CNOVA
N.V.
2016 Financial Results
AMSTERDAM, February 23, 2017,
07:45 CET - Cnova N.V. (NASDAQ & Euronext in Paris:
CNV;
ISIN: NL0010949392) ("Cnova" or the "Company") today announced its
financial results for the fourth quarter and full year of
2016.[1]
-
GMV: €3.0 billion (+14%,
like-for-like)
-
Net sales: €1.9 billion (+11%,
l-f-l)
-
Gross profit: €255 million
(+11%)
-
Operating EBIT swings positive
at Cdiscount: €5 million (vs -€4 million in 2015)
-
Net cash position: €178 million
at December 31, 2016
-
Traffic: 842 million visits
(+11%)
-
Active customers: 8.2 million
(+13%)
Key figures
€ million |
Full Year(1) |
Change |
2016 |
2015 |
Reported |
L-F-L(2) |
GMV |
2,994.3 |
2,709.3 |
+10.5% |
+13.6% |
Net sales |
1,855.7 |
1,737.2 |
+6.8% |
+10.7% |
Gross profit |
255.3 |
229.4 |
+11.3% |
|
Gross margin |
13.8% |
13.2% |
+55 bp |
|
SG&A |
(258.1) |
(252.3) |
+2.3% |
|
Operating EBIT |
(2.8) |
(22.9) |
-87.7% |
|
Cdiscount |
4.6 |
(4.1) |
|
|
Net profit/(loss) (from continuing
activities) |
(69.4) |
(87.7) |
-20.8% |
|
Adjusted EPS (from continuing activities) |
(0.11) |
(0.12) |
|
|
2016 Financial
Performance
Gross merchandise
volume (GMV) totaled €3.0 billion, an increase of 13.6% versus
2015 on a like-for-like (l-f-l) basis (please see Footnote 2 on
Page 1). On a reported basis, GMV rose 10.5% compared to
2015.
This progression is explained
by:
-
Dynamic traffic: increase
of 10.8% year-on-year (y-o-y), driven by a growing mobile share: +503 basis points to 53% in 2016 (up to
56% in December). Mobile visits rose by 22%, and the mobile
conversion rate increased by more than 30 basis points on a yearly
basis. In 2016, Cdiscount posted the strongest SEO progression in
the French e-commerce sector according to Yooda;
-
Strong growth of orders and
number of items sold: y-o-y increases of 23.2%
and 22.1%, respectively;
-
Expanding marketplace share
of total GMV: increase to 31.4% (+332 basis points y-o-y) due to:
i) good performance of home, fashion and hi-tech categories, ii)
increase in the number of marketplace sellers and product
offerings, up by 20% and 48%, respectively, 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;
-
Growing number of active
customers: y-o-y increase of 13% to 8.2 million at the end of
2016. Membership of Cdiscount à volonté
(CDAV), Cdiscount's loyalty program whose members purchase at a
higher frequency than non-CDAV customers, more than doubled at the
end of 2016 compared to the end of 2015.
Net sales
totaled €1.9 billion in 2016, up 10.7% on a l-f-l basis compared to
2015 (+6.8% on a reported basis). Home furnishings and household
appliances accounted for 45% of direct sales, while hi-tech items
(AV and smartphones) and IT goods represented 36% of direct sales.
Marketplace commissions increased significantly by 38% y-o-y.
Gross profit
was €255 million with a corresponding margin of 13.8% (+55 basis
points y-o-y). This improvement resulted primarily from an
expanding marketplace contribution as well as consumer financing
service fees.
SG&A
costs amounted to €(258) million and were 13.9% of net sales
(compared to -€252 million, 14.5% of net sales, in 2015):
-
At Cdiscount, SG&A was €(251) million (13.5%
of net sales vs. 13.4% in 2015). The decrease in fulfillment costs
was offset by increases in on- and offline marketing expenses,
G&A costs as well as tech and content costs.
As a result, operating EBIT totaled €(3) million compared to €(23)
million last year.
The operating
loss reported for 2016 amounted to €(26) million (compared to
an operating loss of €(55) million in 2015).
Net financial expense was €(31)
million and included the interest expense associated with the
factoring costs from Cdiscount's consumer financing plan.
Net loss from
continuing operations amounted to €(69) million with an
adjusted EPS of €(0.11).
