CNOVA
N.V.
Third Quarter 2016 Financial Results
AMSTERDAM, October 26, 2016, 07:45
CEST - Cnova N.V. (NASDAQ & Euronext in Paris: CNV, ISIN:
NL0010949392) ("Cnova" or the "Company") today announced its
unaudited financial results for the third quarter 2016.
As a result of the Reorganization
Agreement dated as of August 8, 2016, by and between the Company,
Cnova Brazil, and Via Varejo S.A., pursuant to which Cnova Brazil
will be reorganized within Via Varejo, Cnova Brazil is classified
as a discontinued activity as of January 1, 2015. Therefore, all
Cnova financial and operational metrics in this press release refer
only to Cdiscount and to Cnova Holding with the exception of Page 4
and Annex C, which provide a summary financial results analysis and
selected metrics for Cnova Brazil.[*]
-
Gross merchandise volume
(GMV1): €681 million (+6%)
-
Net sales: €414 million
(+3%)
-
Gross profit at Cdiscount
France (CDF): €58 million (+6%)
-
Operating EBIT at CDF: €2
million (vs €1 million in 3Q15)
-
Free cash flow (LTM):
breakeven
Cnova N.V. Key Figures2 € million,
unaudited |
|
Q3 2016 |
|
Q3 2015
(restated2) |
|
|
|
|
|
|
|
|
|
|
GMV |
|
681 |
|
640 |
Net sales |
|
414 |
|
403 |
Gross profit |
|
58 |
|
55 |
Gross
margin |
|
14.1% |
|
13.6% |
SG&A |
|
(59) |
|
(57) |
Operating EBIT |
|
(1) |
|
(2) |
Cdiscount France |
|
2 |
|
1 |
Cnova
Holding and International |
|
(3) |
|
(3) |
Net profit/(loss) from
continuing activities |
|
(16) |
|
(8) |
Net profit/(loss) from
discontinued activities |
|
(60) |
|
(31) |
Adjusted
EPS3
continuing |
|
(0.02) |
|
(0.01) |
|
|
|
|
|
3rd Quarter 2016
Financial Performance
Gross merchandise
volume (GMV) amounted to €681 million for the 3rd quarter 2016
(+6.3% compared to the same period in 2015). This progression is
explained by:
-
On a year-on-year (y-o-y) basis, orders and number of items sold
grew by 18.8% and 19.9%, respectively,
-
Mobile share of traffic
rose 435 basis points y-o-y to 54.2%. Cdiscount revamped its mobile
app, and the mobile conversion rate was up
more than 20% compared to 3Q15,
-
Marketplace share of GMV
was 33.3% (+347 basis points y-o-y) due to category leadership and
ramp-up of fulfillment services,
-
In July, unseasonable weather and events on July
14th led to a low
single-digit increase in GMV before rebounding in August.
Net sales
totaled €414 million in the 3rd quarter 2016
(+2.8% y-o-y). Sales of home furnishings and household appliances
fell below double digit in July before recovering in August. The
Group decision to cut back on low profitability B2B activity
reduced net sales in the quarter by 3%. During the quarter,
Cdiscount France led the French e-commerce sector in terms of SEO
progression according to Yooda.
Gross profit
was €58 million with a corresponding margin of 14.1% (+46 basis
points y-o-y; Cdiscount France: +40 basis points). This improvement
results from both a larger marketplace contribution related to its
expansion and consumer financing service fees.
SG&A
costs amounted to €(59) million (14.4% of net sales):
As a result, operating EBIT totaled €(1) million compared to €(2)
million during the same period last year.
The operating
loss reported during the 3rd quarter of
2016 amounted to €(8) million and included expenses related to the
closing of the specialty site Le Comptoir
Santé in September as well as some residual expenses associated
with closed international operations.
Net financial expense was €(8) million
and included the interest expense associated with the factoring
costs from Cdiscount France's consumer financing plan.
Net loss from
continuing operations amounted to €(16) million with an
adjusted EPS of €(0.02).
Net loss from
discontinued operations amounted to €(60) million with an
adjusted EPS of €(0.11), mainly related to Cnova Brazil's
results.
Cash
Management (last twelve months at September 30, 2016)
Free cash
flow was €0 million with €17 million from Cdiscount France.
-
Net cash from continuing
operating activities at September 30, 2016, amounted to €33
million and included a change in operating working capital of €39
million. The improvement in operating working capital mainly
stemmed from €38 million at Cdiscount France.
-
Capex (purchase of
property, equipment and intangible assets) was €(33) million, or
1.8% of net sales.
Net financial debt3 position
at September 30, 2016 was €(124) million. At Cdiscount France
level, the net financial debt was €(77) million.
Customer offer
and service
Enhancements during the 3rd
quarter 2016 centered on improvement of existing and development of
new services, including:
-
Extension of same-day delivery of large items
(> 30 kgs) to the 10 largest cities in France (delivery between
19:00 and 23:00 for all orders received by 14:00);
-
Cstream, Cdiscount's video,
music streaming service launched on October 4, 2016;
-
CDAV (Cdiscount à volonté)
customers benefit from new services including private sale
offers.
Perimeter
change
As mentioned above, Cnova closed
the last of its specialty sites, Le Comptoir
Santé, in September 2016. The Company is also currently
considering whether it should continue with its last international
activity in the Ivory Coast or instead focus solely on its core
high-growth potential market in France.
Nine Month 2016
Financial Performance
GMV amounted
to €2,052 million for the first nine months of 2016 (+12.3%
compared to the same period in 2015) with a corresponding
marketplace share of 31.4% (+387 bps).
