Bay Street News

CNOVA NV: 2023 Fourth Quarter Activity & Full Year Financial Performance

CNOVA N.V.
Full Year Financial performance & Fourth Quarter 2023 activity
Update on Casino group situation

Stronger operational performance with an EBITDA improving by +56% in FY23 vs. 22

Successful model shift towards more services and an over performance of the Efficiency Plan

  • Services revenues growth (+2%) supported by a resilient Marketplace GMV, +6% advertising revenues and +69% B2B revenues driven by C-Logistics fulfillment services and Octopia marketplace solutions
  • Overperformance of the Efficiency Plan to recalibrate SG&A and CAPEX by the end of 2023 by €39m to reach €129m spending decrease vs. 21
  • EBITDA improved by +€29m in FY23 vs. 22, illustrating the result of Cnova’s turnaround towards a more profitable model focused on growing services revenues
  • Financial result improved by +€15m in FY23 vs. 22
  • Free cash-flows before change in working capital & taxes improved by +€69m in FY23 vs. 22
  • High level of commitment from Cnova’s teams to better serve its customers

 

AMSTERDAM – February 27, 2024, 18:00 CET Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova”) today announced its fourth quarter activity and full year unaudited financial results for 2023.

The year 2023 has been characterized by high inflation and a French e-commerce market declining by
-1.8%1 in FY23 vs. 22. Technical goods, which is one of Cnova’s core markets, have dropped by -9%1, underperforming the overall market.

In this context, Cnova accelerated its shift towards a more profitable model, as illustrated by the sharp increase in gross margin rate which stands at 30.3% in FY23 (+7.1pts vs. 22) and EBITDA reaching €81m in FY23, increasing by +56.2% (+€29m in FY23 vs. 22).

Part of this shift, the sanitization of its direct sales offer, and the challenging e-commerce context for goods, led to a net sales decrease by -24% like-for-like2 in FY23 and an overall GMV decrease by -14.0% like-for-like2 despite Cnova’s growth of services revenues (+1.7%) reaching €326m in FY23, both in B2C and B2B activities:

Cnova’s initiatives to recalibrate SG&A and CAPEX by the end of 2023 have overperformed by €39m the €90m Efficiency plan target which included the July 2022 guidance (€75m vs. 21) and the additional savings plan announced in April 2023 (€15m vs. 21):

EBITDA amounted to €81m (+€29m vs. 22) thanks to our focus on profitable products for the direct sales business, growing Advertising and resilient Marketplace revenues along with the Efficiency Plan. This enabled an increase in EBITDA by +56% year-on-year, with a doubling of EBITDA as a % of Net sales from 3.1% in FY22 to 6.8% in FY23.

EBITDA after rents almost tripled, to reach €50m in FY23.

Free cash-flows before change in working capital & taxes amounted to €-53m in FY23, showing a structural improvement of €69m vs. 22, mostly thanks to Cnova’s business model transformation towards high-margin services together with the Efficiency Plan initiated in 2022, leading to an improvement of EBITDA along with savings in capital expenditures and financial costs related to 4-installment payments.

Free cash-flows amounted to €-198m in FY23, decreasing by €86m vs. 22, mainly due to conjunctural change in working capital deterioration in relation to Casino group’s financial situation in 2023, the decrease in trade payables driven by both credit insurers guarantees reductions and earlier payments, and stronger constraints regarding receivables factoring programs.

Continuous development of Cnova’s ESG policy:

  

Thomas Métivier, Cnova’s CEO, commented:

“Over the past two years, we have turned around Cnova’s model towards a marketplace-oriented business, despite adverse market conditions. The sanitization of our direct sales, the growth of our services, notably on the Marketplace segment, Retail Media and B2B activities and the overperformance of our Efficiency Plan have strongly improved our profitability and operational cash, in line with targets published by Casino group in June 2023.

Keeping a strong attention on Cdiscount.com profitability, we are now focusing on our core commercial priorities: reinforcing our brand DNA on best value products and exclusive discounts, consumer loyalty, notably thanks to our Cdiscount à Volonté program, and consumer experience. Our investments in technology and Artificial Intelligence, notably Gen-AI, support the growth of our services and improve the value we offer to our customers in terms of product assortment, attractive pricing and promotion intensity.”

