CNOVA N.V. 2022 Fourth Quarter Activity & Full Year Financial Results
22/02/2023 06:44
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CNOVA N.V.
Full Year 2022 results & 4(th) quarter activity
Swift start in 2022 of Cnova’s transformation
With strong platform revenues , Cnova reinforces its shift to wards a profitable model: * S harp increase in gross margin at 23.2% of net sales (+1.3pt vs. 21, +5.4pts vs. 19) notably thanks to the GMV mix improvement towards marketplace : 54% of marketplace share in Q4 (+9pts vs 21), 52% in FY (+6pts vs. 21, +13pts vs. 19)
* Marketplace revenues at €191m , (-2% vs. 21) growing +28% vs. 19 with solid and regular increase of GMV take rate (1)at 16.2% (+0.7pt vs. 21, +1.7pt vs. 19)
* Advertising services revenues growing at €71m (+5% vs. 21, x1.8 vs. 19), with consistent increase in GMV take rate (1)over the last years reaching 3.1% (+0.7pt vs. 21, +1.6pt vs. 19)
* B2B expansion on-track: Octopia B2B revenues reaching €19m (+66% vs 21) with 14 new clients in 2022 for its turnkey marketplace solution to reach 26 clients at year-end
Efficiency plan to recalibrate SG&A and CAPEX: €47m savings vs. 21 (+€17m vs. guidance): * SG&A (excl. D&A) decreasing from €371m to €342m ( -€29m )
* CAPEX decreasing from €98m to €80m ( -€18m )
The accelerated shift to the marketplace model and the success of the E fficiency P lan help secure positive free cash flow before financial interests of +€15m and a FY 22 EBITDA of €52m. Appointment of Thomas M é tivier as CEO to pursue the Group’s transformation .
AMSTERDAM - February 22, 2023, 7:45 CET Cnova N.V. (Euronext Paris: CNV; ISIN:
NL0010949392) (“Cnova”) today announced its fourth quarter 2022 activity
and full-year unaudited financial results for 2022.
During 2022, Cnova’s first priority was the continuous development of its
marketplace and advertising services in a persistent context of macro-economic
uncertainties and disruptions, while recalibrating its cost structure to
preserve cash and improve profitability. 2022 also confirmed the relevant
positioning of its B2B business model with the commercial acceleration of
Octopia and C-logistics.
This mix evolution towards more platform revenues has driven Cnova’s gross
margin up by more than 5pts over the last 3 years to 23.2% of net sales.
Marketplace GMV, after reaching more than 50% of product GMV for the first
time in the 2(nd) quarter of 2022, continues on its positive trend and now
represents 54% of GMV in the 4(th) quarter (+9pts vs. last year) with a nearly
stable GMV (-2%) in a receding French ecommerce market. In January and
February 2023, marketplace continues to be dynamic with record high GMV shares
of more than 60% for several days. Over the last 5 years, marketplace has been
growing at an annual rate of +7% supporting Cnova’s first strategic pillar
with a GMV share increasing by +18pts up to 52%.
This marketplace development has been supported by a sharp increase in
customer satisfaction measured by the NPS which grew by +3pts compared to 2021
and +14 pts compared to 2019, narrowing the gap with the direct sales customer
satisfaction by 4pts since 2019. The primary lever of this improvement has
been the constant enhancement in marketplace delivery services: Fulfilment by
Cdiscount and Cdiscount Express Seller orders now cover more than half of
marketplace GMV (+20 pts between 2019 and 2022).
Advertising services revenues reached €71m in the Full Year 2022, growing
+5% compared to 2021 supported by the traction of our proprietary advertising
bidding platform which grew by +29% yoy now representing two thirds of
advertising services revenues.
Overall GMV decreased by -15% in the Full Year 2022 on a comparable basis
impacted by the direct sales rationalization (-27%) to focus on products
generating more profit and cash. As part of this voluntary strategic move,
direct sales inventories nearly halved at end 2022 compared to last year end
(+€112m positive impact on working capital).
Long-term value creation through B2B activities development: Octopia signed 14
new clients in 2022 to reach a total of 26 clients at year-end of 2022 out of
which 17 clients are already live on the platform. C-logistics signed 3 new
clients in 2022 to reach 4 clients at year-end for its end-to-end third-party
logistic solution and has already successfully launched 3 of them.
In Q2 2022, Cnova launched an Efficiency Plan to swiftly recalibrate its cost
structure & capex level to the current volume of activity with a €75m
savings target on a full-year basis by the end of 2023.
This efficiency plan already generated €47m of savings of OPEX and CAPEX in
2022 compared to 2021, overperforming the July 28, 2022 savings guidance by
+€17m.
