Cnova N.V. : First Quarter 2018 Activity
April 12 2018 - 12:40AM
CNOVA
N.V.
First Quarter 2018 Activity
AMSTERDAM - April 12, 2018, 07:45
CEST - Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392)
("Cnova") today announced unaudited operating data for the quarter
ended March 31, 2018.
-
GMV: €854 million
(+13%)[1]
-
Unique monthly visitors reach
the 20 million threshold[2]
-
Intensification of multichannel
strategy
-
Current network of 11 showrooms, with an
objective of 20 by end June
-
25% growth in showroom categories in 1Q18
-
Ramp-up and enrichment of
loyalty programs
-
Cdiscount à Volonté ("CDAV") share of GMV: 34%
(+575 bp)
-
New CDAV package at €29/year including an
unlimited press offer
-
Implementation of a daily product subscription
offer
-
Launch of Cdiscount Famille
loyalty program
-
Expansion of the marketplace
and its service ecosystem
-
Marketplace GMV share: 32.5% (+39 bp)
-
40 million SKUs (+81% y-o-y)
-
Fulfillment by Cdiscount share: 20% at end March
(+9 pts vs 1Q17)
-
Commercial success of Premium Packs
-
Further democratization of
services
-
Cinstallé: success of the installation services
covering almost 90k SKUs
-
Instant credit "Coup de
Pouce:" dynamic with more than 200 credits/day
-
Launch of long-term leasing on more than 800
SKUs
-
Reinforcing express delivery
leadership
Emmanuel Grenier, Cnova CEO, commented:
"The first
quarter was marked by the implementation of numerous strategic
initiatives.
After the
tripling of our product offering eligible to express delivery last
year, the execution of our strategic plan is now focused on
customer experience and multichannel: the latter posted strong
commercial performance with 7 new showrooms, same-day delivery was
extended to additional large cities, and our loyal customers now
benefit from an unlimited press offer and "Cdiscount Famille". True
to our DNA, we continue to democratize services with the launch of
a long-term leasing offer.
At the same time,
we are strengthening our strategic pillar of traffic and data
monetization that generates more and more revenues."
1st Quarter 2018
Highlights
GMV (gross
merchandise volume) totaled €854 million in the 1st quarter
2018, an increase of 13.4% versus 2017, positively impacted by the
rapid growth from multichannel sales (+7.3 points). Organic growth
of 6.1% was impacted by the shift of French consumer spending
habits from the January winter sales to the record breaking Black
Friday in 4Q17. Besides, the outdoor product category was affected
by the rainy weather in March. In contrast, Audio Visual category,
benefiting from the first World Cup effect in March, posted dynamic
performance with a double-digit growth over the quarter.
The marketplace regained momentum, driven by the expansion
of its assortment to 40 million SKUs (+81% y-o-y) with a GMV share
of 32.5% in the 1st quarter
2018, an increase of 39 basis points compared to the same period in
2017.
Net sales
totaled €524 million in the 1st quarter
2018, up 15.2% compared to 2017, presenting an organic growth of
5.1% with a 10.1 points contribution from multichannel sales.
Monetization revenue streams, benefiting from a substantial growth
of 30%, also contributed to net sales expansion. Home Furnishings
and Household Appliances combined accounted for 49% of direct
sales. Hi-tech items (audio visual and smartphones) and IT goods
represented 37%.
Traffic at
Cdiscount.com totaled 240 million visits in the 1st
quarter 2018, driven by mobile: mobile now
accounts for 60% of traffic in the quarter and 41% of GMV (compared
to 36% in the same period in 2017). For the first time according to
Médiamétrie, Cdiscount reached the 20 million threshold of unique
monthly visitors on desktop and mobile devices[3].
The number of active customers was 8.6 million at the end of the
quarter. Membership of Cdiscount
à volonté ("CDAV") loyalty program continued to expand
y-o-y, increasing by 33% compared to March 2017 and now represents
more than 1/3 of GMV.
Cdiscount ranks 1st in France in
terms of interactions on social media among
retail banners[4]. This
leadership was reinforced during the 1st quarter,
with over 4 million interactions (likes, shares, comments) across
all social media. On Facebook, Cdiscount's
main account along with specialized sub accounts (Home, Video
Games, Wine) now aggregate close to 2 million followers. On
Instagram, where our account is focused on
decoration and conviviality, the number of interactions in the
1st quarter
already exceeded 2017 full year level. The recent launch of the
Pinterest account also proves to be a
success.
Product offerings
and services
-
Creation of an outlet in
the Fashion category, with already one
landmark French banner as a partner.
-
Dynamic growth in services provided to the
clients: Cdiscount Energie experienced a 50%
subscriber increase since 2017 year-end, and the product
installation services, Cinstallé, covering around 90,000 references,
already posted a very promising performance.
-
Enhancements in financial services: acceleration
of the instant consumer credit offer, Coup de Pouce, with more than 200 credits approved
every day and launch of a competitive long-term
leasing offer encompassing more than 800 Telephony, TV and Home
Appliances references.
