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Cnova N.V.: 2019 Second Quarter Activity & First Half Financial Results

        
CNOVA N.V.
2019 Second Quarter Activity & First Half Financial Results

AMSTERDAM, July 24, 2019, 07:45 CEST Cnova N.V. (Euronext Paris: CNV; ISIN: NL0010949392) (“Cnova” or the “Company”) today announced its second quarter activity and first half unaudited financial results for 2019. 

  • GMV: 2Q19 +13% organic1 growth, to reach €847mn
    • Driven by marketplace (+4.4 pts) and B2C services (+4.8 pts)
  • Accelerating marketplace: +3.5 pts GMV share2 in 2Q19, at 40.1%
    • Fulfillment by Cdiscount: +57% GMV growth, 27% marketplace GMV share (+7.4 pts)
    • B2B marketplace services revenues almost doubled
  • B2C services rapidly growing, along with extension of the offer
    • Cdiscount Voyages: +73% 2Q19 GMV vs 1Q19, launch of a holiday package marketplace
    • Cdiscount Energie: x2.1 2Q19 GMV y-o-y, x2.3 subscribers
    • Launch of Cdiscount Santé: health insurance and prescription eyeglasses
  • CDAV: 2mn members benefiting from 1mn eligible products
    • 2Q19: +3.1 pts GMV share to reach 37.9%  
    • More than 1mn SKUs available, x3 y-o-y
  • International expansion plan well on track
    • 25 countries now covered (+5 vs 1Q19)
    • 34 websites directly connected (+23 vs 1Q19)
  • EBITDA: +€12mn increase in 1H19 to reach €18mn
    • €32mn gain in gross margin
    • Marketplace commissions increase: +12% in 2Q19
    • Monetization growing at a fast pace: +23% in 2Q19

                     


Emmanuel Grenier, Cnova CEO, commented:

“This second quarter showed a strong double-digit growth, driven by our strategic plan pillars: a dynamic marketplace and the growing success of our B2C and B2B services.

First, we went a step further in building our platform model. Our marketplace of products benefited from the rise in next-day delivery eligible products thanks to the quick expansion of Fulfillment by Cdiscount and Cdiscount Transport services for our marketplace vendors.  Our ecosystem of services significantly widened with the launch of a marketplace of holiday packages within Cdiscount Voyages and two new health services (health insurance and prescription eyeglasses).

Second, our CDAV loyalty program now counts more than 2 million members, who benefit from more than 1 million products eligible for free next-day delivery. This great success rewards our constant efforts in strengthening our bonds with our customers, also reinforced by our media coverage boosting our brand and visibility both online and offline.

Sticking to our strategic plan showed once again its relevance, illustrated by fast-improving business and financial results: our EBITDA is increasing and is positive for the first semester.”

Cnova N.V. Second Quarter(1) Change
2019 2018 Reported(1)(2) Organic(3)
 GMV(4) (€ millions) 847.2 759.8 +11.5% +13.0%
 Marketplace share(5) 40.1% 36.6% +3.5 pts
  Mobile share 49.0% 43.2% +5.8 pts
 CDAV share 37.9% 34.8% +3.1 pts
 Net sales(5) (€ millions) 468.8 444.6 +5.4% +7.0%
 Traffic (visits in millions) 235.3 213.5 +10.2%
 Mobile share 71.5% 65.4% + 6.1 pts
 Active customers(6) (millions) 9.2 8.7 +5.3%
 Orders(7) (millions) 5.9 5.8 +0.9%
 CDAV share 37.9% 35.3% +2.6 pts
 Number of items sold (millions) 11.1 11.0 +0.2%
  1. All figures are unaudited.
  2. Reported figures show all revenue generated by Cdiscount, including the technical goods sales realized in Casino Group’s hypermarkets and supermarkets.
  3. Organic growth: figures exclude (i) sales realized in Casino Group’s hypermarkets and supermarkets on technical goods and home category (total exclusion impact of +2.5 pts and +3.7 pts, respectively, on GMV [Gross Merchandise Volume] and net sales in 2Q19), and (ii) 1001Pneus & Stootie acquisitions during 4Q18 (total exclusion impact of -1.7 pt and -2.6 pts on GMV and net sales in 2Q19) but take into account showroom sales.
  4. GMV is defined as: all taxes included, product sales + other revenues + marketplace business volumes (calculated based on approved and sent orders) + services GMV
  5. Marketplace GMV shares have been adjusted to take into account coupons and warranties and exclude CDAV subscription fees. 2Q18 GMV share has therefore been adjusted by +0.6 pt for comparison purposes. 
  6. Active customers at the end of June having purchased at least once through Cdiscount sites and/or app during the previous 12 months.
  7. Total placed orders before cancellation due to fraud detection and/or customer non-payment.

