CNOVA - First Quarter 2021 Activity

Rhea-AI Summary

Cnova N.V. reported a strong performance in Q1 2021, with Gross Merchandise Volume (GMV) increasing by 12% to €1,006 million. Marketplace growth was a key driver, rising 34% and now comprising 46% of total GMV. Marketplace revenues grew 43% to €197 million over the last twelve months. Digital marketing revenues also surged, climbing 43%. The company's Octopia solution saw an impressive 86% growth, now connected to 518 websites. Cnova served over 10.5 million active customers, reflecting a 15% increase from the previous year.

Positive

• Q1 2021 GMV increased by 12% to €1,006 million.
• Marketplace GMV share rose to 46%, +7pts year-over-year.
• Marketplace revenues grew 43% to €197 million LTM.
• Digital marketing revenues increased by 43%.
• Octopia GMV surged 86%, now serving 518 websites.

Negative

• None.

CNOVA N.V.
First Quarter 2021 Activity

Marketplace and digital marketing expansion driving growth and profitability

High +34% growth of the marketplace reaching 46% of GMV (+7pts) Acceleration of marketplace revenues: +43% in Q1 at €197m on a LTM basis Strong expansion of digital marketing revenues (+43%) Acceleration of Octopia: +86% GMV

AMSTERDAM – May 6, 2021, 07:45 CET Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”) today announced its first quarter 2021 activity.

1^st quarter 2021 Highlights

During the 1^st quarter 2021, Cnova has strengthened its economic model.

The marketplace, now representing 46% of total GMV (+7pts), was at the heart of Cnova profitable growth, with +34% in the 1^st quarter 2021 vs. last year. Marketplace revenues reached €197m over the LTM, growing +38% vs. the previous LTM period, and accelerating in the first quarter with a +43% increase, driven by the growth of digital marketing revenues from sellers.

Digital marketing revenues have increased by +43% driven by the development of our in-house marketing digital platform Cdiscount Advertising.

Octopia, Cnova turnkey marketplace solution for EMEA retailers and e-merchants, grew by +86% and is now connected to 518 websites in Europe. Octopia signed a major EMEA client, a local retail leader with over €1bn revenues, and launched its first marketplace for Géant in April 2021.

GMV (Gross Merchandise Volume) increased by +12% to reach €1,006m. As of March 31, 2021, Cdiscount website served more than 10.5m active customers over the last twelve months (LTM) at the end of the 1st quarter (+15%). Growth has been dynamic in higher margin categories towards Home, DIY & Leisure (+29% in the 1^st quarter).

Emmanuel Grenier, Cnova CEO, commented:

“The 1^st quarter of 2021 confirmed the good dynamic recorded in 2020 and its relevant positioning, with strong GMV growth and improved profitability in a fast-evolving environment in Europe marked by strong and sustainable underlying trends: more digitalized sales and more home delivery.
The solid performance of our B2C activity is driven by a strong marketplace development and accelerated growth of Home, DIY and Leisure categories. We have offered enhanced customer experience through a best-in-class delivery service and a politic of “yes to the customer”, driving to a record high NPS⁽¹⁾.
Our B2B activity is developing very well thanks to the dynamic of digital marketing and Octopia. More and more sellers and suppliers are leveraging on our digital marketing platform to accelerate their sales. The ramp up of Octopia, our turnkey marketplace solution, is accelerating with more than 500 websites connected throughout Europe and a first major client launched with our full solution.”

First Quarter 2021 Key Figures

Cnova N.V.	First quarter (2)		Change
	2021	2020
Key operational metrics
Traffic (millions visits)	294.0	247.2	+18.9 %
Orders (3) (millions)	7.4	6.3	+16.9 %
o/w Marketplace	5.0	3.9	+30.3 %
Items solde (millions)	12.6	11.5	+9.7 %
o/w Marketplace	7.4	5.9	+25.0 %
Key financial figures
Total GMV (€m)	1,006.3	899.8	+11.8 %
Organic GMV (€m) (4)	997.0	882.2	+13.0 %
o/w Direct sales	454.8	454.8	+0.0 %
o/w Marketplace	380.5	283.4	+34.3 %
Marketplace GMV share	45.6%	38.4%	+7.2 pts
Total Net Sales (€m)	517.9	493.1	+5.0 %
o/wo Marketplace revenues	48.7	34.1	+42.9 %

First Quarter 2021 Highlights

GMV	1Q21
Total Organic Growth	+13.0%
Marketplace Growth	+34.3%
Octopia Growth	+86.3%

Organic GMV posted a strong +13.0% increase in the 1^st quarter 2021.