Thanks to those initiatives, Cnova was able to protect profitability and cash
with an EBITDA of €52m and a positive free cash flow before financial
interests of +€15m for the Full Year 2022, an improvement of +€94m
compared to last year.
Thomas Métivier, Cnova's CEO, commented:
“In 2022, Cnova proved its ability to quicky adapt to macro-economic
disruptions by focusing on our marketplace and advertising services while
reducing our cost structure with decisions taken as early as Q1. In 2023, we
will accelerate the pace of this transformation, focusing on strengthening our
profitability, growing our marketplace while leveraging on advertising
services and on the commercial success of Octopia and C-Logistics’
solutions. All those actions will pave the way for more growth potential and
margin expansion in the coming years.”
Financial highlights
Financial performance (€ millions , GMV figures incl. VAT) 2022 Full year 2021 Full year Change vs. 2021
Reported L-f-L (2)
Total GMV 3 , 497.1 4 , 205.5 ( 16.8 ) % ( 14.5 ) %
Ecommerce platform 3 , 395.9 4 , 095.3 ( 17.1 ) % ( 1 4.7 ) %
o/w Direct sales 1,340.0 1,840.0 (27.2)%
o/w Marketplace 1,421.0 1,517.6 (6.4)%
Marketplace share 51.5 % 4 5.2 % + 6.3 pts
o/w Services 212.1 277.8 (23.7)% +43.1%
o/w Other Revenues 422.9 459.8 (8.0)% +1.1%
B2B activities 101.1 110.2 ( 8.2 ) %
o/w Octopia B2B revenues 22.6 13.6 +66.4%
o/w Octopia Retail & Others 74.3 96.1 (22.7)%
o/w C-Logistics 4.3 0.5 x8.2
Total Net sales 1 , 700. 2 2 , 162 . 5 ( 21. 4 ) % ( 20. 7 ) %
EBITDA (3) 52.0 102.7 ( 49.4 ) %
% of Net sales 3.1 % 4. 7 % ( 1.7 ) pts
% of GMV 1.5 % 2.4 % ( 1. 0 ) pts
Free cash flow figures (€ millions) Full Year 2022 Full Year 2021 Change vs. 2021
EBITDA (3) 52.0 102.7 (50.7)
(-) cash non-recurring items (11.8) (8.8) (3.0)
(-) IFRS 16 rents (35.8) (34.7) (1.1)
(+/-) Change in working capital +14.6 (41.6) +56.2
(-) Income taxes (2.5) (3.6) +1.1
Cash from continuing operations, incl. rents 16.5 13.9 +2.6
(-) Net CAPEX (80.3) (92.9) +12.6
(+) Floa & CCV disposals cash in +79.2 - +79.2
FCF continuing operations before cash from financing activities 15.4 (79.0) + 94.4
(Net Financial Debt)/Net Cash (372.5) (326.5) (46.1)
Full year 2022 operational highlights
Operational highlights of the Full Year 2022 confirm the successful shift
towards Cnova’s marketplace platform observed since the start of the year
with a GMV share increasing by +6.3pts compared to 2021, a sharp acceleration
compared to the historical average and dynamic advertising services.
Key business KPIs 2022 Full year 2021 Full year Change vs. 2021
Marketplace GMV share 51.5% 45.2% +6.3pt
Marketplace revenues (€m) 191.4 195.8 (2.2)%
Advertising services (€m) 71.3 67.6 +5.4%
Focus on 4(th) quarter operational highlights
GMV 4 Q22 vs. 21
Total like-for-like GMV growth (16.0)%
Net sales like-for-like growth (24.0)%
Marketplace GMV growth (2.1)%
Travel GMV growth +18.5%
Facing strong inflation headwinds and a changing macro-economic environment,
Cnova overall GMV decreased by -16.0% on a comparable basis:
* Product GMV (Direct sales and marketplace) decreasing by -18.5%, -32.0% for
direct sales and -2.1% for the marketplace, confirming the objective of Cnova
to improve its GMV mix and profitability towards more marketplace, with an
increasing marketplace GMV share of +9.1pts in the 4(th) quarter;
* Advertising services slightly decreased in the 4(th) quarter, showing a
solid dynamic when compared to GMV trend with record-high monetization per
viewed pages during Black Friday;
* B2C Services showed promising dynamics, especially thanks to a fast-growing
activity for Cdiscount Travel which achieved the best year since its launch in
2018 with a growth of +46.1% compared to 2021 and +18.5% in the 4(th) quarter;
* Octopia was very dynamic and signed 2 clients in the 4(th) quarter for its
marketplace-as-a-Service solution including a major French retailer with more
than €200m online GMV in 2022 while Fulfillment-as-a-Service grew by +48.4%
in the 4(th) quarter.
