2020 Full Year Financial Results

Marketplace expansion driving sustained growth and strong profitability increase

Strong increase in profitability with EBITDA up +63% reaching €133m and x3.6 EBIT reaching €53m

Strong +22% growth in marketplace GMV in 2020, accelerating in H2 with +30% orders and +27% items sold

Marketplace revenues growing fast and accelerating: €182m (+23%), +40% in Q4

Positive cash generation and net financial debt reduction

AMSTERDAM – February 18, 2021, 07:45 CET Cnova N.V. (Euronext Paris, ISIN, NL0010949392) (Cnova”) today announced its fourth quarter and full year activity and unaudited financial results.

2020 Highlights

In 2020, facing exceptional circumstances marked by increasingly digitalized sales and home delivery. Cnova further strengthened its economic model, growing model, growing fast and improving its margins, demonstrating the relevance of its positioning as the French ecommerce leader. The marketplace was at the heat of the profitable growth, growing fast at +22% now representing 44% of the product GMV (Gross Merchandise Volume), with the number of merchants growing +15% to 13.000 and assortment +33% to 100 million products.

Marketplace expansion contributed to a solid +8.6% performance of the GMV and increase in traffic, which reached a record-high 26 million unique monthly visitors in December, Cdiscount website served more than  10m clients over the year (+12%), with +10% members joining the loyalty program Cdiscount à Volonté.

Cnova operated at the same time a strategic shift in the product mix, accelerating the sale oh Home, Leisure and Beauty (+18% GMV on a full year basis) with positive impact on margins and client repurchase rates.

Digital marketing revenues were up +31% driving profitability. Cnova offers marketing services to both its 1.400 suppliers and 13.000 marketplace sellers, enabling them to promote their products and their brands in order to accelerate their sales.

EBITDA soared by +62.5% to €133m and EBIT was multiplied by 3.6x to reach €53m

  • The marketplace revenues went up to by +23.1% and reached €182m
  • The strategic product mix move towards Home, Leisure & Beauty brought higher margin
  • Digital marketing services to marketplace sellers and suppliers grew by +31.3%

A strong +22% marketplace expansion accelerating in the 2nd half of the year

  • GMV share went up +5.3pts to 43.6% on a full year basis and accelerated +6.1pts to 44.5% in H2
  • Marketplace KPIs accelerated in the 2nd half of the year with +30.0% orders (+26.1% on a full year basis) and 27.1% items sold (+23.8% on a full year basis)
  • The marketplace sales fulfilled by Cdiscount grew by +26.4% on a full year basis to reach 32.8% of marketplace GMV

Positive cash generation

  • Strong free cash flow generation before financial expenses of +€73m
  • It was supported by a strong +€51m EBITDA improvement, a+€64m positive change in working capital and sustained net CAPEX of €71m
  • Net financial debt reduced by €21m

A new B2B strategic move with the development in 2020 and the launch in 2021 of a turnkey marketplace solution for retailers and e-merchants

  • Comprehensive solution including products & merchants, technology and fulfilment services
  • Access to 100 million SKUs and 13k merchant base