Net result from
discontinued operations amounted to €150 million, and presented
an adjusted EPS excluding non-recurring items of €(0.41), and
mainly consisted of: i) the gain related to the transfer of Cnova
Brazil to Via Varejo in the 4th quarter for €546 million, ii) Cnova
Brazil cumulative net result of €(220) million as of October 31,
2016 (date of the transfer to Via Varejo), and iii) €(178) million
of exchanges losses related to Cnova Brazil previously recorded in
equity.
Cash
Management:
Free cash
flow was €(22.9) million of which €(7.5) million from
Cdiscount.
-
Net cash from continuing
operating activities amounted to €21 million and included a
change in operating working capital of €22 million.
-
Capex (purchase of
property, equipment and intangible assets) was €(44) million, or
2.4% of net sales.
Net financial cash position
at December 31, 2016 was €178 million.
Customer offer
and service enhancements during 2016 centered on improvement of
existing and development of new services, including:
- large items (> 30 kgs):
same-day delivery Monday through Saturday;
- small items (< 30 kgs):
delivery 7 days a week as well as by appointment;
- marketplace vendor fulfillment
services (logistics and customer relations are handled directly by
Cdiscount);
- the strengthening of Cdiscount's
competitive position thanks to the implementation of a centralized
purchasing platform, "MaNo," by Groupe Casino and Groupe
Conforama;
- the launches of several new
innovative services:
-
Cstream, Cdiscount's multimedia streaming
service;
-
Cdiscount Mobile, Cdiscount's price competitive
4G mobile telephone service;
-
Cdiscount Cloud, unlimited photo storage plus 20
Go of video, music and document storage at no charge for CDAV
customers;
-
Cdiscount Express (previously Alimentaire
Express), Cdiscount's 90 minute delivery service in and around
Paris, free by appointment for CDAV members;
2016 perimeter
changes:
Over the course of 2016, the
Company has undergone a significant reconfiguration resulting in
streamlined, more efficient operations. Perimeter changes include
the:
-
sale of Cdiscount Thailand and Cdiscount
Vietnam;
-
closure of overseas sites Cdiscount Cameroun,
Cdiscount Côte d'Ivoire, Cdiscount Sénégal and Cdiscount Colombia;
and
-
merger of Cnova Brazil into Via Varejo.
As a result, 2015 and 2016
consolidated net profit/(loss) from continuing operations and KPIs
exclude the activities of these business units.
4th Quarter 2016
Highlights
GMV amounted
to €943 million for the 4th quarter 2016
(+11.3% l-f-l compared to the same period in 2015) and was boosted
by a record breaking Black Friday in November.
Net sales
totaled €584 million in the 4th quarter 2016
(+7.8% l-f-l). All product categories benefited from Black Friday
operations (up 80% compared to 2015), which also contributed to the
traffic's site dynamism.
Gross profit
totaled €75 million (+8.5% y-o-y) with a corresponding gross margin
of 12.9% (+74 basis points).
Operating
EBIT amounted to €1 million compared to €(2) million in 2015.
4th quarter 2016
operating EBIT at Cdiscount was €4 million.
Net loss from
continuing operations amounted to €(19) million with an
adjusted EPS of €(0.04).
Net result from
discontinued operations amounted to €341 million and presented
an adjusted EPS excluding non-recurring items of €(0.07) and mainly
consisted of: i) the gain related to the transfer of Cnova Brazil
to Via Varejo in the 4th quarter for €546 million, ii) Cnova Brazil
monthly net result of €(17) million as of October 31, 2016 (date of
the transfer to Via Varejo), and iii) €(178) million of exchanges
losses related to Cnova Brazil previously recorded in equity.
Outlook
Cdiscount is working to improve
its market positions as well as reinforce and develop its customer
offer and service enhancements through:
-
The expansion of CDAV offers (number of
available product offerings, promotional events, private sales) and
client base with a targeted growth of high double digit;
-
Increased product assortment variety and
expansion of the home furnishings category;
-
Continuous, accelerated increase of marketplace
vendors' quality and quantity;
-
Acceleration of marketplace profitability (take
rate through additional services offered to vendors) and
fulfillment services;
-
Growth and development of innovative financial
and other services;
-
Further improvement of customer satisfaction and
service levels on Cdiscount's site and app.
***
NASDAQ Delisting
The Company filed Form 25 with the
U.S. Securities and Exchange Commission (the "SEC") on
February 21, 2017, to initiate voluntary delisting of its
ordinary shares, par value €0.05 per share (the "ordinary shares"),
from the NASDAQ and to terminate the registration of the ordinary
shares under Section 12(b) of the U.S. Securities Exchange Act
of 1934, as amended (the "Exchange Act"). Delisting of the ordinary
shares from the NASDAQ is expected to become effective on March 3,
2017. The Company also intends to file a Form 15 with the SEC
on or about March 3, 2017, to suspend its U.S. public reporting
obligations under the Exchange Act.