Cdiscount à Volonté (“CDAV”), Cdiscount’s loyalty program, still
encompasses 2.5 million members with a slightly decreasing GMV share of 41.8%
during the 4(th) quarter 2022, benefiting from 2.3 million SKUs available for
express delivery, with a Fulfilment by Cdiscount assortment increasing by +16%
compared to last year.
Clients in m at end 22
Total clients (4) 8.8
CDAV subscriber base (4) 2.5
The number of visitors is decreasing by -5.5% during the fourth quarter 2022,
with a total of 274.6m visitors during the period, a dynamic aligned with
market trend.
With more than 80% of the traffic coming from mobile, Cdiscount.com mitigated
market headwinds and maintained its strong #2 position in France according to
Médiamétrie(5) in the 4(th) quarter with an improving trend in the 4(th)
when compared to the 3(rd) quarter.
Cnova’s strategic shift towards the marketplace is accelerating, exceeding
the 50% GMV share landmark in a sole quarter – an increase of +9.1 points
compared to 2021. Raised quality standards, with NPS up 0.2pts y-o-y to 50 in
the 4(th) quarter, led to this fast-increasing marketplace GMV share this
quarter. As part of this strategy, Fulfilment by Cdiscount and Express seller
program continued to be very dynamic now representing more than 50% of
marketplace GMV in the 4(th) quarter.
4Q22 vs. 4Q21
Marketplace GMV share 54 .1 % +9 .1 pts
Cdiscount express seller MKP GMV share 15.1% +6.5pts
Fulfilment by Cdiscount MKP GMV share 36.5% (4.0)pts
Total marketplace GMV share eligible to express delivery 51.6 % + 2 .5 pts
Full year financial performance
Cnova N.V. (€ millions) Full Year Change
2022 2021 vs. 2021
GMV 3,497.1 4,205.5 ( 16.8)%
Total Net sales 1,700.2 2,162.5 ( 21.4)%
As a % of GMV 48.6% 51.4% ( 2.8)pt
Gross margin 393.8 473.6 ( 16.9)%
As a % of Net sales 23.2% 21.9% +1.3pts
As a % of GMV 11.3% 11.3% -
SG&A (excl. D&A) (341.8) (371.0) (7.9)%
As a % of Net sales ( 20.1)% ( 17.2)% ( 2.9)pts
As a % of GMV ( 9.8)% ( 8.8)% ( 1.0)pt
EBITDA 52.0 102.7 (49.4)
As a % of Net sales 3.1% 4.7% ( 1.7)pts
As a % of GMV 1.5% 2.4% ( 1.0)pt
Operating EBIT (45.8) 13.1 (58.9)
Net financial income / (expense) (72.5) (52.8) (37.3)%
Net profit / (loss) from cont. operations (128.0) (51.3) ( 149.5)%
Net sales amounted to €1,700.2m for the Full Year 2022, a -21.4% decrease
compared to 2021. Net sales evolution has been impacted by the improvement of
product mix towards the marketplace, whose revenues are just recognized for
the amount of associated commissions, with a GMV share increasing by +6.1pts
in a year. This product mix improvement has been accelerating in Q4 with GMV
marketplace share increasing by +9.1pts.
Gross margin was €393.8m for the Full Year 2022, decreasing by -16.9%
compared to 2021 but representing 23.2% of net sales, which represents an
improvement compared to 2021 of +1.3pts. Cnova accelerated its shift towards
the marketplace: marketplace and Cdiscount advertising together brought more
than +2.5pts in gross margin. This increase more than compensated one-off
negative impact from destocking initiatives (-0.6pts on gross margin) that
contributed to a +€112m positive impact on working capital related to
inventory reduction.
SG&A costs excluding depreciation and amortization amounted to €(341.8)m for
the Full Year 2022, decreasing by €29.1m thanks to the implementation in
early Q2 of an efficiency plan to recalibrate cost structure to current level
of activity. This efficiency plan including SG&A and CAPEX savings
outperformed the €30m July 28, 2022 guidance by €17m in 2022. Fulfillment
costs, at 7.1% of net sales (-0.6 pt vs. 2021), decreasing by €19.1m in
value as a result of (i) lower volumes, (ii) efficiency plan on square meter
optimization (iii) productivity enhancement and (iv) renegotiations that
together offset high inflation headwinds. Marketing costs represented 4.9% of
net sales (-0.3 pt vs. 2021), decreasing by €17.7m in value. Cdiscount
maintained its acquisition marketing spend proportionally to a lower GMV and
benefited from the implementation of the savings plan. Technology & Content
costs increased at 3.7% of net sales (+1.7 pts vs. 2021) related to the
continuous investment in Octopia’s product and commercial development partly
offset by the savings plan that was achieved gradually throughout the second
half of the year. General & Administrative represented 2.4% of net sales (-0.3
pt vs. 2021), decreasing by €4.0m in value. Most of the savings incurred in
this cost line were concentrated on central costs with a full-year impact
expected in 2023.