2nd quarter and 1st semester 2019 Highlights

GMV 2Q19 1H19
Organic Growth +13.0% +11.0%

Organic GMV (gross merchandise volume) posted an increase of +13.0% in the 2nd quarter 2019 versus the same period in 2018 (+11.0% in the first semester 2019). GMV growth in the 2nd quarter 2019 was notably driven by the marketplace (+4.4 pts contribution to organic growth) and B2C services (+4.8 pts contribution), in particular Cdiscount Voyages (travel).

Marketplace 2Q19 1H19
Marketplace total GMV share +3.5 pts +3.3 pts
FFM marketplace GMV share +7.4 pts +6.3 pts

The marketplace is a key component of the overall product platform. Marketplace GMV share reached 40.1% in the 2nd quarter 2019, a +3.5 points increase (+3.3 points in the 1st semester 2019, at 37.8%). The GMV fulfilled by Cdiscount again experienced a very high growth (+57%) and reached 27% of marketplace GMV (+7.4 points).

Net sales 2Q19 1H19
Organic growth +7.0% +5.6%

Net sales amounted to €438 million in the 2nd quarter 2019, a +7% organic growth compared to the same period in 2018. The main drivers were the increase in marketplace commissions, new monetization revenue streams and showrooms revenues.

Traffic 2Q19 1H19
Mobile traffic growth +20% +18%
Mobile traffic share +6.1 pts +5.9 pts
Mobile GMV share +5.8 pts +5.3 pts

Traffic at Cdiscount totaled 235 million visits in the 2nd quarter 2019, driven by a 20% mobile traffic growth, which accounted for 72% of total traffic share (+ 6.1 points) and 49% of GMV share (+5.8 points). Regarding Unique Monthly Visitors (UMV), Cdiscount, ranked #2, again widened the gap by more than 2 million UMV with its nearest competitor, the largest gap since August 20183. Over the first four months of the year, UMV increased by +5% to 20 million, posting the highest progression among the 10 main competitors3.

CDAV 2Q19 1H19
GMV share +3.1 pts +2.1 pts

Cdiscount’s loyalty program, Cdiscount à Volonté (“CDAV”), now counts 2 million members. It accounted for 38% of the GMV (+3 points) in the 2nd quarter 2019.

1st semester financial performance

Cnova N.V.
(€ millions)
First semester Change
2019 2018
Revised4
Reported Organic
 GMV 1,752.2 1,613.8 +8.6% +11.0%
 Net sales 995.8 968.8 +2.8% +5.6%
 Gross profit 174.5 142.9 +22.1%  
 Gross margin 17.5% 14.7% +2.8 pts  
 SG&A (188.3) (162.1) +16.2%  
 Operating EBIT (13.9) (19.2) +5.4  
 EBITDA 18.1 6.3 +11.8  

Gross profit was €175 million in the 1st semester 2019, with an associated gross margin of 17.5%, a +2.8 point improvement compared to 2018. It benefited from the increased marketplace GMV share and associated commissions, a continued growth in monetization revenues as well as other revenues.