The Company's ordinary shares will
continue to be listed on the Euronext Paris for the time being.
***
About Cnova N.V.
Cnova N.V., one of the leading e-Commerce
companies in France, serves 8.2 million active customers via its
state-of-the-art website, Cdiscount. Cnova N.V.'s product offering
of more than 20 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.
Forward-Looking
Statements
This press
release contains forward-looking statements. Such forward-looking
statements may generally be identified by words like "anticipate,"
"assume," "believe," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project,"
"future," "will," "seek" and similar terms or phrases.
Examples of forward-looking statements include, but are not limited
to, statements made regarding the possibility, timing and other
terms and conditions of the proposed transaction and the related
offer by Cnova's controlling shareholder Casino for the outstanding
shares of Cnova. The forward-looking statements contained in
this press release are based on management's current expectations,
which are subject to uncertainty, risks and changes in
circumstances that are difficult to predict and many of which are
outside of Cnova's control. Important factors that could cause
Cnova's actual results to differ materially from those indicated in
the forward-looking statements include, among others: the effect of
the reorganization between Cnova Brazil, Via Varejo and Cnova
on the ability of Cnova to retain and hire key personnel, maintain
relationships with its customers and suppliers, and maintain its
operating results and business generally; the outcome of any legal
proceedings that may be instituted against Cnova and others
relating to the reorganization between Cnova Brazil, Via Varejo and
Cnova; changes in global, national, regional or local economic,
business, competitive, market or regulatory conditions; and other
factors discussed under the heading "Risk Factors" in the U.S.
Annual Report on Form 20-F for the year ended
December 31, 2015, filed with the SEC on July 22,
2016, and other documents filed with or furnished to the SEC. Any
forward-looking statements made in this press release speak only as
of the date hereof. Factors or events that could cause Cnova's
actual results to differ from the statements contained herein may
emerge from time to time, and it is not possible for Cnova to
predict all of them. Except as required by law, Cnova undertakes no
obligation to publicly update any forward-looking statements,
whether as a result of new information, future developments or
otherwise.
***
Cnova Investor Relations Contact:
Cnova N.V.
Head of Investor Relations
+31 20 795 06 71
investor@cnova.com
|
Media Contact:
Cnova N.V.
Head of Communications
+ 31 20 795 06 76
directiondelacommunication@cnovagroup.com |
Annexes
Annex A - Cnova
N.V. (1)
Consolidated Financial Statements
Consolidated Income Statement |
|
Full Year |
Change |
|
4th
Quarter |
Change |
€ millions |
|
2016 |
2015 |
|
2016 |
2015 |
Net sales |
|
1,855.7 |
1,737.2 |
+6.8% |
|
584.1 |
571.3 |
+2.2% |
Cost of sales |
|
(1,600.4) |
(1,507.8) |
+6.1% |
|
(508.8) |
(501.8) |
+1.4% |
Gross
profit |
|
255.3 |
229.4 |
+11.3% |
|
75.3 |
69.4 |
+8.5% |
% of net sales (Gross margin) |
|
13.8% |
13.2% |
+55 bp |
|
12.9% |
12.2% |
+74 bp |
SG&A(2) |
|
(258.1) |
(252.3) |
+2.3% |
|
(74.1) |
(71.7) |
+3.3% |
% of
net sales |
|
-13.9% |
-14.5% |
+61 bp |
|
-12.7% |
-12.5% |
-14 bp |
Fulfillment |
|
(125.7) |
(136.2) |
-7.7% |
|
(34.2) |
(37.8) |
-9.6% |
Marketing |
|
(33.2) |
(23.9) |
+38.9% |
|
(11.2) |
(7.4) |
+51.8% |
Technology and
content |
|
(55.8) |