Net sales totaled €1,272 million in the first
nine months of 2016 (+9.1% y-o-y).
Gross profit totaled €180
million (+12.9% y-o-y) with a corresponding gross margin of 14.1%
(+48 basis points; Cdiscount France: +44 basis points).
Operating EBIT amounted to
€(5) million compared to €(22) million in the same period in 2015.
Cdiscount France achieved breakeven versus €(11) million during the
same period in 2015.
Outlook
Moving forward, Cnova will
concentrate on its French business via Cdiscount, and, among other
things, plans to:
-
Continue to push a strong increase in the number
of CDAV clients,
-
Ramp up marketplace fulfillment services,
-
Expand the quantity and quality of marketplace
sellers,
-
Increase the number of SKUs available for
immediate and next day delivery, and
-
Add new customer and marketplace revenue streams
to further monetize growing online traffic.
As for 2016, on a full year basis,
Cnova reiterates its guidance: Cdiscount France's operating EBIT is
expected to continue to improve and finish above breakeven (FY
2015: -4 M€).
***
Update on Cnova Brazil
(discontinued activity): 3rd Quarter
2016
GMV at Cnova Brazil amounted
to R$1.5 billion for the 3rd quarter 2016
(-24.2% y-o-y).
-
The 3rd quarter 2016
marketplace share of GMV was 21.2%, increasing
+926 basis points y-o-y (a marked acceleration versus previous
quarters: 14.7% in 4Q15, 15.6% in 1Q16 and 16.6% in 2Q16). New
sellers were attracted to Cnova Brazil's traffic streams thanks to
direct sales' strong local brands and pick-up points. A series of
initiatives were implemented over the quarter to attract new
sellers offering quality customer service, including massive offers
inclusion tools, better marketplace order tracking and customer
communication as well as marketplace online subscription
tools.
Net sales
totaled R$946 million* in the
3rd quarter 2016
(-38.1% y-o-y) as a reduction in marketing investment led lower
traffic. From an operational point of view, though, the main
bottlenecks impacting this and previous quarters (residual ERP
migration problems and logistics disruptions) are mostly resolved
by end of September, while the out-of-stock situation remains an
issue.
Cnova Brazil notes a significant improvement in commercial trends, on the back of an easier comparison base:
Cnova Brazil - B2C commercial trend (promised
orders)
(Change vs 2015) |
2Q16 |
3Q16 |
4
weeks to
Oct. 23, 2016 |
Direct sales |
-24% |
-30% |
-12% |
Marketplace
volume |
+46% |
+31% |
+11% |
GMV |
-17% |
-21% |
-8% |
Gross profit
was R$172 million in the 3rd quarter 2016
with a corresponding margin of 18.2% (+645 basis points y-o-y).
This improvement results primarily from higher supplier and
marketplace contributions as well as the recognition in 3Q16 of
non-recurring VAT (PIS Cofins) credits (leading to R$18 million
more than 3Q15; without this impact, the 3Q16 gross margin would
have been 13.8%).
SG&A
costs increased to R$247 million (26.1% of net sales) in the
3rd quarter 2016
mainly due to higher legal expenses related to customer claims from
past operational inefficiencies, increased provisions for
chargeback expenses and for returned products in transit.
As a result, 3Q16 operating EBIT totaled R$(75) million compared to
R$(61) million during the same period last year. The operating loss reported during the 3rd
quarter 2016 amounted to R$(88) million.
Net financial
expense was R$88 million (up 12.7% y-o-y) in 3Q16 due to
interest costs from new loans contracted this year.
Net loss
amounted to R$(176) million for the 3rd quarter of
2016.
Net financial
debt at September 30, 2016 was R$(1,255) million.
***
End notes:
1.
Gross Merchandise Volume (GMV) is defined as
product sales + other revenues + marketplace business volumes
(calculated based on approved and sent orders) + taxes.
2.
Restatements, adjustments and
reclassifications:
· 1Q15,
2Q15 and 3Q15 have been adjusted for the apportionment of certain
adjustments in relation to the internal review performed in Cnova
Brazil and previously recorded in 4Q15 - see our 2015 annual report
on form 20-F on pages iv, 95 and F13 for more details.
· 3Q15
figures have been adjusted for the reclassification as discontinued
activities of Cdiscount Thailand and Cdiscount Vietnam (sold 1Q16),
Cdiscount Cameroon and Cdiscount Senegal (abandoned 2Q16),
Cdiscount Colombia (abandoned 3Q16) and Cnova Brazil (under
reorganization).
3. Non-GAAP financial measure. See Non-GAAP Definitions and/or
Reconciliations sections of this press release for additional
information.
About Cnova
N.V.
Cnova N.V., one of the leading e-Commerce
companies in France, serves 7.9 million active customers via
state-of-the-art e-tail Cdiscount websites in France and the Ivory
Coast. Cnova N.V.'s product offering of more than 19 million
references 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.