SG&A costs amounted to €(188) million in the 1st semester 2019 and accounted for 18.9% of net sales, increasing by +2.2 points. Fulfillment costs, at 8.2% (-0.2 pt), decreased as a percentage of net sales thanks to logistics productivity improvements with optimized processes and the rolling-out of 3D packing machines and innovative Skypod Exotec robots. Marketing costs rose to 3.9% of net sales (+1.1 pt) to support both unaided brand awareness (+9 pts y-o-y5) and Cdiscount’s traffic #2 market positioning (20 million average UMV over the first 4 months, the highest progression among the 10 main competitors). Technology & Content costs also progressed at 4.5% of net sales (+0.7 pt) driven by the investments supporting the development of B2C and B2B revenues. Development of new businesses also affected General & Administrative expenses (2.3% of net sales, +0.5 pt) including the impact from the integration of new entities (Stootie, 1001pneus).

As a result, EBITDA reached €18.1 million in the 1st semester 2019, a +€11.8m significant improvement compared to 20186. EBITDA benefited from a solid marketplace growth and a strong expansion of monetization revenues especially in the 2nd quarter, along with continued improvements of the core business profitability.

Operating EBIT increased by €5.4m compared to 2018, with depreciation and amortization increasing by €6.5m.

Net financial expense, mainly related to installment payment solutions offered to customers, amounted to €(24.0)7 million, mostly driven by business growth. It was well controlled and slightly decreased as percentage of net sales thanks to improvements in risk and fraud management.

Net loss from continuing operations improved by +€12.5m y-o-y to finish at €(42.2) million with an adjusted EPS of €(0.11) benefiting from the profitability improvements and non-current operational expenses decrease.

Free cash flow from continuing operating activities8 amounted to €50 million in the last twelve months, relying on strong fundamentals:

  • Operating profitability increased at a fast pace with a significant positive EBITDA at €35m, up by +€35m ;
  • Limited other cash operating expenses of €(10)m (+€25m variation) ;
  • Positive change in working capital of +€26m driven by inventory rationalization.

Capital expenditures were up to €(80)m and remained stable as a percentage of GMV at 2.1%, supporting the implementation of the strategic shift towards the platform model and monetization initiatives. As a result, free cash flow before interest expenses reached a negative €(8) million during the same period.

Change in net financial debt amounted to €(87)m during the same period.

Key Business Achievements:

Development of the marketplace and its related services

  • The marketplace is a key pillar of our product platform and a prominent contributor to our monetization initiatives through its associated services to sellers.
  • Marketplace activity accelerated during the 2nd quarter, gaining +3.5 points along with a 40.1% GMV share (+3.3 points in the 1st semester, at 37.8%).
  • The Fulfillment by Cdiscount is a key component of customer satisfaction through the increase in service quality, and a driver for CDAV sales with the addition of SKUs available for next-day delivery. It achieved a 57% GMV significant growth in the 2nd quarter 2019 and a +7.4 points increase in marketplace GMV share to reach 27%.
  • Marketplace vendor value added services revenues doubled in the 2nd quarter compared to the year before, thanks to the strong Premium pack growth, as well as the acceleration of recently launched services (Cdiscount Ads, Cdiscount Transport, Cdiscount Fintech).

B2C services rapidly growing, along with extension of the offer

  • Strong acceleration of B2C services, with a second quarter 2019 +41% GMV growth compared to the first quarter
  • Cdiscount Voyages (travel) outpaced its objectives and grew fast, with a 2nd quarter +73% GMV growth compared to the previous one. Moreover, the travel offer was significantly reinforced by the launch mid-May of a marketplace of holiday packages (flight + accommodation) with thousands of offers, to be tripled by end of the year. Several strong partnerships had also been concluded to widen the offer to car rentals and train bookings (with SNCF, the French national railway company).
  • Cdiscount Billetterie (ticketing) kept expanding its offer during the semester. In particular, the leading ticket booking company Ticketmaster offer is now available on Cdiscount, giving its clients access to more than 150,000 events. Cdiscount Billetterie GMV tripled in the 2nd quarter 2019 compared to the previous one.
  • Cdiscount Energie continued to expand with GMV and subscriptions that both more than doubled.
  • Launch of Cdiscount Santé (health), made up with a brand-new health insurance offer in partnership with Mutuelle Ociane Matmut and a low-priced prescription eyeglass offer.

Cdiscount à Volonté: pillar of the marketing strategy

  • CDAV program reached 2 million members
  • +2.1 pts GMV share (36.3%) in the first semester 2019, supported by a tripling of SKUs available to reach 1 million, thanks to the development of the Fulfillment by Cdiscount and Cdiscount Transport marketplace services for our marketplace vendors.