GMV growth was driven by:

• the marketplace, with a +10.9 points contribution to growth in the 1^st quarter 2021 vs. last year, boosted by a strategic evolution initiated in the 2^nd quarter 2020 towards Home, DIY & Leisure, bringing more repurchase, loyalty and profitability thanks to higher margins.
• Octopia GMV almost doubled (+86.3%) thanks to our Products as a Service offer and commercial acceleration in Europe, bringing +1.2 pt of growth to Cnova.

Marketplace	1Q21
Marketplace total GMV share	45.6%
Marketplace GMV share evolution	+7.2 pts
Fulfilment marketplace GMV share	+3.5 pts
Marketplace revenues growth	+42.9%

Marketplace was the driving force of GMV in the 1^st quarter 2021, with a +34.3% GMV growth vs. N-1.

It led to an increased marketplace GMV share, reaching 45.6% in the 1^st quarter 2021 (+7.2 pts). The Marketplace benefited from the strong growth of Fulfilment by Cdiscount (+42.5% vs. N-1) whose marketplace GMV share grew by +3.5 points.

Net sales	1Q21
Organic growth	+6.7%

Net sales amounted to 517.9 million euros, i.e. a +5.0% increase vs 1^st quarter 2020. The increase is mainly explained by a +42.9% growth of Marketplace revenues and +44.7% of revenue for Cdiscount Pro.

Traffic	1Q21
Traffic growth5	+18.9%

Regarding traffic, Cdiscount ranks #2 in France on average over the quarter with 22m Unique Monthly Visitors. It represents a total of almost 300 million visits during the 1^st quarter 2021 (+18.9%).

Business Highlights

Marketplace of products growing double-digit, driving up revenues and profitability

• The marketplace gained +7.2 points of GMV share to reach 45.6% in the 1^st quarter 2021, thanks to a strong +34.3% GMV growth.
• In addition to volume growth, revenue generation grew even faster: +42.9% in the 1^st quarter, reaching €48.7m.
• Marketplace revenues reached €197.1m over the last twelve months, growing +38% vs. last year and accelerating in the first quarter with a +43% increase.
• Expansion of express delivery eligible marketplace SKUs is a key driver of growth, customer satisfaction and contributes to the development of our loyalty program, Cdiscount à Volonté (CDAV). It is also determinant to support the product mix re-orientation towards recurring products categories.
  • Fulfilment by Cdiscount kept growing at a fast pace, with a +42.5% GMV increase reaching €120.5m
  • Cdiscount Express Seller, launched in 2019 for sellers able to offer express delivery to CDAV customers, extended its offering by +18.0% compared to the previous quarter, to reach 1.4 million eligible SKUs.
    
    

Product mix evolution towards recurring product categories building strong loyalty as well as increased profitability

• Cnova initiated at the start of last year a strategic product mix evolution towards Home, DIY & Leisure. These categories bring higher recurring purchase rates as well as higher margins. Consequently, the product mix evolution aims at generating more loyalty, repurchases and profitability. These categories experienced a strong +28.8% growth in the 1^st quarter.
  
  

B2C services showed solid performance despite Covid-19 negative impact on Travel

• Cdiscount Energie (home energy) GMV grew by +69.9% in the 1^st quarter 2021 vs. N-1, supported by a strong subscriber growth of +78.9% compared to last year.
• Cdiscount Mobile (cell phone plans) activity performed well during the 1^st quarter 2021 with +33.1% GMV vs. N-1.