Forward-Looking
Statements
This press
release contains forward-looking statements within the meaning of
the U.S. Private Securities Litigation Reform Act of 1995, Section
27A of the U.S. Securities Act of 1933, as amended, and Section 21E
of the U.S. Securities Exchange Act of 1934, as amended. Such
forward-looking statements may generally be identified by words
like "anticipate," "assume," "believe," "continue," "could,"
"estimate," "expect," "intend," "may," "plan," "potential,"
"predict," "project," "future," "will," "seek" and similar terms or
phrases. Examples of forward-looking statements include, but
are not limited to, statements made regarding the possibility,
timing and other terms and conditions of the proposed transaction
and the related offer by the Company's controlling shareholder
Casino, Guichard-Perrachon ("Casino") for the outstanding shares of
Cnova. The forward-looking statements contained in this press
release are based on management's current expectations, which are
subject to uncertainty, risks and changes in circumstances that are
difficult to predict and many of which are outside of Cnova's
control. Important factors that could cause Cnova's actual results
to differ materially from those indicated in the forward-looking
statements include, among others: the ability to obtain required
shareholder approvals for closing of the corporate reorganization
in Brazil (the "Reorganization"); the ability to complete the
Reorganization and other transactions and the timing of completion
of the Reorganization and such other transactions; the effect of
the announcement of the Reorganization on the ability of the
Company to retain and hire key personnel, maintain relationships
with its customers and suppliers, and maintain its operating
results and business generally; the outcome of any legal
proceedings that may be instituted against the Company and others
relating to the reorganization agreement, dated as of August 8,
2016, between Cnova Brazil, Via Varejo and Cnova (the
"Reorganization Agreement"); the occurrence of any other event,
change or other circumstance that could give rise to the
termination of the Reorganization Agreement; changes in global,
national, regional or local economic, business, competitive, market
or regulatory conditions; and other factors discussed under the
heading "Risk Factors" in the U.S. Annual Report on Form 20-F for
the year ended December 31, 2015, filed with the SEC on July
22, 2016, and other documents filed with or furnished to the SEC.
Any forward-looking statements made in this press release speak
only as of the date hereof. Factors or events that could cause
Cnova's actual results to differ from the statements contained
herein may emerge from time to time, and it is not possible for
Cnova to predict all of them. Except as required by law, Cnova
undertakes no obligation to publicly update any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
***
Cnova Investor Relations Contact:
Head of Investor Relations
investor@cnova.com
Tel: +31 20 795 06 71 |
Media contact:
Head of Communication
directiondelacommunication@cnovagroup.com
Tel: +31 20 795 06 76 |
Annexes
Annex A - Cnova
N.V.
3rd Quarter and
FY 2015 Consolidated Financial Statements (unaudited)
Consolidated Income Statement |
3rd
Quarter |
Change |
|
Full
Year |
€ millions, unaudited |
2016 |
2015
(restated*) |
|
2015
(restated*) |
|
|
|
|
|
|
Net sales |
414.1 |
402.7 |
+2.8% |
|
1,737.9 |
Cost of sales |
(355.7) |
(347.9) |
+2.3% |
|
(1,509.0) |
Gross
profit |
58.3 |
54.9 |
+6.3% |
|
228.9 |
% of net sales (Gross margin) |
14.1% |
13.6% |
+46 bps |
|
13.2% |
SG&A (Selling, General & Administrative
expenses) |
(59.5) |
(57.3) |
+3.8% |
|
(253.6) |
% of
net sales |
-14.4% |
-14.2% |
-14 bps |
|
-14.6% |
Fulfillment |
(27.9) |
(31.2) |
-10.5% |
|
(136.4) |
Marketing |
(7.8) |
(5.9) |
+31.6% |
|
(24.2) |
Technology and
content |
(14.1) |
(11.0) |
+28.1% |
|
(48.1) |
General and
administrative |
(9.7) |
(9.2) |
+5.5% |
|
(44.9) |
Operating profit/(loss) from ordinary activities (Operating
EBIT) |
(1.1) |
(2.4) |
-52.4% |
|
(24.7) |
% of net sales |
-0.3% |
-0.6% |
|
|
-1.4% |
Other
expenses |
(7.2) |
(4.9) |
+48.1% |
|
(36.1) |
Operating profit/(loss) |
(8.4) |
(7.3) |
+14.8% |
|
(60.8) |