             

Boosting brand awareness

  • Cdiscount launched several powerful marketing campaigns boosting brand awareness, resulting in a +9.1 pts increase y-o-y in unaided awareness9. The most noticeable event was the release in May 2019 of a TV advertising in partnership with Disney on the movie, Aladdin: 2 spot formats on main French channels over 17 days, leading to more than 900 spots broadcasted, viewed by more than 29 million people.
  • Complimentary to offline campaigns, Cdiscount reinforced its online presence, leading to an extended 3 million fan base which is increasingly committed thanks to the development of specialized pages such as Cdiscount Gaming, le Bazar de Zoé (Home and Decoration) and Travel.

             

Further enhancing the customer journey

  • Leveraging on the 2018 success of the showrooms opened inside Géant stores, Cdiscount opened 9 new showrooms in the first semester 2019, bringing the total network to 55 at end June 2019.
  • Through Agrikolis, part of Cdiscount’s startup logistics incubator The Warehouse, Cdiscount opened 37 farming pickup points, of which 30 during the 2nd quarter. This new kind of picking point is used to deliver heavy products to remote rural areas while adding revenue to farmers and fostering social bonds between customers and local producers.
  • Cdiscount went further on developing synergies with Casino Group through multiple partnerships with Franprix. The most prominent was the launch of a 30-min delivery in Paris for the newly released Xiaomi MI9T phone. This is to be extended to a food offer in September 2019.

            

Monetization initiatives well advanced

  • Monetization revenues are another key pillar of Cdiscount profitable growth strategy. They grew by +23% in the 2nd quarter 2019 y-o-y, driven by strong B2C services (especially travel), financial services and B2B marketplace services growth.

International expansion plan well on track

  • Cdiscount now covers 25 European countries, 5 more than at the end of 1Q19.
  •  34 websites are directly connected as of the end June 2019, +23 compared to end of 1Q19.

At the forefront of logistics innovation

  • The Warehouse, Cdiscount’s logistics incubator, proved to be very successful with 3 out of 5 selected startups already implementing their solution for the 2018 promotion, and the 2019 promotion of 5 new startups started with the early success of Agrikolis.
  • Exotec, robotized picking solution, already successfully implemented in Cestas warehouse, is now fully operational in Réau warehouse, with a 50-robot fleet handling 50,000 bins.

Commitment to best-in-class Corporate Social Responsibility

  • For 10 years, Cdiscount has been working with the network Envie, committed in social and solidarity economy and specialized in giving products a second life. In total, Cdiscount has given Envie more than 60,000 non-sold and returned products that had been repaired then sold in the network stores, given to charities (1.2 tons of toys donated) or disposed into the appropriate recycling system.
  • Rolling-out of a new 3D packing machine, bringing the total to 4. These machines cut down parcel wasted space, optimize shipping space and cardboard usage, therefore reducing by 30% delivery truck traffic and pollution. Cdiscount now manages to pack 85% of its orders without any empty space.
  • Cdiscount adopted Facil'iti, a software solution facilitating web navigation for disabled people, especially those suffering from impaired vision or audition. It adapts Cdiscount’s website by compensating for their difficulties and helping them navigating through the website.

Outlook
Cdiscount’s strong growth associated with significant EBITDA improvement confirms the relevance of our strategy, driven by the positive orientation of our business pillars: marketplace and monetization initiatives through B2C and B2B services. As a result, Cdiscount is aligned with its full year objective both in terms of growth and profitability.

***

Cnova publishes today on its website, Wednesday July, 24th, its 2019 semi-annual report.

***

About Cnova N.V.

Cnova N.V., one of France’s leading e-Commerce companies, serves 9.2 million active customers via its state-of-the-art website, Cdiscount. Cnova N.V.’s product offering provides its clients with a wide variety of very competitively priced goods, fast and customer-convenient delivery options, practical and innovative payment solutions as well as travel, entertainment and domestic energy services. Cnova N.V. is part of Groupe Casino, a global diversified retailer. Cnova N.V.'s news releases are available at www.cnova.com. Information available on, or accessible through, the sites referenced above is not part of this press release.

