commissions, subscription fees
and other revenues, Advertising services, Fulfilment by Cdiscount,
warranties extension, CUP cards commissions, B2C services, Octopia
B2B (Fulfilment-as-a-Service, Merchants-as-a-Service and
Marketplace-as-a-Service) and C-Logistics B2B
6 Like-for-like figures exclude Carya and Neosys
(disposed) along with Géant and Cdiscount Pro (discontinued)
7 EBITDA after rents restated from Carya's 2023 figures
(activity disposed in December 2023)
8 Like-for-like figures exclude Carya and Neosys
(disposed) along with Géant and Cdiscount Pro (discontinued)
9 Including Marketplace commissions after price
discounts, subscription fee and revenues from fulfilment services
to sellers
10 Including both revenues from marketing services to
suppliers and sellers
11 Including Travel, Mobile, CUP cards commissions,
warranty services and others
12 Including Fulfilment-as-a-Service,
Merchants-as-a-Service and Marketplace-as-a-Service (Octopia) and
C-Logistics B2B activities
- Cnova NV_Activity Press release_3Q24
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