Net
financial income/(expense) |
(7.9) |
0.5 |
|
|
(1.4) |
Profit/(loss) before tax |
(16.2) |
(6.8) |
+138.2% |
|
(62.2) |
Income tax
gain/(expense) |
0.4 |
(1.6) |
-121.6% |
|
(16.3) |
Net profit/(loss) from continuing operations |
(15.9) |
(8.4) |
+87.9% |
|
(78.5) |
Net
profit/(loss) from discontinued operations |
(59.8) |
(31.0) |
+92.5% |
|
(180.5) |
Net
profit/(loss) for the period |
(75.6) |
(39.5) |
+91.5 % |
|
(259.0) |
% of
net sales |
-18.3% |
-9.8% |
|
|
-14.9% |
Attributable to Cnova
equity holders (incl. discontinued) |
(74.5) |
(35.9) |
|
|
(244.2) |
Attributable to non-controlling interests (incl. discontinued) |
(1.2) |
(3.6) |
|
|
(14.8) |
Adjusted EPS (€) from
continuing operations |
(0.02) |
(0.01) |
|
|
(0.09) |
Adjusted EPS (€) from
discontinued operations |
(0.11) |
(0.06) |
|
|
(0.36) |
Adjusted EPS (€) |
(0.13) |
(0.07) |
|
|
(0.45) |
* Please see
Page 9
Consolidated Balance
Sheet
€ millions, unaudited |
|
Sept. 30, 2016 |
|
Dec. 31, 2015
(restated*) |
|
Sept. 30, 2015
(restated*) |
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents |
|
181.9 |
|
400.8 |
|
291.8 |
Trade receivables,
net |
|
67.5 |
|
129.7 |
|
138.0 |
Inventories, net |
|
226.1 |
|
415.0 |
|
418.0 |
Current income tax
assets |
|
0.6 |
|
0.8 |
|
0.8 |
Other
current assets, net |
|
84.6 |
|
195.5 |
|
132.6 |
Assets
held for sale |
|
844.7 |
|
-- |
|
-- |
Total current assets |
|
1,405.5 |
|
1,141.8 |
|
981.1 |
|
|
|
|
|
|
|
Other non-current
assets, net |
|
11.1 |
|
23.5 |
|
75.5 |
Deferred tax
assets |
|
10.8 |
|
11.6 |
|
60.3 |
Property and
equipment, net |
|
11.6 |
|
33.5 |
|
38.4 |
Intangible assets,
net |
|
63.5 |
|
116.9 |
|
121.4 |
Goodwill |
|
56.5 |
|
391.4 |
|
378.8 |
Total non-current assets |
|
153.5 |
|
576.9 |
|
674.2 |
|
|
|
|
|
|
|
TOTAL ASSETS |
|
1,559.1 |
|
1,718.7 |
|
1,655.3 |
|
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
provisions |
|
5.7 |
|
7.5 |
|
3.4 |
Trade payables |
|
428.9 |
|
1,216.0 |
|
884.9 |
Current financial
debt |
|
307.0 |
|
132.2 |
|
372.6 |
Current tax
liabilities |
|
30.5 |
|
51.2 |
|
32.8 |
Other current
liabilities |
|
70.7 |
|
178.5 |
|
112.0 |
Liabilities held for
sale |
|
751.9 |
|
-- |
|
-- |
Total current liabilities |
|
1,594.8 |
|
1,585.4 |
|
1,405.6 |
|
|
|
|
|
|
|
Non-current
provisions |
|
12.0 |
|
11.8 |
|
11.0 |
Non-current financial
debt |
|
6.9 |
|
14.8 |
|
7.7 |
Other non-current
liabilities |
|
1.6 |
|
8.6 |
|
1.7 |
Total non-current liabilities |
|
20.5 |
|
35.2 |
|
20.4 |
|
|
|
|
|
|
|
Share capital |
|
22.1 |
|
22.1 |
|
22.1 |
Reserves, retained
earnings and additional paid-in capital |
|
(79.9) |
|
83.4 |
|
211.7 |
Equity attributable to equity holders of Cnova |
|
(57.8) |
|
105.5 |
|
233.7 |
Non-controlling interests |
|
1.6 |
|
(7.4) |
|
(4.5) |
Total equity |
|
(56.2) |
|
98.1 |
|
229.3 |
|
|
|
|
|
|
|
TOTAL EQUITY AND LIABILITIES |
|
1,559.1 |
|
1,718.7 |
|
1,655.3 |
* Please see Page 9
Consolidated Cash Flow Statement |
|
Last Three
Months |
|
Last
Twelve Months |
|
Full
Year |
at September 30 (except FY
2015, € millions, unaudited) |
|
2016 |
2015
(restated*) |
|
2016 |
2015
(restated*) |
|
2015
(restated*) |
Net profit/(loss) from
continuing operations |
|
(15.9) |
(8.2) |
|
(81.4) |
(37.1) |
|
(77.5) |
Net profit/(loss),
attributable to non-controlling interests |
|
-- |
(0.2) |
|
(0.8) |
(0.3) |
|
(1.0) |
Net profit (loss) for the period excl. discontinued
operations |
|
(15.9) |
(8.4) |
|
(82.1) |
(37.4) |
|
(78.5) |
Depreciation and
amortization expense |
|
5.6 |
4.0 |
|
22.5 |
19.9 |
|
20.7 |
(Income) expenses on
share-based payment plans |
|
-- |
0.1 |
|
0.1 |
3.1 |
|
0.3 |
(Gains) losses on
disposal of non-current assets and impairment of assets |
|
1.9 |
2.7 |
|
13.2 |
9.4 |
|
13.4 |
Share of profit of
associates |
|
|
|
|
|
(1.0) |
|
|
Other non-cash
items |
|
-- |
-- |
|
0.5 |
0.2 |
|
0.9 |
Financial expense,
net |
|
7.9 |
(0.5) |
|
28.0 |
(7.2) |
|
1.4 |
Current and deferred
tax (gains) expenses |
|
(0.4) |
1.6 |
|
15.7 |
(4.1) |
|
16.3 |
Income tax paid |
|
(0.8) |
0.4 |
|
(3.6) |
(1.8) |
|
(2.9) |
Change in operating
working capital |
|
22.1 |
16.1 |
|
38.8 |
67.3 |
|
36.8 |
Inventories of products |
|
7.7 |
(4.8) |
|
0.7 |
(42.8) |
|
(35.5) |
Trade
payables |
|
9.8 |
29.1 |
|
36.3 |
117.9 |
|
32.8 |