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

***

Cnova Investor Relations Contact:
investor@cnovagroup.com
Tel: +31 20 301 22 40
Media contact:
directiondelacommunication@cdiscount.com
Tel: +33 5 56 30 07 14

Appendices
Cnova N.V. Consolidated Financial Statements(1)
                                                                                                                       

Consolidated Income Statement   First half
Adjusted for IFRS 16
Change   First half
Excl. IFRS 16 impact
€ in millions   2019 2018     2019 2018
Net sales   995.8 968.8 +2.8%   995.8 968.8
Cost of sales   (821.4) (825.9) -0.5%   (821.4) (825.9)
Gross profit   174.5 142.9 +22.1%   174.5 142.9
% of net sales (Gross margin)   17.5% 14.7%     17.5% 14.7%
SG&A(2)   (188.3) (162.1) +16.2%   (189.3) (163.0)
% of net sales   -18.9% -16.7% +2.2 pts   -19.0% -16.8%
Fulfillment   (81.6) (80.9) +0.9%   (82.3) (81.7)
Marketing   (39.0) (27.7) +40.8%   (39.0) (27.7)
Technology and content   (45.2) (36.9) +22.6%   (45.3) (36.9)
General and administrative   (22.5) (16.6) +35.3%   (22.6) (16.7)
Operating EBIT(3)   (13.9) (19.2) +27.8%   (14.8) (20.1)
% of net sales   -1.4% -2.0%     -1.5% -2.1%
Other expenses   (4.4) (11.9) -63.1%   (4.4) (11.9)
Operating profit/(loss)   (18.3) (31.2) +41.3%   (19.2) (32.1)
Net financial income/(expense)   (24.0) (23.5) +2.4%   (21.3) (21.2)
Profit/(loss) before tax   (42.3) (54.6) +22.6%   (40.5) (53.2)
Income tax gain/(expense)   0.1 (0.0) nm   0.1 (0.0)
Net profit/(loss) from continuing operations   (42.2) (54.6) +22.8%   (40.4) (53.3)
Net profit/(loss) from discontinued operations   (0.3) (0.3) +14.7%   (0.3) (0.3)
Net profit/(loss) for the period   (42.5) (54.9) +22.6%   (40.7) (53.5)
% of net sales   -4.3% -5.7%     -4.1% -5.5%
Attributable to Cnova equity holders (incl. discontinued)   (42.9) (54.8) +21.7%   (41.4) (53.4)
Attributable to non-controlling interests (incl. discontinued)   0.4 (0.2) nm   0.7 (0.2)
Adjusted EPS (€)(4)   (0.11) (0.12) +10.5%   (0.11) (0.12)
  1. IFRS 16, which replaces IAS 17 and the related interpretations from January 1st, 2019, eliminates the distinction between operating leases and finance leases: it requires recognition of an asset (the right to use the leased item) and a financial liability representative of discounted future rentals for virtually all lease contracts. Operating lease expense is replaced with depreciation expense related to the right of use and interest expense related to the lease liability. Previously, the Group recognized mainly operating lease expense on a straight-line basis over the term of the lease and recognized assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expense recognized. The Group decided to adopt the full retrospective approach as a transition method on January 1, 2019 and IFRS 16 has been applied retrospectively for each period presented. Detailed impacts of IFRS 16 application are included in Note 1 of the Unaudited condensed consolidated financial statements that will be available on our website in the coming days. 
  2. SG&A: selling, general and administrative expenses.
  3. Operating EBIT: operating profit/(loss) before other expenses (strategic and restructuring expenses, litigation expenses and impairment and disposal of assets expenses).
  4. 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   Adjusted for IFRS 16   Excluding IFRS 16 impact  
€ in millions   2019
End June
2018
End Dec
2018
End June
  2019
End June
2018
End Dec
2018
End June
                 