(47.6) |
+17.2% |
|
(15.5) |
(13.0) |
+19.7% |
General and
administrative |
|
(43.4) |
(44.6) |
-2.7% |
|
(13.1) |
(13.5) |
-2.7% |
Operating EBIT(3) |
|
(2.8) |
(22.9) |
-87.7% |
|
1.3 |
(2.2) |
-157.4% |
% of net sales |
|
-0.2% |
-1.3% |
+ 117 bp |
|
+0.2% |
-0.4% |
+60 bp |
Other
expenses |
|
(22.7) |
(32.6) |
-30.2% |
|
(5.7) |
(12.0) |
-52.7% |
Operating profit/(loss) |
|
(25.5) |
(55.5) |
-54.0% |
|
(4.4) |
(14.2) |
-69.0% |
Net
financial income/(expense) |
|
(31.0) |
(16.2) |
+91.3% |
|
(4.4) |
(11.0) |
-60.3% |
Profit/(loss) before tax |
|
(56.6) |
(71.7) |
-21.1% |
|
(8.8) |
(25.2) |
-65.2% |
Income tax
gain/(expense) |
|
(12.9) |
(16.0) |
-19.6% |
|
(10.5) |
(13.2) |
-20.4% |
Net profit/(loss) from continuing operations |
|
(69.4) |
(87.7) |
-20.8% |
|
(19.3) |
(38.4) |
-49.8% |
Net
profit/(loss) from discontinued operations |
|
150.4 |
(171.3) |
-187.8% |
|
341.0 |
(104.5) |
-426.4% |
Net
profit/(loss) for the period |
|
81.0 |
(259.0) |
-131.2% |
|
321.8 |
(142.9) |
-325.3% |
% of
net sales |
|
4.4% |
-14.9% |
|
|
55.1% |
-25.0% |
|
Attributable to Cnova
equity holders (incl. discontinued) |
|
87.1 |
(244.2) |
|
|
321.5 |
(138.6) |
|
Attributable to non-controlling interests (incl. discontinued) |
|
(6.1) |
(14.8) |
|
|
0.3 |
(4.2) |
|
Adjusted EPS (€) from
continuing operations |
|
(0.11) |
(0.12) |
|
|
(0.04) |
(0.06) |
|
Adjusted EPS (€) from
discontinued operations (4) |
|
(0.41) |
(0.34) |
|
|
(0.07) |
(0.21) |
|
Adjusted EPS (€) |
|
(0.52) |
(0.46) |
|
|
(0.11) |
(0.27) |
|
-
In accordance with IFRS 5
(Non-current Assets Held for Sale and Discontinued Operations), all
figures 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 Cameroun, Cdiscount Colombia,
Cdiscount Côte d'Ivoire, Cdiscount Ecuador, Cdiscount Panama,
Cdiscount Sénégal, Cdiscount Thailand and Cdiscount Vietnam, and
iii) the sale of the specialty site MonShowRoom. The results from
these activities are reported under net profit/(loss) from
discontinued operations.
-
SG&A: selling, general and
administrative expenses.
-
Operating EBIT: operating
profit/(loss) from ordinary activities.
-
Adjusted EPS: earnings per
share, excluding non-recurring items, therefore excluding in FY
2016 and Q4 2016 the gain related to the transfer of Cnova Brazil
to Via Varejo.
Consolidated Balance
Sheet
At December 31 (€ millions) |
|
2016 |
|
2015 |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
15.3 |
|
400.8 |
Trade receivables,
net |
|
91.1 |
|
129.7 |
Inventories, net |
|
224.8 |
|
415.0 |
Current income tax
assets |
|
1.3 |
|
0.8 |
Other
current assets, net |
|
346.2 |
|
195.4 |
Total current assets |
|
678.7 |
|
1,141.6 |
|
|
|
|
|
Other non-current
assets, net |
|
4.6 |
|
23.6 |
Deferred tax
assets |
|
-- |
|
11.6 |
Property and
equipment, net |
|
15.3 |
|
33.5 |
Intangible assets,
net |
|
71.9 |
|
116.9 |
Goodwill |
|
56.5 |
|
391.4 |
Total non-current assets |
|
148.4 |
|
577.0 |
|
|
|
|
|
TOTAL ASSETS |
|
827.1 |
|
1,718.7 |
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
Current
provisions |
|
6.8 |
|
7.5 |
Trade payables |
|
575.0 |
|
1,216.0 |
Current financial
debt |
|
93.6 |
|
132.2 |
Current tax
liabilities |
|
46.4 |
|
51.2 |
Other current
liabilities |
|
110.7 |
|
178.5 |
Total current liabilities |
|
832.5 |
|
1,585.4 |
|
|
|
|
|
Non-current
provisions |
|
12.1 |
|
11.8 |
Non-current financial
debt |
|
|
|
14.8 |
Other non-current
liabilities |
|
2.1 |
|
8.6 |
Total non-current liabilities |
|
14.2 |
|
35.2 |
|
|
|
|
|
Share capital |
|
17.2 |
|
22.1 |
Reserves, retained
earnings and additional paid-in capital |
|
(35.7) |
|
83.4 |
Equity attributable to equity holders of Cnova |