-
New package for Cdiscount's loyalty program,
Cdiscount à Volonté
("CDAV"): annual fee of €29, the most affordable loyalty program on
the market, for an offer now including a free and unlimited access
to more than 200 magazines/newspapers.
-
Implementation of a daily
product subscription offer, with discounts that range from 5%
to 20%.
-
Creation of "Cdiscount
Famille" program, a family loyalty program offering exclusive
promotions and offers on specific categories such as Toys, Baby
Care products and children's Fashion.
Multichannel
strategy
-
Sales generated in Géant hypermarkets and Casino
supermarkets contributed 7 pts of GMV growth in the 1st quarter,
representing revenues of €48 million.
-
Opening of 7 new Cdiscount
showrooms in Géant hypermarkets, building on the success of the
first 4 showrooms launched in the 2nd half of
2017. The network should reach 20 showrooms by end June. These
showrooms now benefit from an enhanced customer experience:
Cdiscount best price guaranteed, new features available on
interactive terminals and payment in 4 installments for Casino and
Cdiscount credit card holders.
-
Categories presented in showrooms benefited from
a revived growth of 25% on this quarter.
Extension of
express delivery leadership
Monetization
Innovation
· A
recognized capacity to innovate
-
Numerous prizes throughout the 1st quarter:
Cdiscount was awarded the innovation and the "grand prix des Rois"
prizes at the 2018 Supply Chain Show for its partnership with
Exotec Solutions, a start-up offering robotized picking system
solution within Cdiscount's warehouses, that the company was first
to support. Exotec also won the SITL first award for best
innovation. The 1st prize was
also awarded by the Fevad for the real-time geolocation of
large-products deliveries developed in partnership with Bringg.
· An
active incubator
-
Cdiscount's logistics innovation incubator, The
Warehouse, already housing 4 start-ups, will incorporate 2 new
ones in April: e-cobot (implementation of robots specialized in
picking processes) and HRV (workstation ergonomics improvement in
warehouses using virtual reality).
-
6 new POCs are underway on various innovation
fields such as cybersecurity, parcel tracking and predictive
geomarketing.
-
An innovation corner was created on Cdiscount
website to enable selected start-ups to commercialize their
products benefiting from Cdiscount's traffic and expertise.
First Quarter
Activity
Cnova N.V. |
First
Quarter(1) |
Change |
2018 |
2017 |
Reported(1)(2) |
Organic(3) |
GMV(4)(5)
(€ millions) |
853.9 |
753.3 |
+13.4% |
+6.1% |
Marketplace
share |
32.5% |
32.1% |
+39 bp |
Mobile
share |
40.6% |
36.3% |
+430 bp |
CDAV share |
33.7% |
28.0% |
+575 bp |
Net sales(5)
(€ millions) |
524.2 |
455.1 |
+15.2% |
+5.1% |
Traffic (visits in
millions) |
240.1 |
233.8 |
+2.7% |
Mobile
share |
60.3% |
56.9% |
+341 bp |
Active customers(6)
(millions) |
8.6 |
8.3 |
+4.2% |
Orders(7)
(millions) |
6.5 |
6.5 |
-0.6% |
CDAV share |
33.6% |
26.9% |
+672 bp |
Number of items sold (millions) |
12.2 |
12.5 |
-2.4% |
-
All figures are
unaudited.
-
Reported figures present all
revenues generated by Cdiscount, including the technical goods
sales realized in Casino Group's hypermarkets and supermarkets in
relation with the multichannel agreement effective since June 19,
2017.
-
Organic growth: figures exclude
sales realized in Casino Group's hypermarkets and supermarkets,
with the exception of sales made in showrooms (total exclusion
impact of -7.3 pts and -10.1 pts on GMV and net sales growth,
respectively).
-
GMV (gross merchandise volume)
is defined as, all included taxes, product sales + other revenues +
marketplace business volumes (calculated based on approved and sent
orders) + for the first time this quarter, services GMV which
contributed to growth for +0.9 pt in 1Q18 and +0.01 pts in
1Q17.
-
Following the new accounting
standards on revenues, IFRS 15, GMV and net sales were adjusted in
2017 by respectively -€20 million and -€17 million to
present comparable data.
-
Active customers at the end of
March having purchased at least once through Cdiscount sites and
app 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 8.6 million
active customers via its state-of-the-art website, Cdiscount. Cnova
N.V.'s product offerings of more than 40 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@cnovagroup.com
Tel: +31 20 301 22 40 |
Media contact:
directiondelacommunication@cdiscount.com
Tel: +33 5 56 30 07 14 |
[1] GMV (gross
merchandise volume) is defined as, all included taxes, product
sales + other revenues + marketplace business volumes (calculated
based on approved and sent orders) + for the first time this
quarter, services GMV which contributed to growth for +0.9 pt in
1Q18 and +0.01 pts in 1Q17
[2] Latest
Médiamétrie studies released presenting November and December 2017
statistics
[3] Latest
Médiamétrie studies released presenting November and December 2017
statistics
[4] According
to a Sprinklr study released in February 2018 and a Visibrain study
released in March 2018
CNV First Quarter 2018
Activity
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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