Financial highlights

Financial performance6
(€m)
  2022
Full year
2023
Full year
  Change vs. 22
    Reported L-f-L7
Total GMV (including VAT)   3,439.9 2,804.1   -18.5% -14.0%
Ecommerce platform   3,338.9 2,703.9   -19.0% -14.4%
o/w Direct sales   1,340.0 928.4   -30.7%
o/w Marketplace   1,421.0 1,392.0   -2.0%
Marketplace share   51.5% 60.0%   +8.5pts
o/w B2C services   212.1 149.8   -29.4% +17.6%
o/w Other revenues   365.8 233.7   -36.1% -14.1%
B2B activities   101.0 100.2   -0.8%
o/w Octopia B2B revenues   22.5 27.4   +21.9%
o/w Octopia Retail & others   74.2 54.9   -26.0%
o/w C-Logistics   4.3 17.8   x4
Total Net sales   1,700.2 1,196.7   -29.6% -24.0%
EBITDA8   52.0 81.2   +€29.2m
% of Net sales   3.1% 6.8%   +3.7pts
EBITDA8after rents   17.5 49.9   +€32.4m
Operating EBIT   -45.8 -15.0   +€30.8m
% of Net sales   -2.7% -1.3%   +1.4pts
Net Financial Result   -72.5 -57.7   +€14.9m
Net Profit from continuing operations   -128.0 -125.9   +€2.1m
Net Profit from continuing operations before change in DTA9related to tax losses (non-cash)   -128.0 -100.4   +€27.6m
Free cash-flows   FY22 FY23   Change
(€m)     vs. 22
EBITDA after rents   17.5 49.9   +32.4
(-) Capital expenditures   -81.7 -62.3   +19.3
(-) CB4X financial costs   -46.5 -24.7   +21.8
(+/-) Non-recurring items   -11.8 -16.1   -4.4
Free cash-flows before change in WC & taxes   -122.5 -53.3   +69.2
(+/-) Change in working capital   13.3 -142.4   -155.8
(-) Income taxes paid   -2.6 -2.5   +0.1
Free cash-flows10   -111.7 -198.2   -86.5
           
Net Financial Debt11   -372.5 -589.4   -216.9
NFD incl. consistent factoring presentation12   -394.0 -589.4   -195.4

Update on Casino group situation

On May 25th, 2023, the President of Paris Commercial Court opened conciliation proceedings to the benefit of Cdiscount, Maas, C-Shield, C-Technology, C-Logistics, Carya and CLR for an initial period of 4 months and appointed SELARL BCM, represented by Eric Bauland and SCP BTSG, represented by Marc Sénéchal. These conciliation proceedings are part of the more global restructuring proceedings initiated by Casino group, for the purpose of engaging in discussions with its creditors within a protective legal framework.

On July 28th2023, Casino group announced that is has, under the aegis of the conciliators and the Comité Interministériel de restructuration industrielle (CIRI), entered into an Agreement in Principle on July 27th 2023 with EP Equity Investment III s.à.r.l, Fimalac and Attestor (collectively named the “Consortium”) and creditors holding more than two-thirds of the Term Loan B, aiming at strengthening Casino group’s equity structure and restructuring its financial debt (the “Agreement in Principle”).

On September 18th2023, the conciliators filed an application with the Paris Commercial Court for an extension of the conciliation proceedings until October 25th 2023. On September 22nd 2023, Cnova and its Board of Directors announced the extension of the conciliation proceedings at Cdiscount level, including Cdiscount, Maas, C-Shield, C-Technology, C-Logistics, Carya and CLR.

On October 5th2023, Casino group announced that it has entered into a lock-up agreement, to which the parties (the Consortium, creditors holding 75% of the Term Loan B, main commercial banking groups and some of the creditors holding 92% of the RCF, as well as holders of notes issued by Quatrim) committed to support and take all steps and actions reasonably necessary to implement the group’s restructuring.

On October 25th2023, the Paris Commercial Court opened accelerated safeguard proceedings for the benefit of Casino, Guichard-Perrachon and certain of its subsidiaries13, for an initial period of two months, possibly renewable for a further two months up to a maximum total period of four months, in order to implement the restructuring plan of the Group in accordance with the terms of the lock-up agreement entered into on October 5th 2023 as part of conciliation proceedings.

On the same day, Cdiscount finalized the conclusion of a conciliation protocol with its core banking pool, under the aegis of the conciliators, SELARL BCM, represented by Eric Bauland and SCP BTSG, represented by Marc Sénéchal. The main provisions of the conciliation protocol revolve around the reprofiling of the state-guaranteed loans (prêts garantis par l’Etat) repayment and the maintenance of overdraft facilities.

Cdiscount applied for an acknowledgment (constatation) of this conciliation protocol from the President of the Paris Commercial Court.

On November 22nd2023, Casino group published a presentation on its website relating to the update of its 2023 forecasts for the France retail and e-commerce perimeter (EBITDA after lease payments and free-cash flows) and the update of its 2024-28 business plan.