|
(18.5) |
|
105.5 |
Non-controlling interests |
|
(1.2) |
|
(7.4) |
Total equity |
|
(19.7) |
|
98.1 |
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
827.1 |
|
1,718.7 |
Consolidated Cash Flow Statement |
|
Last Twelve
Months |
|
Last Three
Months |
at December 31 (€ millions) |
|
2016 |
2015 |
|
2016 |
2015 |
Net profit/(loss) from
continuing operations |
|
(69.6) |
(87.1) |
|
(19.8) |
(38.2) |
Net profit/(loss),
attributable to non-controlling interests |
|
0.2 |
(0.7) |
|
0.5 |
(0.2) |
Net profit (loss) for the period excl. discontinued
operations |
|
(69.4) |
(87.7) |
|
(19.3) |
(38.4) |
Depreciation and
amortization expense |
|
20.6 |
20.7 |
|
4.6 |
6.5 |
(Income) expenses on
share-based payment plans |
|
0.1 |
0.3 |
|
-- |
0.1 |
(Gains) losses on
disposal of non-current assets and impairment of assets |
|
6.1 |
13.4 |
|
(1.2) |
5.4 |
Other non-cash
items |
|
0.5 |
0.9 |
|
-- |
-- |
Financial expense,
net |
|
31.0 |
16.2 |
|
4.4 |
11.0 |
Current and deferred
tax (gains) expenses |
|
12.9 |
16.0 |
|
10.5 |
13.2 |
Income tax paid |
|
(2.1) |
(2.9) |
|
(0.3) |
(1.9) |
Change in operating
working capital |
|
21.6 |
36.9 |
|
170.8 |
189.3 |
Inventories of products |
|
19.3 |
(35.3) |
|
1.2 |
(17.6) |
Trade
payables |
|
(37.3) |
32.9 |
|
143.2 |
218.8 |
Operating payables |
|
12.0 |
1.6 |
|
29.4 |
32.5 |
Trade
receivables |
|
35.2 |
1.9 |
|
(11.7) |
(37.6) |
Other |
|
(7.6) |
35.8 |
|
8.6 |
(6.8) |
Net
cash from/(used in) continuing operating activities |
|
21.1 |
13.8 |
|
169.6 |
185.2 |
Net cash from/(used in) discontinued operating
activities |
|
(585.5) |
(2.4) |
|
(200.1) |
221.4 |
Purchase of property,
equipment & intangible assets |
|
(44.0) |
(42.1) |
|
(20.6) |
(9.3) |
Purchase of
non-current financial assets |
|
(2.0) |
(0.9) |
|
(1.4) |
(0.6) |
Proceeds from disposal
of prop., equip., intangible assets |
|
0.6 |
2.5 |
|
0.4 |
2.4 |
Proceeds from disposal
of non-current financial assets |
|
-- |
2.2 |
|
-- |
-- |
Movement of perimeter,
net of cash acquired |
|
21.0 |
5.6 |
|
21.0 |
-- |
Investments in
entities |
|
(3.0) |
-- |
|
-- |
-- |
Changes in
loans granted (including to related parties ) |
|
106.5 |
65.9 |
|
106.5 |
4.2 |
Net
cash from/(used in) continuing investing activities |
|
78.9 |
33.2 |
|
105.8 |
(3.3) |
Net cash from/(used in) discontinued investing
activities |
|
25.1 |
(18.7) |
|
36.4 |
1.5 |
Transaction with
owners of non-controlling interests |
|
-- |
(18.6) |
|
-- |
(5.4) |
Additions to financial
debt |
|
(7.4) |
1.3 |
|
(13.7) |
1.3 |
Repayments of
financial debt |
|
(10.2) |
-- |
|
(3.1) |
1.2 |
Changes in loans
received |
|
(275.0) |
(8.0) |
|
(476.8) |
(241.8) |
Interest
paid, net |
|
(31.7) |
(15.1) |
|
(5.8) |
(10.8) |
Net
cash from/(used in) continuing financing activities |
|
(324.3) |
(40.3) |
|
(499.4) |
(255.5) |
Net cash from/(used in) discontinued financing
activities |
|
137.5 |
(33.6) |
|
(6.7) |
(13.2) |
Effect of
changes in foreign currency translation adjustments from continuing
operations |
|
-- |
-- |
|
-- |
-- |
Effect of
changes in foreign currency translation adjustments from
discontinued operations |
|
259.6 |
(133.4) |
|
203.8 |
(34.0) |
Change in cash and cash equivalents from continuing
operations |
|
(224.3) |
6.7 |
|
(224.0) |
(73.5) |
Change in cash and cash equivalents from discontinued
operations |
|
(163.3) |
(188.0) |
|
33.4 |
175.7 |
Cash and cash equivalents, net, at period begin |
|
391.8 |
573.2 |
|
194.9 |
289.7 |
|
|
|
|
|
|
|
Cash and cash equivalents, net, at period end |
|
4.2 |
391.8 |
|
4.2 |
391.8 |
Annex B -
Cdiscount
Additional Financial Information
Cdiscount
€ million |