Operating payables |
|
4.1 |
(1.7) |
|
15.1 |
11.5 |
|
1.6 |
Trade
receivables |
|
(7.3) |
(16.0) |
|
9.3 |
(7.2) |
|
1.9 |
Other
receivables |
|
-- |
-- |
|
-- |
1.3 |
|
-- |
Other |
|
7.7 |
9.4 |
|
(22.6) |
(13.5) |
|
35.9 |
Net
cash from/(used in) continuing operating activities |
|
20.4 |
16.0 |
|
33.2 |
48.3 |
|
8.5 |
Net cash from/(used in) discontinued operating
activities |
|
(52.5) |
(48.8) |
|
(163.3) |
55.4 |
|
3.0 |
Purchase of property,
equipment & intangible assets |
|
(8.4) |
(9.8) |
|
(32.8) |
(44.5) |
|
(42.6) |
Purchase of
non-current financial assets |
|
-- |
-- |
|
(1.2) |
(1.2) |
|
(0.9) |
Proceeds from disposal
of prop., equip., intangible assets |
|
(0.2) |
-- |
|
2.7 |
0.2 |
|
2.5 |
Proceeds from disposal
of non-current financial assets |
|
-- |
-- |
|
-- |
2.2 |
|
2.2 |
Acquisition of an
entity net of cash acquired |
|
-- |
5.6 |
|
-- |
5.7 |
|
5.6 |
Investments in
associates |
|
-- |
-- |
|
(3.0) |
(1.0) |
|
(0.1) |
Changes in
loans granted (including to related parties ) |
|
-- |
(4.4) |
|
4.2 |
21.9 |
|
65.9 |
Net
cash from/(used in) continuing investing activities |
|
(8.7) |
(8.6) |
|
(30.2) |
(16.7) |
|
32.6 |
Net cash from/(used in) discontinued investing
activities |
|
1.2 |
(1.2) |
|
(6.9) |
(42.8) |
|
(18.2) |
Proceeds from IPO, net
of costs |
|
-- |
-- |
|
-- |
137.4 |
|
-- |
Transaction with
owners of non-controlling interests |
|
|
|
|
(5.4) |
(9.4) |
|
(18.6) |
Additions to financial
debt |
|
0.9 |
-- |
|
7.6 |
30.1 |
|
1.3 |
Repayments of
financial debt |
|
(0.5) |
-- |
|
(5.9) |
(1.2) |
|
-- |
Changes in loans
received |
|
6.2 |
(6.0) |
|
(39.9) |
178.6 |
|
(8.0) |
Interest
paid, net |
|
(6.6) |
4.3 |
|
(16.8) |
13.8 |
|
8.8 |
Net
cash from/(used in) continuing financing activities |
|
-- |
(1.7) |
|
(60.4) |
349.4 |
|
(16.5) |
Net cash from/(used in) discontinued financing
activities |
|
42.3 |
(8.2) |
|
111.0 |
(37.8) |
|
(57.4) |
Effect of
changes in foreign currency translation adjustments |
|
(7.7) |
(58.0) |
|
55.2 |
(112.8) |
|
(55.4) |
Change in cash and cash equivalents from continuing
operations |
|
19.4 |
(52.3) |
|
(2.2) |
299.6 |
|
(30.8) |
Change in cash and cash equivalents from discontinued
operations |
|
2.1 |
(70.3) |
|
(92.6) |
(56.6) |
|
(150.5) |
Cash and cash equivalents, net, at period begin |
|
173.6 |
412.3 |
|
289.7 |
46.7 |
|
573.2 |
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, net, at period end |
|
194.9 |
289.7 |
|
194.9 |
289.7 |
|
391.8 |
* Please see Page 9
Annex B - Cnova N.V.
Additional Financial Information
(unaudited)
Selected 3rd
Quarter Data
€ millions, unaudited |
2016 |
2015 |
Restated* |
Pro forma** |
(as of Sept. 30,
2016) |
(as of Sept. 30,
2015) |
GMV |
680.9 |
640.3 |
1,125.7 |
Net
sales |
414.1 |
402.7 |
785.3 |
Gross
profit |
58.3 |
54.9 |
97.7 |
% of
net sales (Gross margin) |
14.1% |
13.6% |
12.4% |
SG&A |
(59.5) |
(57.3) |
(122.1) |
Operating profit/(loss) from ordinary activities (Operating
EBIT) |
(1.1) |
(2.4) |
(24.4) |
% of
net sales (EBIT margin) |
-0.3% |
-0.6% |
-3.1% |
Net
Financial Income/(Expense) |
(7.9) |
0.5 |
(17.2) |
Selected Nine Month
Data
€ millions, unaudited |
2016 |
2015 |
Restated* |
Pro forma** |
(as of Sept. 30,
2016) |
(as of Sept. 30,
2015) |
GMV |
2,051.8 |
1,826.8 |
3,510.2 |
Net
sales |
1,272.3 |
1,166.6 |
2,523.4 |
Gross
profit |
179.9 |
159.3 |
325.0 |
% of
net sales (Gross margin) |
14.1% |
13.7% |
12.9% |
SG&A |
(184.9) |
(181.7) |
(393.0) |
Operating profit/(loss) from ordinary activities (Operating
EBIT) |
(5.0) |
(22.3) |
(68.0) |
% of
net sales (EBIT margin) |
-0.4% |
-1.9% |
-2.7% |
Net
Financial Income/(Expense) |
(20.4) |
6.2 |
(38.4) |
1Q15, 2Q15 and
3Q15 have been adjusted for the apportionment of certain
adjustments previously recorded in 4Q15 - see our 2015 annual
report on form 20-F on pages iv, 95 and F13 for more
details.
3Q15 figures have
been adjusted for the reclassification as discontinued activities
of Cdiscount Thailand and Cdiscount Vietnam (sold 1Q16), Cdiscount
Cameroon and Cdiscount Senegal (abandoned 2Q16), Cdiscount Colombia
(abandoned 3Q16) and Cnova Brazil (under reorganization).
** These 3Q15 and nine-month 2015 figures
include the activity of Cnova Brazil and of Cdiscount in Thailand,
Vietnam, Cameroon, Senegal and Colombia.