ASSETS                
                 
Cash and cash equivalents   93.6 35.5 52.3   93.6 35.5 52.3
Trade receivables, net   106.6 187.0 79.9   106.6 187.0 79.9
Inventories, net   349.0 355.6 370.8   349.0 355.6 370.8
Current income tax assets   3.5 3.0 2.5   3.5 3.0 2.5
Other current assets, net   140.5 127.2 102.3   140.5 127.2 102.3
Total current assets   693.1 708.4 607.9   693.1 708.4 607.9
                 
Other non-current assets, net   12.7 9.6 4.5   12.7 9.6 4.5
Deferred tax assets   41.2 38.6 0.5   41.2 38.6 0.5
Right of use, net   162.4 164.5 168.0   - - -
Property and equipment, net   36.0 39.1 34.9   36.0 39.1 34.9
Intangible assets, net   158.9 139.6 113.6   158.9 139.6 113.6
Goodwill   123.0 61.4 58.2   124.2 61.4 58.2
Total non-current assets   534.2 452.9 379.8   373.1 288.3 211.8
                 
TOTAL ASSETS   1,227.4 1,161.3 987.6   1,066.2 996.8 819.7
                 
EQUITY AND LIABILITIES                
                 
Current provisions   8.8 9.5 10.1   8.8 9.5 10.1
Trade payables   507.8 667.9 502.8   507.8 667.9 502.8
Current financial debt   453.1 234.3 321.1   453.1 234.3 321.1
Current lease liability   27.4 22.7 20.7   - - -
Current tax liabilities   63.1 42.3 37.5   63.1 42.3 37.5
Other current liabilities   152.1 192.0 124.1   152.7 192.5 124.6
Total current liabilities   1,212.3 1,168.7 1,016.3   1,185.6 1,146.6 996.2
                 
Non-current provisions   13.1 11.8 12.7   13.1 11.8 12.7
Non-current financial debt   2.4 2.4 0.0   2.4 2.4 0.0
Non-current lease liability   155.4 158.7 160.9   - - -
Deferred tax liabilities   1.7 1.6 0.3   1.7 1.6 0.3
Other non-current liabilities   2.0 1.7 1.9   12.2 10.1 8.5
Total non-current liabilities   174.6 176.2 175.8   29.4 25.9 21.5
                 
Share capital   17.2 17.2 17.2   17.2 17.2 17.2
Reserves, retained earnings and additional paid-in capital   (244.0) (200.8) (221.2)   (234.7) (192.9) (214.9)
Equity attributable to equity holders of Cnova   (226.7) (183.5) (204.0)   (217.4) (175.7) (197.7)
Non-controlling interests   67.1 0.0 (0.4)   68.7 0.0 (0.4)
Total equity   (159.6) (183.6) (204.4)   (148.7) (175.7) (198.1)
                 