As a result, FY 2022 EBITDA decreased to +€52.0m representing 3.1% of net
sales (-1.7 pts vs. 2021). In a context of significant market headwinds,
EBITDA benefited from a resilient marketplace performance and increased
revenues from advertising services while heavy destocking initiatives
negatively weighted on Direct Sales gross margin. This negative impact on
gross margin was partly offset by the positive +€29m impact of the
efficiency plan at OPEX level.
Operating EBIT decreased to €(45.8)m representing -2.7% of net sales (-3.3
pts vs. 2021), with depreciation and amortization increasing by €8.1m y-o-y
due to growing investment over the past years in new B2B activities especially
Octopia’s product developments.
Other non-recurring income / (expenses) amounted to €(4.6)m. Costs related
to the efficiency plan and assets impairment was mainly compensated by a
positive gain on Floa assets disposal for €14.0m.
Net financial expenses – mainly related to 4-installment payment solutions
offered to customers – amounted to €(72.5)m representing -4.3% of net
sales (-1.8 pt vs. 2021) an increase of €(19.7)m compared to last year:
* 4-installment payment cost of risk was temporarily negatively impacted in
2022 by higher take rate in H2 2021 and H1 2022 together with higher interest
rates for c. €(14)m
* Long Term loan with the Casino Group increasing from €150m up to €300m
for c. €(5)m
Net loss from continuing operations amounted to €(128.0)m, representing
-7.5% of net sales (-5.1 pts vs. 2021).
Free cash flow figures (€ millions) Full Year 2022 Full Year 2021 Change vs. 2021
EBITDA (3) 52.0 102.7 (50.7)
(-) cash non-recurring items (11.8) (8.8) (3.0)
(-) IFRS 16 rents (35.8) (34.7) (1.1)
(+/-) Change in working capital +14.6 (41.6) +56.2
(-) Income taxes (2.5) (3.6) +1.1
Cash from continuing operations, incl. rents 16.5 13.9 +2.6
(-) Net CAPEX (80.3) (92.9) +12.6
(+) Floa & CCV disposals cash in +79.2 - +79.2
FCF continuing operations before cash from financing activities 15.4 (79.0) + 94.4
(Net Financial Debt)/Net Cash (372.5) (326.5) (46.1)
Free cash flow from continuing operations before financial expenses amounted
to €15.4m during the Full Year 2022, i.e. a +€94.4m increase compared to
the Full Year 2021 in a difficult market context where Cnova focused on
preserving cash and profitability:
* Cash from continuing operations, including cash rents, was up by +€2.6m to
€16.5m: EBITDA decrease was compensated by working capital improvement. An
Efficiency Plan was launched in early 2Q22 and resulted in a positive free
cash flow before financial expenses and more positive effects expected in
2023.
* A positive change in working capital of +€14.6m presenting a significant
improvement compared to last year of +€56.2m thanks to: * Positive impact
from inventories and receivables for +€225m * Decrease in inventories by
€(157)m thanks to (i) the efficiency plan for €(112)m : 1P offer
rationalization to focus on high turnover products and highest margins
categories and (ii) sale of €45m Géant inventories in May and June 2022 to
Casino Group
* Decrease in receivables by €(68)m thanks to (i) lower level of direct
sales activity that favorably impacted the volume of B2B trade & advertising
invoicing to suppliers (ii) dedicated task force to reduce the level of
outstanding invoices and (iii) higher level of receivables mobilization
* Partly Compensated by the decrease in trade payables by €(195)m in line
with the -27% decrease in direct sales that resulted from the voluntary shift
towards the marketplace and reduced exposure to loss-making direct sales
categories
* Net capital expenditures decreased by €(13)m over the Full Year 2022 as a
result of the rationalization of investments to adapt to current level of
activity. Savings on gross capital expenditures amounted to €(18)m to bring
2022 total savings plan to €47m in OPEX and CAPEX vs. 2021, a €17m
overperformance vs. July 28, 2022 guidance.
* Additional positive one-off impact from disposal of non-strategic assets: *
+€21m disposal of Floa assets to BNP Paribas: €37m total positive impact
on Net Financial Debt considering c. €17m deferred revenues positive impact
on non-trade working capital
* +€58m disposal of CChezVous to Geopost: €64m with 95% cash-in in 2022
net of closing adjustments
Key Business Achievements
Marketplace growing at a CAGR of +7.4% over the past five years, driving up
revenues and profitability
* The marketplace gained +6.3 points of GMV share in the Full Year 2022
compared to 2021 to reach 51.5%
* Marketplace revenues amounted to €191.4m in the Full Year 2022 decreasing
by a resilient 2.2% compared to 2021.