Full Year |
Change |
2016 |
2015 |
GMV(1) |
2,994.3 |
2,709.3 |
+10.5% |
Net sales |
1,855.7 |
1,737.2 |
+6.8% |
Gross profit |
255.3 |
229.4 |
+11.3% |
Gross margin(2) |
13.8% |
13.2% |
+55 bp |
SG&A(3) |
(250.7) |
(233.5) |
+7.4% |
Operating EBIT(4) |
4.6 |
(4.1) |
-211.7% |
Operating EBIT margin |
0.2% |
-0.2% |
+48 bp |
Net profit/(loss) from continuing activities |
(60.4) |
(60.5) |
-0.2% |
Cdiscount
€ million |
4th
Quarter |
Change |
2016 |
2015 |
GMV(1) |
943.2 |
883.5 |
+6.8% |
Net sales |
584.1 |
571.3 |
+2.2% |
Gross profit |
75.3 |
69.4 |
+8.5% |
Gross margin(2) |
12.9% |
12.2% |
+74 bp |
SG&A(3) |
(71.0) |
(62.6) |
+13.4% |
Operating EBIT(4) |
4.4 |
6.9 |
-36.6% |
Operating EBIT margin |
0.7% |
1.2% |
-46 bp |
Net profit/(loss) from continuing activities |
(18.1) |
(27.3) |
-33.9% |
-
GMV: gross merchandise volume.
GMV is defined as product sales + other revenues + marketplace
business volumes (calculated based on approved and sent orders) +
taxes.
-
Gross margin: gross profit as a
percentage of net sales.
-
SG&A: selling, general and
administrative expenses.
-
Operating EBIT: operating
profit/(loss) from ordinary activities.
Annex C -
Definitions
Adjusted EPS or Adjusted earnings per share
- calculated as adjusted net profit/(loss)
divided by the weighted average number of ordinary shares
outstanding during the applicable period. See "Non-GAAP
Reconciliations" section for additional information.
Adjusted net profit/(loss) -
calculated as net profit/(loss) before Other Expenses and the
related tax impacts. See "Non-GAAP Reconciliations" section for
additional information.
Free cash flow - Net cash from/(used in) operating
activities less purchase of property and equipment and intangible
assets as presented in the consolidated cash flow statement. See
"Non-GAAP Reconciliations" section for additional information.
Gross profit - Gross profit is
calculated as net sales less cost of sales. See "Non-GAAP
Reconciliations" section for additional information.
Gross margin - Gross profit as
a percentage of net sales. See "Non-GAAP Reconciliations" section
for additional information.
Gross merchandise volume (GMV) - Gross Merchandise
Volume (GMV) is defined as product sales + other revenues +
marketplace business volumes (calculated based on approved and sent
orders) + taxes.
Marketplace
share - Includes marketplace share of www.cdiscount.com in
France.
Net Cash / (Net Financial Debt) - calculated as the
sum of (i) cash and cash equivalents and (ii) the current account
provided by Cnova or its subsidiaries to Casino pursuant to cash
pool arrangements, less financial debt. See "Non-GAAP
Reconciliations" section for additional information.
Adjusted EBITDA - calculated as operating
profit/(loss) from ordinary activities (Operating EBIT) before
depreciation and amortization expense and share based payment
expenses. See "Non-GAAP Reconciliations" section for
additional information.
Operating profit/(loss) from ordinary activities (Operating
EBIT) - calculated as operating profit/(loss) before other
expenses (restructuring, initial public offering expenses,
litigation, gain/(loss) from disposal of non-current assets and
impairment of assets).
Change in Operating Working Capital - calculated as
the sum of the changes in inventories of products, trade payables,
operating payables, operating receivables and other items of the
operating working capital as presented in the Consolidated Cash
Flow Statement.
Other expenses - calculated as the sum of
restructuring, initial public offering expenses, litigation,
gain/(loss) from disposal of non-current assets and impairment of
assets.