On November 30th2023, Cnova announced that following the completion of the transaction pursuant to which Casino group acquired CBD Luxembourg Holding from GPA which increased Casino’s stake in Cnova, directly and through wholly owned subsidiaries, to 98.8%, Eleazar de Carvalho, Vice-Chairman and non-executive director of the Company, Guillaume Michaloux, non-executive director of the Company and Christophe Hidalgo, non-executive director of the Company, have resigned their directorships.

On December 11st2023, Casino group announced that the Paris Commercial Court has extended for a further two months (from December 25th 2023 to February 25th 2024) the accelerated safeguard procedures initiated on October 25th 2023 for Casino, Guichard-Perrachon and its six subsidiaries concerned13.

On December 21st, 2023, Casino group announced that the Consortium has updated its business plan to consider the updated 2023 forecasts for France and the announcement that it has entered into exclusive negotiations with Auchan Retail and Le Groupement Les Mousquetaires regarding the disposal of the majority of Casino hypermarkets and supermarkets to occur during the 2nd quarter 2024. The revised Business Plan of the Consortium presents an EBITDA of €126m in 2024 (vs. €316m in the previous Business Plan of the Consortium) and €920 in 2028 (vs. €949m in the previous Business Plan of the Consortium).

On December 21st, 2023, Casino group also announced that the judicial administrators have convened all relevant classes of affected parties, shareholders of Casino group and creditors to vote on the draft accelerated safeguard plan between December 21st, 2023 and January 11st, 2024. Casino group also announced on December 21st, 2023 that the draft accelerated safeguard plans, prepared by Casino with the assistance of the judicial administrators, has been made available on Casino group’s website.

On January 3rd, 2024, Casino group reminded the main conclusions of the report made available to shareholders by Sorgem Evaluation as independent expert. The report concluded that Casino group’s restructuring plan is fair to current shareholders.

On January 8th, 2024, Casino group announced that on January 5th, 2024, the European Commission issued a decision authorizing, under merger control, the Consortium to take control of the Group as part of the financial restructuring, it being specified that the Consortium’s acquisition vehicle will be controlled by EP Equity Investment III s.à.r.l., a company controlled by Mr. Daniel Křetínský.

On January 10th, 2024, Casino group announced that on January 9th 2024, the Autorité des Marchés Financiers (the “AMF”) granted a waiver of the obligation for the members of the Consortium and their investment vehicle (France Retail Holdings) to file a draft public offer for Casino’s shares.

On January 12th, 2024, Casino group’s judicial administrators have transmitted to Casino group the results of the vote of all classes of affected parties on the draft accelerated safeguard plans of Casino and certain of its subsidiaries14. Out of the 17 classes of affected parties of the relevant Casino subsidiaries, 16 classes approved the draft accelerated safeguard plans by the required majority (more than 2/3). Casino group pointed out that the rejection of the accelerated safeguard plan by one of the classes will have no impact on its implementation under the inter-class forced application mechanism.

On January 15th, 2024, Casino group announced that on January 11st, 2024, the French Ministry of the Economy issued its decision authorizing, under the control of foreign investments in France, the acquisition of control of the Group as part of its financial restructuring by the Consortium, it being specified that the Consortium’s acquisition vehicle (France Retail Holdings) will be controlled by EP Equity Investment III s.à.r.l, a company controlled by Mr. Daniel Křetínský.

On February 2nd, 2024, Casino group announced that the anti-trust authorities of Serbia, Northern Macedonia, Morocco and Kosovo issued decisions authorizing, under merger control, the acquisition of control of the Group as part of the financial restructuring by the Consortium.

Casino group also announced that on February 2nd, 2024, the European Commission issued a decision authorizing the Transaction under the Foreign subsidies Regulation. Furthermore, the Luxembourg Insurance Authority has authorized the change of indirect control of Casino RE (Casino group’s reinsurance subsidiary).

On February 16th, 2024, Casino group announced that, on February 15th, 2024, it filed petitions before the Bankruptcy Court of the Southern District of New York for the opening of Chapter 15 proceedings under the U.S. Bankruptcy Code. The purpose is to obtain recognition in the United States of the accelerated safeguard proceedings at the level of Casino and six of its subsidiaries14.

On February 26th, 2024, Casino announced that, by judgments dated 26 February 2024, the Paris Commercial Court, after having acknowledged that all conditions precedent had been satisfied, approved the accelerated safeguard plans for Casino (the “Company”) and some of its subsidiaries14. In the absence of a suspensory appeal, it is anticipated that all transactions provided for in the financial restructuring will be completed on 27 March 2024, subject to approval by the Autorité des marchés financiers of the prospectus relating to the various securities issuances provided for in Casino’s accelerated safeguard plan.