* Expansion of express delivery share: * Fulfilment by Cdiscount is increasing
slightly, with a +0.3 points increase in marketplace GMV share in the Full
Year 2022 to reach 37.4% on average;
* Cdiscount Express Seller, launched in 2019 for sellers able to offer express
delivery to Cdiscount à Volonté customers. This program now covers, in the
Full Year 2022, 13.9% of marketplace GMV, a +7.7 points increase compared to
last year;
* Together, express delivered SKUs covers in the Full-Year 2022 51.3% of
marketplace GMV, a +8.0 points increase compared to last year.
Direct sales performance of technical goods categories benefited from
strengthened relations with top 20 national brands, enhanced cash profile but
were mainly impacted by high comparison base and adverse market conditions:
* Top 20 brands posted strong performance: +8pts GMV direct sales trend vs.
other direct sales (+3pts share overall) driven by Super Brand days, exclusive
offers and co-financed promotions & co-branding;
* Improved direct sales assortment and cash profile: number of SKUs divided by
2 (30k) with enhanced inventory turnover (<60 days at year-end);
* Strong comparison base with physical stores closed during the 3(rd) lockdown
in the 1(st) half of 2021 and 2022 performance impacted by high inflation of
purchases (semi-conductor shortage, increase in raw materials, supply chain
disruptions).
B2C Services showed solid performance driven by market recovery and offer
expansion
* B2C Services GMV, excluding Energy, amounted to €127.4m in the full-year
2022, up +43.1% vs. last year.
* Cdiscount Voyages (travel) experienced a significant growth, posting a
strong +46.1% GMV growth vs. 2021.
* Cdiscount Mobile (cell phone plans) experienced a significant acceleration,
posting a strong +56.4% GMV growth vs. 2021 with a positive evolution of
customer base with more than 215 k clients representing a growth of 43%.
Enhanced customer experience and record high NPS
* Increase of +1.4 points in NPS average during the Full Year 2022 (+7.1
points over 2 years) leading to a record high NPS compared to the last three
years, through intensified efforts to improve customer experience before,
during and after the sale.
* Despite a decrease in direct sales GMV presenting higher historical NPS,
overall NPS was favourably impacted by a sharp increase in marketplace
customer satisfaction which grew by +2.7 pts compared to 2021 and +13.7 pts
compared to 2019, narrowing the gap with the direct sales customer
satisfaction by 3.9pts since 2019. The primary lever of this improvement has
been the constant enhancement in marketplace delivery services: Fulfilment by
Cdiscount and Cdiscount express seller orders now cover more than half of
marketplace GMV (+20 pts between 2019 and 2022).
* Artificial intelligence-powered algorithms were implemented all along the
customer journey in the past twelve months, significantly enhancing the
relevance of the Cdiscount.com search engine (+5 pts in the search engine
click rate compared to 2021) and optimizing the pricing proposed to the
clients (more than 1m SKUs crawled, x2 vs. 2021)
Dynamic advertising services powered by Cdiscount Ads Retail Solution
* Revenues from advertising services increased by +5.4% in the Full Year 2022
compared to last year, reinforcing Cnova’s most profitable activity.
* It was supported by Cnova’s proprietary solution launched in the 1(st)
quarter 2020, Cdiscount Ads Retail Solution (CARS)(6), a 100% self-care
advertising platform enabling both sellers and suppliers to promote their
products and brands. Revenues generated by this platform grew by +29% in the
full year 2022.
* x2 number of active users in 2 years to reach 7k
* Better bidding algorithms powered by artificial intelligence: +50% increase
in click rate in 2 years * Record high investment rate during Black Friday:
19€ per 1,000 viewed pages
Octopia is growing, establishing itself as a turnkey marketplace solution for
EMEA retailers and e-merchants
* Cnova’s turnkey marketplace solution offers 3 modular and ready-to-operate
marketplace services to international retailers and e-merchants with a +66.4%
increase in the full year 2022 to €18.8m net revenues: *
Merchants-as-a-Service to bring sellers to existing marketplaces and
Marketplace-as-a-service to transform e-commerce websites into marketplaces
benefits from a strong commercial acceleration with 14 contracts signed during
the full year 2022 to reach 26 clients at year-end. Revenues in commissions &
set-up fees were multiplied by 6.3 in 2022;
* Fulfilment-as-a-Service to bring multi-marketplace fulfilment solutions
including cross-border shipping and warehouse management solution had a
successful year as it grew its revenues by +40.2% during the Full Year 2022.