1Q15, 2Q15 and
3Q15 have been adjusted for the apportionment of certain
adjustments previously recorded in 4Q15 - see our 2015 annual
report on form 20-F on pages iv, 95 and F13 for more
details.
Annex C - Cnova
Brazil (discontinued activity)
Additional Financial Information
(unaudited)
Selected 3rd Quarter
Data
R$ millions, unaudited |
2016 |
2015
Restated* |
GMV |
1,465.4 |
1,934.5 |
Net
sales |
946.1 |
1,528.5 |
Gross
profit |
171.8 |
179.0 |
% of
net sales (Gross margin) |
18.2% |
11.7% |
SG&A |
(247.1) |
(239.6) |
Operating profit/(loss) from ordinary activities (Operating
EBIT) |
(75.3) |
(60.6) |
% of
net sales (EBIT margin) |
-8.0% |
-4.0% |
Net
Financial Income/(Expense) |
(88.1) |
(78.2) |
Net
profit |
(175.7) |
(95.9) |
Selected Nine Month Data
R$ millions, unaudited |
2016 |
2015
Restated* |
GMV |
4,761.6 |
5,837.1 |
Net
sales |
3,201.7 |
4,696.6 |
Gross
profit |
408.8 |
593.2 |
% of
net sales (Gross margin) |
12.8% |
12.6% |
SG&A |
(764.3) |
(687.5) |
Operating profit/(loss) from ordinary activities (Operating
EBIT) |
(355.6) |
(94.2) |
% of
net sales (EBIT margin) |
-11.1% |
-2.0% |
Net
Financial Income/(Expense) |
(251.3) |
(177.3) |
Net
profit |
(806.7) |
(183.9) |
Summarized balance sheet
R$ millions, unaudited |
Sept. 30, 2016 |
Cash and cash
equivalents |
47.0 |
Inventory |
486.9 |
Trade
receivables |
260.1 |
Total
current assets |
1,273.2 |
Total
non-current assets** |
1,716.0 |
TOTAL
ASSETS |
2,989.2 |
|
|
Trade
payables |
1,307.9 |
Current
financial debt |
843.9 |
Total
current liabilities |
2,608.3 |
Non-current
financial debt |
458.0 |
Total
non-current liabilities |
565.4 |
Total
Equity |
(184.5) |
TOTAL
EQUITY AND LIABILITIES |
2,989.2 |
1Q15, 2Q15 and
3Q15 have been adjusted for the apportionment of certain
adjustments previously recorded in 4Q15 - see our 2015 annual
report on form 20-F on pages iv, 95 and F13 for more
details.
** Of
which R$1.4 billion is goodwill.
Annex D -
Definitions
Adjusted EPS or Adjusted earnings per share
- calculated as adjusted net profit/(loss)
divided by the weighted average number of ordinary shares
outstanding during the applicable period. See "Non-GAAP
Reconciliations" section for additional information.
Adjusted net profit/(loss) -
calculated as net profit/(loss) before Other Expenses and the
related tax impacts. See "Non-GAAP Reconciliations" section for
additional information.
Free cash flow - Net cash from/(used in) operating
activities less purchase of property and equipment and intangible
assets as presented in the consolidated cash flow statement. See
"Non-GAAP Reconciliations" section for additional information.
Gross margin - Gross profit as
a percentage of net sales. See "Non-GAAP Reconciliations" section
for additional information.
Gross merchandise volume (GMV) - Gross Merchandise
Volume (GMV) is defined as product sales + other revenues +
marketplace business volumes (calculated based on approved and sent
orders) + taxes.
Marketplace
share - Includes marketplace share of www.cdiscount.com in
France as well as extra.com.br, pontofrio.com, casasbahia.com.br
and cdiscount.com.br in Brazil.
Net Cash / (Net Financial Debt) - calculated as the
sum of (i) cash and cash equivalents and (ii) the current account
provided by Cnova or its subsidiaries to Casino pursuant to cash
pool arrangements, less financial debt. See "Non-GAAP
Reconciliations" section for additional information.
Adjusted EBITDA - calculated as operating
profit/(loss) from ordinary activities (Operating EBIT) before
depreciation and amortization expense and share based payment
expenses. See "Non-GAAP Reconciliations" section for
additional information.
Operating profit/(loss) from ordinary activities (Operating
EBIT) - calculated as operating profit/(loss) before other
expenses (restructuring, initial public offering expenses,
litigation, gain/(loss) from disposal of non-current assets and
impairment of assets).
Change in Operating Working Capital - calculated as
the sum of the changes in inventories of products, trade payables,
operating payables, operating receivables and other items of the
operating working capital as presented in the Consolidated Cash
Flow Statement.
Other expenses - calculated as the sum of
restructuring, initial public offering expenses, litigation,
gain/(loss) from disposal of non-current assets and impairment of
assets.
Cash loss from activities -
calculated from entries on the cash flow statement in the following
way: net profit/(loss) for the last twelve months, plus
depreciation and amortization expense, plus (income)/expenses on
share-based payment plans, plus (gains)/losses on disposal of
non-current assets and impairment of assets, plus share of
(profits)/losses of associates, plus other non-cash items plus
financial expense, net, plus current and deferred tax
(gains)/expenses, plus income tax paid.
Annex E - Non-GAAP
Reconciliations
In addition to disclosing
financial results in accordance with International Financial
Reporting Standards, or IFRS, this earnings release contains
non-GAAP financial measures that Cnova uses as measures of its
performance. These non-GAAP measures should be viewed as a
supplement to and not a substitute for Cnova's IFRS measures of
performance and financial results in accordance with IFRS and
reconciliations from these results should be carefully
evaluated.