 TOTAL EQUITY AND LIABILITIES   1,227.4 1,161.3 987.6   1,066.2 996.8 819.7


Consolidated Cash Flow Statement   Last Twelve Months   Last Six Months
at June 30 (€ in millions)   2019 2018   2019 2018
Net profit/(loss) from continuing operations   (26.2) (109.0)   (42.5) (54.5)
Net profit/(loss), attributable to non-controlling interests   0.5 (0.3)   0.4 (0.2)
Net profit (loss) for the period excl. discontinued operations   (25.7) (109.3)   (42.2) (54.6)
Depreciation and amortization expense   61.3 47.7   32.6 25.5
(Income) expenses on share-based payment plans   0.0 0.5   0.0 0.1
(Gains) losses on disposal of non-current assets   (0.5) 0.4   0.1 (0.1)
Other non-cash items   (0.3) (0.1)   (0.3) (0.1)
Financial expense, net   54.8 46.8   24.1 23.5
Current and deferred tax (gains) expenses   (37.0) 1.0   (0.1) 0.0
Income tax paid   (3.2) (3.2)   (1.8) (0.9)
Change in operating working capital   22.7 105.7   (96.5) 10.6
Inventories of products   22.3 (5.6)   7.1 19.2
Accounts payable   7.5 98.3   (158.5) (81.1)
Accounts receivable   (33.0) (28.8)   80.9 75.1
Working capital non-goods   25.9 41.8   (26.0) (2.7)
Net cash from/(used in) continuing operating activities   72.2 89.5   (84.1) 4.0
Net cash from/(used in) discontinued operating activities   (0.3) (9.3)   (1.0) (25.2)
Purchase of property, equipment & intangible assets   (84.2) (81.3)   (38.0) (34.3)
Purchase of non-current financial assets   (2.6) (2.3)   (2.4) (0.6)
Proceeds from disposal of prop., equip., intangible assets   3.9 6.3   3.7 6.3
Proceeds from disposal of non-current financial assets   0.0 2.1   0.0 2.1
Movement of perimeter, net of cash acquired   (1.8) (2.2)   0.0 0.0
Investments in associates   0.0 0.0   0.0 0.0
Changes in loans granted (including to related parties)   (0.1) 0.1   0.0 0.4
Net cash from/(used in) continuing investing activities   (84.9) (77.3)   (36.7) (26.1)
Net cash from/(used in) discontinued investing activities   0.0 (0.0)   0.0 (0.0)
Transaction with owners of non-controlling interests   (2.4) (0.0)   (2.4) 0.0
Additions to financial debt   2.3 (0.2)   3.3 1.0
Repayments of financial debt   0.3 (3.7)   (7.4) (10.4)
Repayments of lease liabilities (IFRS 16 adjustment)   (21.7) (13.4)   (11.3) (6.2)
Changes in loans received   117.0 79.5   203.4 96.2
Interest paid, net   (49.3) (43.2)   (21.9) (20.8)
Net cash from/(used in) continuing financing activities   46.1 19.0   163.7 59.8
Net cash from/(used in) discontinued financing activities   0.0 (1.7)   0.0 0.0
Effect of changes in foreign currency translation adjustments from discontinued operations   0.0 (0.1)   0.0 0.0
Change in cash and cash equivalents from continuing operations   33.4 31.2   42.9 37.8
Change in cash and cash equivalents from discontinued operations   (0.3) (11.0)   (1.0) (25.3)
Total change in cash and cash equivalents   33.1 20.2   41.8 12.5
Cash and cash equivalents, net, at period begin   36.1 15.8   27.3 23.6
             
Cash and cash equivalents, net, at period end   69.2 36.1   69.2 36.1

 è Adjusted for IFRS 16 impact

è Excluding IFRS 16 impact

Consolidated Cash Flow Statement   Last Twelve Months   Last Six Months
at June 30 (€ in millions)   2019 2018   2019 2018
Net profit/(loss) from continuing operations   (23.2) (106.6)   (41.1) (53.1)
Net profit/(loss), attributable to non-controlling interests   0.8 (0.3)   0.7 (0.2)
Net profit (loss) for the period excl. discontinued operations   (22.4) (107.0)   (40.4) (53.3)
Depreciation and amortization expense   37.9 30.3   20.5 15.8
(Income) expenses on share-based payment plans   0.0 0.5   0.0 0.1
(Gains) losses on disposal of non-current assets   (0.5) 0.4   0.1 (0.1)
Other non-cash items   (0.3) (0.1)   (0.3) (0.1)
Financial expense, net   49.7 43.0   21.4 21.2
Current and deferred tax (gains) expenses   (37.0) 1.0   (0.1) 0.0
Income tax paid   (3.2) (3.2)   (1.8) (0.9)
Change in operating working capital   26.2 111.2   (94.7) 15.0
Inventories of products   22.3 (5.6)   7.1 19.2
Accounts payable   7.5 98.3   (158.5) (81.1)
Accounts receivable   (33.0) (28.8)   80.9 75.1
Working capital non-goods   29.5 47.3   (24.2) 1.7
Net cash from/(used in) continuing operating activities   50.4 76.1   (95.3) (2.2)
Net cash from/(used in) discontinued operating activities   (0.3) (9.3)   (1.0) (25.2)
Purchase of property, equipment & intangible assets   (84.2) (81.3)   (38.0) (34.3)
Purchase of non-current financial assets   (2.6) (2.3)   (2.4) (0.6)
Proceeds from disposal of prop., equip., intangible assets   3.9 6.3   3.7 6.3
Proceeds from disposal of non-current financial assets   0.0 2.1   0.0 2.1
Movement of perimeter, net of cash acquired   (1.8) (2.2)   0.0 0.0
Investments in associates   0.0 0.0   0.0 0.0
Changes in loans granted (including to related parties)   (0.1) 0.1   0.0 0.4
Net cash from/(used in) continuing investing activities   (84.9) (77.3)   (36.7) (26.1)
Net cash from/(used in) discontinued investing activities   0.0 (0.0)   0.0 (0.0)
Transaction with owners of non-controlling interests   (2.4) (0.0)   (2.4) 0.0
Additions to financial debt   2.3 (0.2)   3.3 1.0
Repayments of financial debt   0.3 (3.7)   (7.4) (10.4)
Repayments of lease liabilities (IFRS 16 adjustment)   0.0 0.0      
Changes in loans received   117.0 79.5   203.4 96.2
Interest paid, net   (49.3) (43.2)   (21.9) (20.8)
Net cash from/(used in) continuing financing activities   67.9 32.4   174.9 66.1
Net cash from/(used in) discontinued financing activities   0.0 (1.7)   0.0 0.0
Effect of changes in foreign currency translation adjustments from discontinued operations   0.0 (0.1)   0.0 0.0
Change in cash and cash equivalents from continuing operations   33.4 31.2   42.9 37.8
Change in cash and cash equivalents from discontinued operations   (0.3) (11.0)   (1.0) (25.3)
Total change in cash and cash equivalents   33.1 20.2   41.8 12.5
Cash and cash equivalents, net, at period begin   36.1 15.8   27.3 23.6
             