* Products-as-a-Service to bring products to small/medium websites and
marketplaces in Europe decreased by -25% in the full-year 2022 related to a
focus on profitability in a context of high inflation and European ecommerce
slowdown.
C-Logistics aims to adapt its structure, to develop its B2B activity and
support the marketplace fulfilment solution ramp-up
* C-logistics initiated in 2022 a significant optimization of its warehousing
capacity with a decrease of 29k sqm in December 2022 compared to last year.
* Productivity improvement increasing by 7% for light parcels together with
significant savings in operational expenses and enhanced capacity to deliver
other European countries thanks to partnerships with Geopost for express
delivery and BPost for standard delivery.
* B2B activities development: 3 majors clients signed in 2022 (Les Raffineurs,
Boardriders and a luxury global leader). C-logistics’ B2B supply ecommerce
operations benefit from a competitive offer: high B2C service quality,
competitive transportation pricing, differentiating CSR standards and
personalized packaging.
* C-Logistics reinforced its industrial partnership with Group La
Poste/GeoPost through the acquisition by GeoPost of a majority stake in
CChezVous, C-Logistics' subsidiary dedicated to the transportation of bulky
products, for a consideration of 64 million euros, of which 95% was cashed-in
in 2022 net of closing adjustments. Both parties agreed to extend their
collaboration to deliver small parcels throughout Europe, enabling C-logistics
to accelerate its international expansion, reinforcing Cnova’s B2B strategic
pillar.
Corporate Social Responsibility
Cnova maintained its CSR strategy to promote access to products and services
to as many people as possible, while building a sustainable and inclusive
European digital economy, addressing major ecommerce stakes.
To reduce the environmental impact of Cnova offering, Cnova accelerated its
actions towards a more sustainable consumption:
* “More sustainable” products (energy-efficient and more repairable
products, products certified by recognized labels, Made in France and
refurbished products) accounted for 13.2% of Cdiscount’s product sales, up
2.9 points compared to 2021.
* In particular, 1 out of 3 phones and 1 out of 10 computer sold were
refurbished. Sales of high-tech refurbished products enabled to avoid the
emission of 8,600 tons of C0(2).
Cnova has been continuing implementing solutions to reduce the environmental
impact of its logistics for BtoC and BtoB activities:
* Transportation: 100% of deliveries and returns for Cdiscount.com contributed
to carbon-neutrality, thanks to strong and continuous commitment to reduce GHG
emissions (increase of bulk loading for light parcels, increase of the share
of parcels shipped without void, increase of the share of low carbon last-mile
deliveries) and sequestration of residual emissions with the endowment fund
“Plantons pour l’Avenir”.
* Packaging: Cnova has been continuing its action plan to reduce the impact of
packaging. In 2022, more than 1 out of 4 parcels was shipped without
packaging. At the end of 2022, 100k orders per month were also eligible for
reusable packaging on Cdiscount.com.
Cnova pursued as well its social and societal commitment:
* Diversity: For the 3(rd) time, Cdiscount was awarded by the Financial Times
as a Diversity Leader for its commitment to promote diversity within the
company.
* Gender parity: The share of women in each subsidiary of Cnova has been
increasing in 2022. At Cnova level, 52% of promotions for executives and top
executives are involving women.
* Charity: 8 projects related to the environment protection, fighting
inequalities, protecting childhood and health care were financed thanks to the
donation to the basket tool on Cdiscount.com.
Significant events since the end of December
On January 16, 2023, Mr. Thomas Metivier, 35 years old, Engineer of France’s
Corps des Mines, replaced Mr. Grenier as Cnova Executive Director and CEO. He
has also been appointed CEO of Cdiscount as of this date.
Outlook
In 2023, Cnova will accelerate the pace of its transformation, focusing on
strengthening profitability, growing the marketplace while leveraging on
advertising services and on the commercial success of Octopia and
C-Logistics’ solutions:
* B2C strategy to focus Cdiscount’s positioning on the French market &
improve profitability: be the 1st French E-merchant, offer a wide assortment
with attractive prices through the growing marketplace and high promotion
intensity
* B2B strategy to accelerate development and pave the way for future ARR(7)
growth and margin expansion: * Octopia’s acceleration with a strong
commercial pipeline of c. 100 prospects, 26 clients already signed and
accelerating GMV ramp-up of its 17 active clients at 2022 year-end;
* Revenue growth expected from C-logistics with 3 clients operational for its
end-to-end ecommerce supply solution.