Restatements, adjustments and
reclassifications:
-
1Q15, 2Q15 and 3Q15 have been adjusted for the
apportionment of certain adjustments previously recorded in 4Q15 -
see our annual report on form 20-F on pages iv, 95 and F13 for more
details.
-
3Q15 figures have been adjusted for the
reclassification as discontinued activities of Cdiscount Thailand
and Cdiscount Vietnam, (which have been both sold in 1Q16),
Cdiscount Cameroon and Cdiscount Senegal (both abandoned in 2Q16)
and Cdiscount Colombia (abandoned at the end of July 2016).
-
Cnova N.V. figures for 2015 and 2016 reflect the
reclassification of Cnova Brazil as a discontinued activity in the
consolidated income statement and as an asset held for sale in the
consolidated balance sheet in accordance with IFRS 5, following the
Reorganization Agreement with Via Varejo S.A. announced by Cnova on
August 8, 2016, approved by Via Varejo's minority shareholders on
September 12, 2016, and which will be submitted for approval by
Cnova shareholders on October 27, 2016.
Adjusted net profit/(loss)
Adjusted earnings per share
(Adjusted EPS)
Adjusted net profit/(loss) is
calculated as net profit/(loss) before restructuring, initial
public offering expenses, litigation, gain/(loss) from disposal of
non-current assets and impairment of assets and the related tax
impacts.
Adjusted net profit/(loss) Cnova
is a financial measure used by Cnova's management and board of
directors to evaluate the overall financial performance of the
business. In particular, the exclusion of certain expenses in
calculating adjusted net profit/(loss) facilitates the comparison
of income on a period-to-period basis.
Adjusted EPS is calculated as
adjusted net profit/(loss) divided by the weighted average number
of outstanding ordinary shares of Cnova during the applicable
period.
The following table reflects the
reconciliation of net profit/(loss) attributable to equity holders
of Cnova to adjusted net profit/(loss) attributable to equity
holders of Cnova and presents the computation of Adjusted EPS for
each of the periods indicated.
€
millions |
|
Q3 2016 |
Q3 2015 |
Net
profit/(loss) for the period attributable to equity holders of
Cnova |
|
(15.9) |
(8.4) |
Excluding: |
|
|
|
Restructuring
expenses |
|
5.9 |
2.2 |
Litigation
expenses |
|
(0.2) |
0.4 |
Initial public
offering expenses |
|
-- |
0.1 |
Gain/(loss) from
disposal of non-current assets |
|
-- |
(0.1) |
Asset impairment
charges |
|
1.6 |
2.2 |
Income tax effect on
above adjustments |
|
(0.1) |
-- |
Minority
interest effect on above adjustments |
|
(0.3) |
-- |
Adjusted net profit/(loss) for the period attributable to
equity holders of Cnova |
|
(8.9) |
(3.6) |
Weighted
average number of ordinary shares |
|
441,297,846 |
441,297,846 |
Adjusted EPS (€) from continuing operations |
|
(0.02) |
(0.01) |
Free cash flow
Free cash flow is calculated as
net cash from/(used in) continuing operating activities less
capital expenditures (purchases of property, equipment and
intangible assets) as presented in our cash flow statement. Free
cash flow is a financial measure used by Cnova's management and
board of directors to evaluate the overall financial performance of
the business. In particular, it allows the comparison of
operational cash flow after capex on a period-to-period basis.
€
millions |
|
Sept 30, 2016 (LTM) |
Net
cash from/(used in) continuing operating activities |
|
33.2 |
Less
purchase of property, equipment & intangible assets |
|
(32.8) |
Free cash flow |
|
0.4 |
Gross profit and
Gross margin
Gross profit is calculated as net sales less cost of sales. Gross
margin is gross profit as a percentage of net sales. Gross profit
and gross margin are included in this press release because they
are performance measures used by our management and board of
directors to determine the commercial performance of our
business.
The following tables present a
computation of gross profit and gross margin for each of the
periods indicated:
€
millions |
|
Q3 2016 |
Q3 2015 |
Net
sales |
|
414.1 |
402.7 |
Less: Cost
of sales |
|
(355.7) |
(347.9) |
Gross Profit |
|
58.3 |
54.9 |
Gross
margin |
|
14.1% |
13.6% |
Net Cash/(Net Financial Debt)
Net cash/(Net financial debt) is
calculated as the sum of (i) cash and cash equivalents and (ii)
cash pool balances held in arrangements with Casino Group and
presented in other current assets, less (iii) current and (iv)
non-current financial debt. Net cash/(Net financial debt) is a
measure that provides useful information to management and
investors to evaluate our cash and cash equivalents and debt levels
and our current account position, taking into consideration the
cash pool arrangements in place among certain members of the Casino
Group, and therefore assists investors and others in understanding
our cash position and liquidity.
The following table presents a
computation of net cash/(net financial debt) for each of the
periods indicated:
€
millions |
|
Sept 30, 2016 |
Sept 30, 2015 |
Cash and cash
equivalents |
|
181.9 |
291.8 |
Plus Cash pool
balances with Casino presented in other current assets |
|
0.9 |
-- |
Less net current
financial debt |
|
(300.2) |
(372.6) |
Less
non-current financial debt |
|
(6.9) |
(7.7) |
Net cash/(Net financial debt) |
|
(124.3) |
(88.6) |
Adjusted
EBITDA
Adjusted EBITDA is calculated as
operating profit/(loss) from ordinary activities (operating EBIT)
before depreciation and amortization expense and share based
payment expenses. We have provided a reconciliation below of this
measure to operating profit/(loss) from ordinary activities
(operating EBIT) - see definition above - the most directly
comparable GAAP financial measure, for each of the periods
indicated.