Cash loss from activities -
calculated from entries on the cash flow statement in the following
way: net profit/(loss) for the last twelve months, plus
depreciation and amortization expense, plus (income)/expenses on
share-based payment plans, plus (gains)/losses on disposal of
non-current assets and impairment of assets, plus share of
(profits)/losses of associates, plus other non-cash items plus
financial expense, net, plus current and deferred tax
(gains)/expenses, plus income tax paid.
Annex D - Non-GAAP
Reconciliations
In addition to disclosing
financial results in accordance with International Financial
Reporting Standards, or IFRS, this earnings release contains
non-GAAP financial measures that Cnova uses as measures of its
performance. These non-GAAP measures should be viewed as a
supplement to and not a substitute for Cnova's IFRS measures of
performance and financial results in accordance with IFRS and
reconciliations from these results should be carefully
evaluated.
Restatements, adjustments and
reclassifications:
In
accordance with IFRS5, all figures 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 Cameroun,
Cdiscount Colombia, Cdiscount Côte d'Ivoire, Cdiscount Ecuador,
Cdiscount Panama, Cdiscount Sénégal, Cdiscount Thailand and
Cdiscount Vietnam, and iii) the sale of the specialty site
MonShowRoom. These activities are reported as discontinued.
Adjusted net profit/(loss)
Adjusted earnings per share
(Adjusted EPS)
Adjusted net profit/(loss) is
calculated as net profit/(loss) before restructuring, initial
public offering expenses, litigation, gain/(loss) from disposal of
non-current assets and impairment of assets and the related tax
impacts.
Adjusted net profit/(loss) Cnova
is a financial measure used by Cnova's management and board of
directors to evaluate the overall financial performance of the
business. In particular, the exclusion of certain expenses in
calculating adjusted net profit/(loss) facilitates the comparison
of income on a period-to-period basis.
Adjusted EPS is calculated as
adjusted net profit/(loss) divided by the weighted average number
of outstanding ordinary shares of Cnova during the applicable
period.
The following table reflects the
reconciliation of net profit/(loss) attributable to equity holders
of Cnova to adjusted net profit/(loss) attributable to equity
holders of Cnova and presents the computation of Adjusted EPS for
each of the periods indicated.
€
millions |
|
FY 2016 |
FY 2015 |
Q4 2016 |
Q4 2015 |
Net
profit/(loss) for the period attributable to equity holders of
Cnova |
|
(69.4) |
(87.7) |
(19.3) |
(38.4) |
Excluding: |
|
|
|
|
|
Restructuring
expenses |
|
11.0 |
11.7 |
3.3 |
4.8 |
Litigation
expenses |
|
5.7 |
3.1 |
3.4
--
|
1.3 |
Initial public
offering expenses |
|
-- |
3.6 |
-- |
(0.2) |
Gain/(loss) from
disposal of non-current assets |
|
-- |
0.1 |
(0.6) |
0.1 |
Asset impairment
charges |
|
6.0 |
14.1 |
(0.5) |
6.1 |
Income tax effect on
above adjustments |
|
-- |
-- |
-- |
-- |
Minority
interest effect on above adjustments |
|
-- |
(0.1) |
-- |
(0.1) |
Adjusted net profit/(loss) for the period attributable to
equity holders of Cnova |
|
(46.8) |
(55.3) |
(13.6) |
(26.4) |
Weighted
average number of ordinary shares |
|
426,486,045 |
442,617,845 441,297,846 |
378,090,646 |
442,617,845 |
Adjusted EPS (€) from continuing operations |
|
(0.11) |
(0.12) |
(0.04) |
(0.06) |
Free cash flow
Free cash flow is calculated as
net cash from/(used in) continuing operating activities less
capital expenditures (purchases of property, equipment and
intangible assets) as presented in our cash flow statement. Free
cash flow is a financial measure used by Cnova's management and
board of directors to evaluate the overall financial performance of
the business. In particular, it allows the comparison of
operational cash flow after capex on a period-to-period basis.
€
millions |
|
Dec. 31, 2016 (LTM) |
Net
cash from/(used in) continuing operating activities |
|
21.1 |
Less
purchase of property, equipment & intangible assets |
|
(44.0) |
Free cash flow |
|
(22.9) |
Gross profit and
Gross margin
Gross profit is calculated as net sales less cost of sales. Gross
margin is gross profit as a percentage of net sales. Gross profit
and gross margin are included in this press release because they
are performance measures used by our management and board of
directors to determine the commercial performance of our
business.