In the 2(nd) quarter 2022, Cnova has launched an Efficiency Plan to swiftly
recalibrate its cost structure & capex level with a total of €75m savings
target(8) on a full-year basis by the end of 2023, representing 15% of the
total 2021 SG&A and CAPEX spendings. The Plan, supported by a dedicated
transformation team, already brought €47m in 2(nd) half of the year 2022, ie
an overperformance of +€17m compared to the July 28, 2022 guidance.
***
About Cnova N.V.
Cnova N.V., the French ecommerce leader, serves 8.8 million active customers
via its state-of-the-art website, Cdiscount. Cnova N.V.’s product offering
provides its 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. 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.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
Appendices
Cnova N.V. Full-year 2022 Consolidated Financial Statements(()(1))
Consolidated Income Statement Full Year 2022 Full Year 2021 * Change
€ millions
Net sales 1,700.2 2,162.5 ( 21.4)%
Cost of sales (1306.4) (1688.8) (22.6)%
Gross margin 393.8 473.6 ( 16.9)%
% of net sales 23.2% 21.9% +1.3pts
SG& A (()(2)) ( 439 . 6 ) ( 460 . 5 ) ( 4 . 6 )%
% of net sales (25.9)% (21.3)% (4.6pts)
Fulfillment (151.5) (170.5) (11.2)%
Marketing (88.2) (105.9) (16.7)%
Technology and content (153.8) (133.6) +15.2%
General and administrative (46.0) (50.5) (8.9)%
Operating EBIT (()(3)) (45.8) 13.1 (58.9)
% of net sales (2.7)% 0.6% (3.3pts)
Other expenses (4.6) (6.8) +2.2
Operating profit/(loss) ( 50 . 3 ) 6 . 3 ( 56 . 6 )
Net financial income/(expense) (72.5) (52.8) ( 37.3)%
Profit/(loss) before tax ( 122 . 9 ) ( 46 . 5 ) (76. 3 )
Income tax gain/(expense) (5.2) (4.8) +7.9%
Net profit/(loss) from continuing operations (128.0) (51.3) ( 76.7 )
% of net sales (7.5)% (2.4)% (5.2pts)
Net profit/(loss) from discontinued operations (()(4)) 2.7 1.7 +64.7%
Net profit/(loss) for the period ( 125 . 3 ) ( 49 . 7 ) ( 75 . 6)
% of net sales (7.4)% (2.3)% (5.1pts)
Attributable to Cnova equity holders (incl. discontinued) (125.6) (51.1) (74.5)
Attributable to non-controlling interests (incl. discontinued) +0.3 +1.4+ +1.1
Adjusted EPS ( €) (()(5)) (0. 36 ) (0. 15 ) (0. 2 1 )
*re-presented to consider CChezVous financials reclassified in discontinued
activities and IAS 38 reclassification impact from CAPEX to OPEX on various
SAAS development expenditures
1) Unaudited financial statements
2) SG&A: Selling, General and Administrative expenses
3) 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 and CChezVous (formerly Stootie)’s post-tax
net profit for the year ended 31 December 2022 and 2021 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 period.
Consolidated Balance Sheet 2022 End December 2021 End December
(€ millions)
ASSETS
Cash and cash equivalents 13.7 20.4
Trade receivables, net 83.0 150.9
Inventories, net 145.9 302.7
Current income tax assets 2.9 4.0
Other current assets, net 319.2 186.4
Total current assets 5 64 . 6 664 . 4
Other non-current assets, net 12.6 10.6
Deferred tax assets 42.1 43.6
Right of use, net 115.8 138.3
Property and equipment, net 19.1 23.4
Intangible assets, net 233.2 233.0
Goodwill 60.7 122.3
Total non-current assets 48 3 . 7 571.2
Assets held for sale 0.0 3.7
TOTAL ASSETS 1, 048 . 3 1,239 .4
EQUITY AND LIABILITIES
Current provisions 9.1 4.1
Trade payables 428.9 624.3
Current financial debt 127.9 84.2
Current lease liabilities 35.8 34.0
Current tax and social liabilities 67.0 104.4
Other current liabilities 210.5 216.9
Total current liabilities 879 . 2 1,067.9
Non-current provisions 6.0 8.8
Non-current financial debt 414.5 280.4
Non-current lease liabilities 105.3 130.8
Other non-current liabilities 18.1 3.1
Deferred tax liabilities 1.3 1.3
Total non-current liabilities 5 45 . 2 424.4
Liabilities held for sale - -
Share capital 17.3 17.3
Reserves, retained earnings and additional paid-in capital (465.2) (341.4)
Equity attributable to equity holders of Cnova ( 448 . 0 ) (324 .2 )
Non-controlling interests 71 . 8 71 .3
Total equity (3 76 . 1 ) (252 . 9)