Operational highlights

Full Year 2023 operational highlights illustrate the successful shift from direct sales towards Cnova’s Marketplace platform with Marketplace GMV share increasing by +8.5pts, growing Advertising services revenues increasing by +6.0% along with a strong and steady NPS standing at 54 in FY23, amongst the best satisfaction rates on the market. Services revenues now represent €326m reaching 27% of net sales (+8.4 points vs. last year).

Facing challenging market conditions, overall GMV decreased by -14.0% like-for-like15 in FY23 confirming Cnova’s strategic choice to accelerate its services revenues with the sanitization of its direct sales offer and the development of its Marketplace, Advertising services and B2B activities. In this context of strong inflation headwinds, Cnova has launched dedicated offers and discounts to take part in the fight against inflation.

Furthermore, FY22 benefited from a stronger comparison base than FY23, with the drop in consumption index which occurred in April and May 2022 and GMV boosted by a higher 4X payment take rate in FY22.

Business KPIs   2022
Full year
2023
Full year
  Change
vs. 22
Marketplace16   212.8 198.6   -6.7%
Advertising17 71.2 75.5   +6.0%
B2C18 14.5 14.4   -0.8%
B2B19 22.3 37.7   +68.9%
Services revenues   320.9 326.2   +1.7%
           
Services revenues share in net sales   18.9% 27.3%   +8.4pts
Marketplace GMV share   51.5% 60.0%   +8.5pts

4thquarter highlights

GMV 4Q23 vs. 22
Total like-for-like15 GMV evolution -12.8%
Net sales like-for-like15 evolution -21.7%
Marketplace GMV evolution -2.5%
Marketplace GMV share evolution +6.4pts
Travel GMV growth +8.8%

In the 4th quarter 2023, Cnova overall GMV decreased by -12.8% like-for-like20, with positive dynamics compared to previous quarters (+2.7pts vs. 1Q23, +0.9pts vs. 2Q23 and +1.3pts vs. 3Q23). This year-on-year evolution was driven by:

Clients 4Q23
Active clients over the last 12 months (m) 7.5
CDAV subscriber base22 (m) 1.6
CDAV GMV share 38.9%

The loyalty program Cdiscount à Volonté (CDAV) encompasses 1.6m members at end of December 2023.

Cdiscount’s loyalty program represented 38.9% of total GMV in the 4th quarter 2023, stable compared to last year. Over the course of 2023, Cnova decided to strengthen its strategic focus on CDAV members in order to reward their loyalty, with actions such as dedicated discounts, loyalty pots or reimbursement claims. This strategic emphasis is illustrated by a growing number of members benefiting from loyalty actions (+29.2% vs. 22) and an increasing value of loyalty pots (+66.3% vs. 22).

Marketplace KPIs 4Q23 vs. 22
Marketplace GMV share 60.5% +6.4pts
Advertising services to Marketplace sellers (€m) 12.8 +20.3%
Total Fulfilment GMV share 53.6% +2.0pts
o/w Cdiscount Express Seller GMV share 13.5% -1.6pts
o/w Fulfilment by Cdiscount GMV share 40.1% +3.6pts

Despite a difficult market context and decreasing GMV by -2.5%, Marketplace underlying KPIs continue to be well oriented with Advertising services provided to Marketplace sellers growing by +20.3% in 4Q23 vs. 22 compared to +27.0% on a yearly basis and the share of products eligible to free express delivery increasing by +2.0pts in 4Q23 vs. 22, reaching 53.6% in 4Q23.

Full year 2023 financial performance

Cnova N.V.23
(€m)
Full year Change
2022 2023 vs. 2022
GMV (including VAT) 3,439.9 2,804.1 -18.5%
Net sales 1,700.2 1,196.7 -29.6%
Gross margin 393.8 362.1 -8.0%
As a % of Net sales 23.2% 30.3% +7.1pts
As a % of GMV 13.7% 15.5% +1.8pts
SG&A (excl. D&A) -341.8 -280.9 +€60.9m
As a % of Net sales -20.1% -23.5% -3.4pts
As a % of GMV -11.9% -12.0% -0.1pts
EBITDA 52.0 81.2 +€29.2m
As a % of Net sales 3.1% 6.8% +3.7pts
As a % of GMV 1.8% 3.5% +1.7pts
Depreciation & Amortization -97.7 -96.2 +€1.5m
Operating EBIT -45.8 -15.0 +€30.8m
Other non-current operating income / (expenses) -4.6 -24.7 -€20.1m
Net financial income / (expenses) -72.5 -57.7 +€14.9m
Profit before tax -122.9 -97.4 +€25.5m
Income taxes -5.1 -28.6 -€23.5m
Net loss -125.3 -129.7 -€4.4m
Net loss from continuing operations -128.0 -125.9 +€2.1m
Net loss from continuing operations before change in DTA24 -128.0 -100.4 +€27.6m