The following tables present a
computation of gross profit and gross margin for each of the
periods indicated:
€
millions |
|
FY 2016 |
FY 2015 |
Q4 2016 |
Q4 2015 |
Net
sales |
|
1,855.7 |
1,737.2 |
584.1 |
571.3 |
Less: Cost
of sales |
|
(1,600.4) |
(1,507.8) |
(508.8) |
(501.8) |
Gross Profit |
|
255.3 |
229.4 |
75.3 |
69.4 |
Gross
margin |
|
13.8% |
13.2% |
12.9% |
12.2% |
Net Cash/(Net Financial Debt)
Net cash/(Net financial debt) is
calculated as the sum of (i) cash and cash equivalents and (ii)
cash pool balances held in arrangements with Casino Group and
presented in other current assets, less (iii) current and (iv)
non-current financial debt. Net cash/(Net financial debt) is a
measure that provides useful information to management and
investors to evaluate our cash and cash equivalents and debt levels
and our current account position, taking into consideration the
cash pool arrangements in place among certain members of the Casino
Group, and therefore assists investors and others in understanding
our cash position and liquidity.
The following table presents a
computation of net cash/(net financial debt) for each of the
periods indicated:
€
millions |
|
Dec. 31, 2016 |
Dec. 31, 2015 |
Cash and cash
equivalents |
|
15.3 |
400.8 |
Plus Cash pool
balances with Casino presented in other current assets |
|
246.7 |
-- |
Less net current
financial debt |
|
(83.9) |
(132.2) |
Less
non-current financial debt |
|
-- |
(14.8) |
Net cash/(Net financial debt) |
|
178.1 |
253.8 |
Adjusted
EBITDA
Adjusted EBITDA is calculated as
operating profit/(loss) from ordinary activities (operating EBIT)
before depreciation and amortization expense and share based
payment expenses. We have provided a reconciliation below of this
measure to operating profit/(loss) from ordinary activities
(operating EBIT) - see definition above - the most directly
comparable GAAP financial measure, for each of the periods
indicated.
€
millions |
|
FY 2016 |
FY 2015 |
Q4 2016 |
Q4 2015 |
Operating profit before restructuring, litigation,
gain/(loss) from disposal of non-current assets and impairment of
assets |
|
(2.8) |
(22.9) |
1.3 |
(2.2) |
Excluding: Share based
payment expenses |
|
0.1 |
0.3 |
-- |
(0.1) |
Excluding:
Depreciation and amortization |
|
20.5 |
20.6 |
5.3 |
5.3 |
Adjusted EBITDA |
|
17.8 |
(2.0) |
6.6 |
3.1 |
Cash loss from
activities
Cash loss from activities is
calculated from entries on the cash flow statement in the following
way: net profit/(loss) for the last twelve months, plus
depreciation and amortization expense, plus/(income) expenses on
share-based payment plans, plus (gains)/losses on disposal of
non-current assets and impairment of assets, plus share of
(profits)/losses of associates, plus other non-cash items plus
financial expense, net, plus current and deferred tax
(gains)/expenses, plus income tax paid.
€
millions |
|
Dec. 31, 2016 (LTM) |
|
|
|
Net profit/(loss) for
the period from continuing activities |
|
(69.4) |
Depreciation and
amortization expense |
|
20.6 |
(Income) expenses on
share-based payment plans |
|
0.1 |
(Gains) losses on
disposal of non-current assets and impairment of assets |
|
6.1 |
Share of (profits)
losses of associates |
|
-- |
Other non-cash
items |
|
0.5 |
Financial expense,
net |
|
31.0 |
Current and deferred
tax (gains) expenses |
|
12.9 |
Income tax
paid |
|
(2.1) |
Cash loss from activities |
|
(0.5) |
-
Ernst & Young have
substantially completed their audit of the annual financial
statements and their audit report is currently being prepared. In
accordance with IFRS 5 (Non-current Assets Held for Sale and
Discontinued Operations), all figures 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
Cameroun, Cdiscount Colombia, Cdiscount Côte d'Ivoire, Cdiscount
Ecuador, Cdiscount Panama, Cdiscount Sénégal, Cdiscount Thailand
and Cdiscount Vietnam, and iii) the sale of the specialty site
MonShowRoom. The results from these activities are reported under
net profit/(loss) from discontinued operations.
-
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, and ii) the voluntary pullback of B2B sales
initiated in the 3rd quarter of
2016.
Cnova 2016 Financial
Results
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Cnova N.V. via Globenewswire
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