Cash and cash equivalents, net, at period end   69.2 36.1   69.2 36.1


Upcoming Event
 
Wednesday, July 24, 2019 at 16:00 CEST / 10:00 EDT Cnova First Half 2019 Financial Results
Conference Call & Webcast


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Available From: July 24, 2019 at  13:00 EDT / 19:00 CEST
To: July 31, 2019 at  00:00 EDT / 06:00 CEST
Replay Pin Number:  13692256
   
Webcast:
http://public.viavid.com/index.php?id=135165
   
Presentation materials to accompany the call will be available at cnova.com on July 24, 2019.
   
An archive of the conference call will be available for 1 week at cnova.com.
 





1 Organic growth: figures include showroom sales and services; exclude technical goods and home category sales made in Casino Group’s
hypermarkets and supermarkets (total exclusion impact of +2.5 pts on GMV growth) and 1001Pneus/Stootie GMV, companies acquired in 4Q18, (total exclusion impact of -1.7 pt on GMV growth)



2 Marketplace GMV shares have been adjusted to take into account coupons and warranties and exclude CDAV subscription fees. 2Q18 GMV share has therefore been adjusted by +0.6 pt for comparison purposes and 1H18 by +0.1 pts



3 Latest Médiamétrie studies (April & May 2019)



4 IFRS 16, which replaces IAS 17 and the related interpretations from January 1st, 2019, eliminates the distinction between operating leases and finance leases: it requires recognition of an asset (the right to use the leased item) and a financial liability representative of discounted future rentals for virtually all lease contracts. Operating lease expense is replaced with depreciation expense related to the right of use and interest expense related to the lease liability. Previously, the Group recognized mainly operating lease expense on a straight-line basis over the term of the lease and recognized assets and liabilities only to the extent that there was a timing difference between actual lease payments and the expense recognized. The Group decided to adopt the full retrospective approach as a transition method on January 1, 2019 and IFRS 16 has been applied retrospectively for each period presented.



5 Source: latest Respondi study



6 EBITDA was positively impacted by IFRS 16 respectively for €13.1m in 1H19 and €10.6m in 1H18



7 Net financial expense includes €2.7m of interest on lease liability



8 For comparison purpose, cash flow figures are presented before IFRS 16 restatements. Adjusted for IFRS 16, FCF from continuing activities = €72m, EBITDA = €60m (+€42m vs 2018), change in working capital = +€23m. Considering €22m debt repayment, change in net financial debt remains unchanged at €(87)m.



9 Source: latest Respondi study




Attachment