Net sales amounted to €1,197m in FY23, a -29.6% reported decrease compared to 2022 and a -24.0% decrease on a like-for-like25 basis. Net sales evolution has been impacted by business shift towards commission-based activities, as Marketplace GMV share grew by +8.5pts vs. 22 up to 60.0% in FY23 and B2C services26 revenues performing very well by +21.6% vs. 22, mostly driven by growing Travel revenues (+20.2% vs. 22). Octopia B2B revenues increased by +21.9% vs. 22, with Fulfilment-as-a-Service revenues growing by +35.7%, mainly with an increase in the number of parcels shipped for Fulfilment-as-a-Service clients. C-Logistics B2B revenues have increased by x4 vs. 22, at €15m in FY23, driven by the launch of its third party-logistic solution for a European sportswear company and an increasing number of shipped parcels for external clients (x4 vs. 22). Advertising services revenues have increased by +6.0% vs. 22, amounting to €75m in Full year 2023.

Gross margin was €362m in FY23, representing 30.3% of net sales, increasing by +7.1pts vs. 22 and by +12.5pts compared to the pre-pandemic level (Full Year 2019). The increase in gross margin rate illustrates the results of Cnova’s strategic plan, with an increase in Marketplace GMV share (+8.5pts vs. 22). Advertising services also contributed to this improvement, with Advertising revenues growing by +6.0% vs. 22 (x2 vs. 19), notably thanks to innovative offers launched through Cdiscount Ads Retail Solution (CARS). Over the 1st half of 2023, Cnova pursued the rationalization of its direct sales assortment with destocking initiatives focused on SKUs with the most unfavorable inventory turnover. Following this inventory optimization and reduction, Cnova has focused on extending its inventories with profitable SKUs, while reducing its stock coverage in terms of inventory days of supply. These initiatives supported Cnova strategic choices aiming at improving profitability.

SG&A (excluding D&A) costs amounted to €-281m in FY23, representing -23.5% of net sales, decreasing by -3.4pts vs. 22. During the 2nd quarter 2022, an Efficiency plan to recalibrate SG&A structure to current level of activity was launched.

Consequently, EBITDA amounted to €81m, improving by €29m compared to last year, representing 6.8% of net sales (+3.7pts vs. 22). EBITDA after rents amounted to €50m in FY23, improving by +€32m vs. 22, benefiting from €3m additional savings on rents from voluntary decrease in warehouse capacities.

Depreciation & Amortization (D&A) amounted to €-96m in FY23. In accordance with IFRS 16, D&A include the amortization of the right-of-use asset which represents lessees’ right to exploit leased elements over the duration of a lease agreement, which were impacted by the rationalization of warehousing capacities to adapt to business levels, with full impacts expected in 2024.

Operating EBIT amounted to €-15m, improving by €31m vs. 22, with a slightly decreasing Depreciation & Amortization compared to last year.

Other non-recurring income / (expenses) amounted to €-25m in FY23, decreasing by €-20m compared to last year. FY22 was impacted by costs related to the Efficiency plan and asset impairments partly offset by a positive gain on Floa assets disposal for €14m. In comparison, FY23 was impacted by restructuring costs, including conciliation costs, transformation costs and non-recurring costs related to warehouses optimization, along with impairments and disposal of assets, for a total amount of €-17m and change in scope for €-5m.

Net financial expenses amounted to €-58m, improving by €15m compared to last year. This improvement was mostly driven by the decrease in GMV generated through 4-installment payment (“4X” or “CB4X”) from 46.5% in the 1st semester 2022 to 43.9% in the 1st semester 2023, therefore reducing the risk profiles of those clients, leading to less financial costs related to the transfer of 4X receivables to Floa Bank. The increase in net financial debt and associated interests partly offset this positive impact.

Net loss amounted to €-130m, deteriorating by €-4m compared to last year. Adjusted for change in deferred tax assets related to tax losses (non-cash items at C-logistics level), net loss amounts to €-104m, an improvement of €21m compared to last year mainly driven by positive impacts from EBITDA and Net financial expenses, partly offset by negative impact from non-recurring items.