Enhanced customer experience and record high NPS

• Cnova achieved a solid +2.5 points NPS improvement this quarter compared to the same period last year, through intensified efforts to improve customer experience before, during and after the sale.
• Cnova reduced delivery time by 0.6 day compared to last year, thanks to the increase of the express delivery share. This was supported by the development of marketplace express delivery options through Fulfilment by Cdiscount and Cdiscount Express Seller.
• Cnova also carried on its “say yes to the customer” policy, with now 80% positive and immediate answers to Cdiscount à Volonté customers claims and proactive preventive actions for every abnormal event happening during the customer journey. The goal is to reach 100% by the end of the year.
  
  

Dynamic digital marketing powered by Cdiscount Ads Retail Solution

• Digital marketing revenues increased by +42.9% in the 1^st quarter compared to last year, reinforcing Cnova’s most profitable activity.
• It was supported by Cnova’s proprietary solution launched in the 2^nd quarter 2020, Cdiscount Ads Retail Solution (CARS), a 100% self-care advertising platform enabling both sellers and suppliers to promote their products and brands. Cnova also kept adding complementary digital marketing features to reinforce its offer, such as the launch of Google Shopping campaign management for suppliers and marketplace sellers.
  • Creation of a new brand, Cdiscount Advertising, encapsulating all in-house digital marketing services, for brands and marketplace sellers.
    
    

Acceleration of Octopia, the turnkey marketplace solution for EMEA retailers and e-merchants

• Cnova’s turnkey marketplace solution aims at offering 4 modular and ready-to-operate marketplace services to international retailers and e-merchants:
  • Products as a Service to bring products to small/medium websites
  • Merchants as a Service to bring sellers to existing marketplaces
  • Marketplace tech solution to transform e-commerce websites into marketplaces thanks to our technology
  • Fulfilment as a Service to bring multi-marketplace fulfilment solutions including cross-border shipping and warehouse management solution.
• Octopia is the only player on the market to fully handle these 4 solutions, at a large scale, thus offering a unique value proposition to address a huge EMEA e-commerce market.
• Octopia GMV experienced a very strong +86.3% growth, bringing +1.2 pt of growth to Cnova.
• This international platform now comprises 518 connected websites enabling delivery in 27 countries.

C Chez Vous and C-Logistics commercial acceleration, aiming to become leading transportation & logistics service providers in Europe

• C Chez Vous aims at becoming the French leader in delivery of heavy and bulky products, reaching record high NPS of 75 for its first months of activity.
• C-Logistics aims at being a leading e-commerce third-party logistics player with a first client signed in 1^st quarter 2021.

Acceleration of 2^nd-hand offer to help Cnova’s clients consume more sustainably

• C2C platform launched in December 2020 with 2.6m visits on March 31^st, 2021.
• Launch of a self-repair service (through partnership with Spareka), providing a breakdown diagnostic tool and tutorials as well as more than 8 million spare parts.

Cnova reduces its carbon footprint in logistics

• 85% of total parcels shipped are packed without any empty space.
• Option proposed to customers not to wrap their parcels to save packaging resulting in nearly 200k packages saved since its launch in October 2020.

  

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About Cnova N.V.

Cnova N.V., the French ecommerce leader, serves 10.5 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

Media contact: directiondelacommunication@cdiscount.com Tel: +33 6 18 33 17 86

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1 Net Promoter Score
2 All figures are unaudited
3 Total placed orders before cancellation due to fraud detection and/or customer non-payment
4 GMV (gross merchandise volume) is defined as: product sales (all taxes included) + other revenue + marketplace business volumes (calculated based on approved and sent orders) + GMV services
5 According to the latest Médiamétrie studies

Attachment

• Cnova NV PR Q1 2021

FAQ

What were Cnova's Q1 2021 earnings?

Cnova reported Q1 2021 GMV of €1,006 million, with a year-over-year increase of 12%.

What is the marketplace growth percentage for Cnova in Q1 2021?

Cnova’s marketplace grew by 34% in Q1 2021.

How much did Cnova's digital marketing revenues increase in Q1 2021?

Digital marketing revenues increased by 43% in Q1 2021.

How many active customers does Cnova serve as of Q1 2021?

Cnova serves over 10.5 million active customers as of Q1 2021.

What was the growth rate of Octopia in Q1 2021?

Octopia experienced an impressive growth rate of 86% in Q1 2021.