TOTAL EQUITY AND LIABILITIES 1, 048 . 3 1,239.4
Consolidated Cash Flow Statement Full-year 2022 Full-year 2021
(€ millions, ended December )
Net profit/(loss) attributable to equity holders of the Parent (127.7) (52.0)
Net profit/(loss), attributable to non-controlling interests (0.3) 0.7
Net profit (loss) for the period excl. discontinued operations ( 128 .0 ) ( 51.3 )
Depreciation and amortization expense 97.8 89.0
(Gains) losses on disposal of non-current assets and impairment of assets (13.4) 1.8
Other non-cash items 3.3 2.9
Financial expense, net 72.5 52.4
Current and deferred tax (gains) expenses 5.2 4.8
Income tax paid (2.5) (3.6)
Change in operating working capital 14.6 (41.6)
Inventories of products 156. 7 (19.4)
Accounts payable (199.4) (40.7)
Accounts receivable 79.6 32.4
Working capital non-goods (22.3) (13.9)
Net cash from /( used in) continuing operating activities 49 .5 48.6
Net cash from /( used in) discontinued operating activities 6 . 0 0 . 6
Purchase of property, equipment & intangible assets (81.7) (98.9)
Purchase of non-current financial assets (0.3) (0.3)
Proceeds from disposal of prop., equip., intangible assets 22.6 6.4
Acquisition/disposal of subsidiaries, net of cash acquired 58.2 (0.2)
Changes in loans granted (including to related parties) (153.4) 129.6
Net cash from /( used in) continuing investing activities (1 54 . 5 ) 36 . 7
Net cash from /( used in) discontinued investing activities 15 . 2 ( 4 . 5 )
Increase (decrease) of capital of the holding company 0.0 -
Dividends paid to the non-controlling interests (0.0) (0.0)
Additions to financial debt 170.0 5.8
Repayments of financial debt (58.4) -
Repayments of lease liability (27.8) (27.9)
Interest paid on lease liability (7.8) (6.8)
Interest paid, net (57.3) (44.4)
Net cash from /( used in) continuing financing activities 18 . 6 (73 . 3)
Net cash from /( used in) discontinued financing activities (6. 3 ) 0.0
Effect of changes in foreign currency translation adjustments from discontinued operations 0.0 0.0
Change in cash and cash equivalents from continuing operations (86 .4) 12.0
Change in cash and cash equivalents from discontinued operations 1 5 . 0 ( 3 . 9 )
Cash and cash equivalents, net, at period begin 17.1 9.0
Cash and cash equivalents, net, at period end ( 5 4 . 3 ) 17 . 1
Upcoming Event
Wednesday, February 22, 2023 at 6:00 pm CET / 12:00am EDT Cnova full-year 2022 Financial Results Conference Call & Webcast
Conference Call and Webcast connection details
Conference Call Dial-In:
https://register.vevent.com/register/BI363470969f1344aab189223fb600602c
Webcast:
https://edge.media-server.com / (https://urldefense.com/v3/__https:/edge.media-server.com/mmc/p/6odov7ez__;!!HseEOGaABhuC!TnavpxRB7I9G28PlVgeWCWb7xy7Uv8u-RmR45nqXmvNekxcLVXFbmsbBU9o1JchJWPPAU9Q-gU_Kt9swUsCx63FXYCIDnDOWQ-4$)mmc/p/6odov7ez (https://urldefense.com/v3/__https:/edge.media-server.com/mmc/p/6odov7ez__;!!HseEOGaABhuC!TnavpxRB7I9G28PlVgeWCWb7xy7Uv8u-RmR45nqXmvNekxcLVXFbmsbBU9o1JchJWPPAU9Q-gU_Kt9swUsCx63FXYCIDnDOWQ-4$)
An archive of the webcast will be available for 12 months with the usage of the webcast link
1 Calculated as revenues (excluding VAT) divided by product GMV (Direct Sales
+ Marketplace, adjusted for VAT)
2 Like-for-like figures exclude cross-canal sales and Cdiscount Energy GMV for
1H21 and 1H22
3 EBITDA: operating profit/(loss) from ordinary activities (EBIT) adjusted for
operating depreciation & amortization of respectively €(89.6)m and
€(97.7)m during the full Year 2021 and 2022
4 Client & subscriber base on 31/12/2022
5 Average between October, November and December Médiamétrie studies
6 i.e., Sponsored products
7 Annual recurring revenues
8 2023 savings target of July 2022 did not factor the 2023 expected inflation
that was still highly uncertain
Attachment
* Cnova NV Press release Q4 Activity & FY 2022 Results
(https://ml-eu.globenewswire.com/Resource/Download/b0b06ad7-e29a-47d6-a721-a17ab2d0cd8b)
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