Free cash-flows   FY22 FY23   Change
(€m)     vs. 22
EBITDA after rents   17.5 49.9   +32.4
(-) Capital expenditures   -81.7 -62.3   +19.3
(-) CB4X financial costs   -46.5 -24.7   +21.8
(+/-) Non-recurring items   -11.8 -16.1   -4.4
Free cash-flows before change in WC & taxes   -122.5 -53.3   +69.2
(+/-) Change in working capital   13.3 -142.4   -155.8
(-) Income taxes paid   -2.6 -2.5   +0.1
Free cash-flows28   -111.7 -198.2   -86.5
           
Net Financial Debt29   -372.5 -589.4   -216.9
NFD incl. consistent factoring presentation30   -394.0 -589.4   -195.4

Free cash-flows before change in working capital & taxes amounted to €-53m in FY23, showing a structural cash improvement of €69m vs. 22, mostly thanks to Cnova’s business model turnaround as illustrated by:

Cash non-recurring items amounted to €-16m in FY23 (€-4m vs. 22), mostly related to warehouses one-off exit costs and 2023 context (especially conciliation proceedings).

Free cash-flows amounted to €-198m in FY23, decreasing by €86m vs. 22, mostly due to conjunctural change in working capital for €-142m (conciliation proceedings), decreasing by €156m vs. 22 and mostly related to:

In addition, 2022 change in working capital benefited from the sale of Géant inventories to Casino group and the disposal of Floa Bank assets to BNP Paribas.

Business Highlights

Product GMV31shows a sequential improvement over the year, decreasing by -12.9% in 4Q23 vs. 22 (+5.8pts vs. 1Q23, +3.3pts vs. 2Q23 and +3.4pts vs. 3Q23):

A record high Marketplace GMV share with positive trends compared to pre-pandemic level:

Direct sales GMV gradually improving over the year, decreasing by -25.1% in 4Q23 vs. 22 (+7.5pts vs. 1Q23, +5.7pts vs. 2Q23 and +9.9pts vs. 3Q23).

In 2023, Cnova has pursued the rationalization of its direct sales assortment, taking actions towards inventories optimization enabling to adjust to business levels:

B2C Services GMV33 amounted to €150m in FY23, reaching a solid growth of +17.6% vs. 22.

Cdiscount Voyages (travel) GMV increased by +11.7% vs. 22, with:

Strong customer satisfaction measured by the NPS standing at 54 in FY23, steady compared to FY22, rewarding our focus on customers despite the financial constraints.

In the 4th quarter 2023, NPS stood at 56, improving compared to the 4th quarter 2022, during peak season, for both Direct sales and Marketplace.

Cnova has pursued the rationalization and simplification of its sales devices (mobile, desktop and apps), enabling to boost customer experience and improving profitability, with increased monetization performance and reduced costs.

In a context of inflation and declining purchasing power, Cnova keeps leveraging on payment facilities:

Artificial intelligence-powered algorithms were implemented all along the customer journey over the past months, significantly enhancing the relevance of the Cdiscount.com search engine (+3.5pts in the search engine click rate in the 4th quarter 2023 compared to the 4th quarter 2022).

Through Generative Artificial Intelligence (“GenAI”) initiatives, Cnova aims at generating more value, enrich customer experience and improve processes.

To improve its product catalog and marketability, Cnova has internally developed and deployed three use cases since May 2023:

Cnova is also aiming to enhance process efficiency thanks to GenAI, with more than 700 employees already using Artificial Intelligence:

All these initiatives, combined with the numerous external communications related to GenAI enabled Isabelle Serot, Cnova’s Head of Data and Artificial Intelligence, to be rewarded by LSA with “Tech personality of the year”.

Strong growth of Advertising services supported by Retail Media revenues:

Octopia B2B business shows positive dynamics:

C-Logistics B2B business pursues its growth. C-Logistics B2B revenues have grown by x4 compared to FY22, mostly related to the growing number of shipped parcels for external clients (x4 vs. 22).

Since the successful launch of its third-party logistic solution for a European sportswear company in February 2023, C-Logistics has fulfilled 709k parcels for its new client.

C-Logistics has undertaken actions to rationalize its warehouses capacity to adapt to business level: since January 2023, capacities have decreased by 136k sqm (-25%).

Environmental, social and societal stakes such as climate, business ethics and human capital are at the heart of Cnova’s B2C and B2B activities. Major 2023 actions and results are listed below.

Regarding Cnova’s actions to reduce its impact on climate:

Regarding Cnova’s actions to ensure ethical practices across its value chain:

Regarding Cnova’s actions to develop human capital:

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About Cnova N.V.