€
millions |
|
Q3 2016 |
Q3 2015 |
Operating profit before restructuring, litigation,
gain/(loss) from disposal of non-current assets and impairment of
assets |
|
(1.1) |
(2.4) |
Excluding: Share based
payment expenses |
|
-- |
0.1 |
Excluding:
Depreciation and amortization |
|
5.1 |
5.2 |
Adjusted EBITDA |
|
3.9 |
2.9 |
Cash loss from
activities
Cash loss from activities is
calculated from entries on the cash flow statement in the following
way: net profit/(loss) for the last twelve months, plus
depreciation and amortization expense, plus/(income) expenses on
share-based payment plans, plus (gains)/losses on disposal of
non-current assets and impairment of assets, plus share of
(profits)/losses of associates, plus other non-cash items plus
financial expense, net, plus current and deferred tax
(gains)/expenses, plus income tax paid.
€
millions |
|
Sept 30, 2016 (LTM) |
|
|
|
Net profit/(loss) for
the period from continuing activities |
|
(82.1) |
Depreciation and
amortization expense |
|
22.5 |
(Income) expenses on
share-based payment plans |
|
0.1 |
(Gains) losses on
disposal of non-current assets and impairment of assets |
|
13.2 |
Share of (profits)
losses of associates |
|
-- |
Other non-cash
items |
|
0.5 |
Financial expense,
net |
|
28.0 |
Current and deferred
tax (gains) expenses |
|
15.7 |
Income tax
paid |
|
(3.6) |
Cash loss from activities |
|
(5.6) |
Annex F -
Erratum
Corrections to
Cnova annual report on Form 20-F for the year ended December 31,
2015
Cnova announces corrections to the following items
on page F-14:
-
Decrease of 2013 and 2014 net sales by
respectively €5.6 million (R$16.2 million) and €12.8 million (R$
40.1 million)
-
Decrease of 2013 and 2014 cost of sales and
fulfillment costs by respectively €0.2 million (R$0.6 million) and
€0.5 million (R$ 1.7 million)
-
Decrease of the related accounts receivable with
freight companies as of December 31, 2013 and 2014 by respectively
€4.7 million (R$15.4 million) and €11.9 million (R$38.4
million).
As corrected, these items read as follows:
-
Increase of 2013 net sales by €5.6 million
(R$16.2 million) and decrease of 2014 net sales by €12.8 million
(R$40.1 million)
-
Increase of 2013 cost of sales and fulfillment
costs by €0.2 million (R$0.8 million) and decrease of 2014 cost of
sales and fulfillment costs by €0.5 million (R$ 1.7 million)
-
Increase of the related accounts receivable with
freight companies as of December 31, 2013 by €4.7 million (R$15.4
million) and decrease of the related accounts receivable with
freight companies as of December 31, 2014 by €11.9 million (R$38.4
million).
Upcoming Event |
|
Wednesday, October 26, 2016 at 16:00 CEST |
Cnova Third Quarter
2016 Conference Call & Webcast |
|
Conference Call and Webcast connection details |
Conference Call Dial-In Numbers: |
Toll-Free: |
|
Brazil |
0 800 891 6221 |
France |
0 800 912 848 |
UK |
0 800 756 3429 |
USA |
1 877 407 0784 |
|
|
Toll: |
1 201 689 8560 |
|
|
Conference Call Replay Dial-In Numbers: |
Toll-Free: |
1 844 512 2921 |
Toll: |
1 412 317 6671 |
|
|
Available
From: October 26, 2016 at |
13:00 EST / 19:00 CEST |
To: November 2, 2016 at |
00:00 ET / 06:00 CET |
Replay Pin
Number: |
13646527 |
|
|
Webcast: |
http://public.viavid.com/index.php?id=121311 |
|
|
Presentation materials to accompany the call will be available at
cnova.com on October 26, 2016. |
|
|
An archive
of the conference call will be available for a limited time at
cnova.com following its conclusion. |
|
* Cnova
N.V.'s 3rd quarter
figures are not audited. Furthermore, as a result of the
Reorganization Agreement, Cnova Brazil is classified as a
discontinued activity as of January 1, 2015. The Reorganization
Agreement was approved by Via Varejo's minority shareholders on
September 12, 2016, and will be submitted for approval by Cnova
shareholders on October 27, 2016 at the
Company extraordinary general meeting. In the Company's 2015 and
2016 results disclosed in this press release, the reclassification
of Cnova Brazil has been reflected as a discontinued activity in
the consolidated income statement and as an asset held for sale in
the consolidated balance sheet as of September 30, 2016 in
accordance with IFRS 5. For information purposes, a summary
financial results analysis and selected activity metrics concerning
Cnova Brazil are presented on Page 4 and in Annex C.
For additional
information on how GMV, net sales, traffic, active customers,
number of items sold and available products are calculated, please
refer to footnotes on page 4.
* Beginning January 1, 2016, ICMS, the Brazilian indirect VAT
on the interstate sale of goods and services, is transitioning from
being 100% due in the state of the seller to being 100% due in the
state of the buyer. This has led to an estimated decrease in 3rd
quarter 2016 net sales at Cnova Brazil in the amount of
approximately R$ 66 million.
Cnova 3rd Quarter 2016 Financial
Results
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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