Cnova N.V., the French ecommerce leader, serves 7.5 million active customers via its state-of-the-art website, Cdiscount. Cnova N.V.’s product offering provides its B2C clients with a wide variety of very competitively priced goods, fast and customer-convenient delivery options, practical and innovative payment solutions as well as travel and entertainment services. Cnova N.V. also serves B2B clients internationally through Octopia (Marketplace-as-a-Service solutions), Cdiscount Advertising (advertising services for sellers and brands) and C-Logistics (end-to-end logistic ecommerce solution). Cnova N.V. is part of Casino group, a global diversified retailer. Cnova N.V.’s news releases are available at www.cnova.com. Information available on, or accessible through, the sites referenced above is not part of this press release.

This press release contains regulated information (gereglementeerde informatie) within the meaning of the Dutch Financial Supervision Act (Wet op het financieel toezicht) which must be made publicly available pursuant to Dutch and French law. This press release is intended for information purposes only.

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Appendices

Cnova N.V. Full Year 2023 Consolidated Financial Statements (unaudited)

Consolidated Income Statement*   Full year
2022
Full year
2023
(€m)  
Net sales   1,652.5 1,196.7
Cost of sales   -1,262.3 -834.5
Gross margin   390.2 362.1
% of net sales   23.6% 30.3%
SG&A(1)   -434.4 -377.1
% of net sales   -26.3% -31.5%
Fulfilment costs   -150.8 -126.3
Marketing costs   -87.0 -69.3
Technology & Content costs   -152.8 -138.6
General & Administrative costs   -43.8 -42.9
Operating EBIT(2)   -44.2 -15.0
% of net sales   -2.7% -1.3%
Other expenses   -4.5 -24.7
Operating profit / (loss)   -48.7 -39.7
Net financial income / (expense)   -72.2 -57.7
Profit / (loss) before tax   -120.9 -97.4
Income tax gain / (expense)   -5.2 -28.6
Net profit / (loss) from continued operations   -126.1 -125.9
Net profit /(loss) from discontinued operations(3)   0.8 -3.7
Net profit/(loss) for the period   -125.3 -129.7
% of net sales   -7.6% -10.8%
Attributable to Cnova equity holders(4)   -125.6 -125.6
Attributable to non-controlling interests(4)   0.3 -4.1
Adjusted EPS (€)(5)   -0.36 -0.36

*re-presented to consider CChezVous and Carya financials reclassified in discontinued activities
1)   SG&A: selling, general and administrative expenses
2)   Operating EBIT: operating profit/(loss) before other expenses (strategic and restructuring expenses, litigation expenses and impairment and disposal of assets expenses)
3)   In accordance with IFRS 5 (Non-current Assets Held for Sale and Discontinued Operations), net result generated by Haltae, Carya and CChezVous are reported under “Net profit/(loss) from discontinued operations” for full years ended December 31, 2023 and December 31, 2022
4)   Including discontinued
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
2023
End December
(€m)
ASSETS      
Cash and cash equivalents   13.7 11.0
Trade receivables, net   83.0 92.7
Inventories, net   145.9 100.5
Current income tax assets   2.9 1.8
Other current assets, net   319.2 149.8
Total current assets   564.6 355.9
Other non-current assets, net   12.6 7.1
Deferred tax assets   42.2 15.0
Right of use, net   115.8 71.4
Property and equipment, net   19.1 16.4
Intangible assets, net   233.2 208.4
Goodwill   60.7 60.7
Total non-current assets   483.7 379.1
       
Assets held for sale   0.0 0.0
       
TOTAL ASSETS   1,048.3 735.0
EQUITY AND LIABILITIES      
Current provisions   9.1 4.5
Trade payables   428.9 256.8
Current financial debt   127.9 183.6
Current lease liabilities   35.8 31.0
Current tax and social liabilities   67.0 55.3
Other current liabilities   210.5 206.2
Total current liabilities   879.2 737.3
Non-current provisions   6.0 6.8
Non-current financial debt   414.5 416.9
Non-current lease liabilities   105.3 64.4
Other non-current liabilities   18.1 16.1
Deferred tax liabilities   1.3 0.1
Total non-current liabilities   545.2 504.3
Share capital   17.3 17.3
Reserves, retained earnings & additional paid-in capital   -465.2 -591.6
Equity attributable to equity holders of Cnova   -448.0 -574.4
Non-controlling interests   71.8 67.8
Total equity   -376.1 -506.6
       
TOTAL EQUITY AND LIABILITIES   1,048.3 735.0
       
Consolidated Cash Flow Statement   Full Year
2022
Full Year
2023
(€m)  
Net profit (loss) attributable to equity holders of the Parent           -125.8 -121.9
Net profit (loss) attributable to non-controlling interests   -0.3 -4.1
Net profit (loss) from continuing operations   -126.1 -125.9
Depreciation and amortization expense   97.0 96.2
(Gains) losses on disposal of non-current assets and impairment of assets   -13.4 15.8
Other non-cash items   3.4 -1.1
Financial expense, net   72.2 57.7
Current and deferred tax expenses   5.2 28.6
Income tax paid   -2.5 -2.5
Change in operating working capital   11.0 -147.3
Inventories of products   156.7 45.2
Trade payables   -201.5 -170.0
Trade receivables   77.8 -19.1
Others   -22.0 -3.4
Net cash from / (used in) continuing operating activities   46.9 -78.6
Net cash from / (used in) discontinued operating activities   8.6 -3.7
Purchase of property, equipment & intangible assets   -80.9 -62.2
Purchase of non-current financial assets   -0.2 -0.1
Proceeds from disposal of P&E, intangible assets & non-current fin. assets   22.6 3.1
Disposal/(Acquisition) of subsidiaries, net of cash acquired   58.2 7.1
Payments of loans granted (including to related parties)   -153.4 155.2
Net cash from / (used in) continuing investing activities   -155.4 103.1
Net cash from / (used in) discontinued investing activities   16.0 1.7
Dividends paid to the non-controlling interests   0.0
Proceeds from loan received   45.4
Additions to financial debt   170.0 7.0
Repayments of financial debt   -58.4 -0.2
Repayments of lease liability   -27.8 -26.5
Interest paid on lease liability   -7.8 -7.1
Interest paid, net   -57.0 -43.7
Net cash from / (used in) continuing financing activities   18.9 -25.2
Net cash from / (used in) discontinued financing activities   -6.6 -1.1
Effect of changes in foreign currency translation adjustments   0.0 0.0
Change in cash and cash equivalents from continuing operations   -86.4 -0.7
Change in cash and cash equivalents from discontinued operations   15.0 -3.1
Cash and cash equivalents, net, at period begin   17.1 -54.3
       
Cash and cash equivalents, net, at period end   -54.3 -58.1

1 Source: Fevad for the goods ecommerce market
2 Like-for-like figures exclude CChezvous, Carya, Géant and Cdiscount Energy
3 Including Marketplace commissions after price discounts, subscription fee and revenues from fulfilment services to sellers
4 Including both revenues from marketing services to suppliers and sellers
5 Excluding Cdiscount Energy
6 Figures have been restated to consider CChezVous (2022) and Carya (2023) disposal (discontinued operations)
7 Like-for-like figures exclude CChezVous, Carya, Géant and Cdiscount Energy
8 EBITDA: operating profit/(loss) from ordinary activities (EBIT) adjusted for operating depreciation & amortization
9 Deferred Tax Assets
10 Free cash-flows from continuing operations before financial interest
11 Excluding commitments to buy back non-controlling interests
12 For consistency purposes with 2023, factored receivables to La Banque Postale have been classified in 2022 Net Financial Debt. This also excludes commitments to buy back non-controlling interests

13 Casino Finance, Distribution Casino France, Casino Participations France, Quatrim, Ségisor, and Monoprix SAS
14 Casino Finance, Distribution Casino France, Casino Participations France, Quatrim, Ségisor, and Monoprix SAS
15 Like-for-like figures exclude CChezvous, Carya, Géant and Cdiscount Energy
16 Including Marketplace commissions after price discounts, subscription fee and revenues from fulfilment services to sellers
17 Including both revenues from marketing services to suppliers and sellers
18 Including Travel, Mobile, CUP cards commissions, warranty services and others
19 Including Fulfilment-as-a-Service, Merchants-as-a-Service and Marketplace-as-a-Service (Octopia) and C-Logistics B2B activities
20 Like-for-like figures exclude CChezvous, Carya, Géant and Cdiscount Energy
21 Excluding Cdiscount Energy
22 Subscriber base as of December 31st, 2023
23 Figures have been restated to consider CChezVous (2022) and Carya (2023) disposal (discontinued operations)
24 Deferred Tax Assets
25 Like-for-like figures exclude CChezvous, Carya, Géant and Cdiscount Energy
26 Excluding Cdiscount Energy
27 Acquisition marketing costs (excluding VAT) divided by Product GMV (excluding VAT)
28 Free cash-flows from continuing operations before financial interest
29 Excluding commitments to buy back non-controlling interests
30 For consistency purposes with 2023, factored receivables to La Banque Postale have been classified in 2022 Net Financial Debt. This also excludes commitments to buy back non-controlling interests
31 Product GMV is equal to Direct sales GMV and Marketplace GMV
32 Black Friday Weekend from November 23rd 2023 to November 27th 2023
33 Excluding Cdiscount Energy

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