Cnova (CNV) Q1 2024 TU earnings summary

Executive summary

• EBITDA after rents grew by 35.7% year-over-year, reflecting a shift to a more profitable model.

• Free cash flow improved by €49m compared to 1Q23, driven by operational efficiency and business model transformation.

• Marketplace GMV share reached 63.8%, up 7.1pts year-over-year, despite a 12.3% decline in overall GMV.

• Services revenues rose 4.2% to €77m, now representing 31.7% of net sales.

• B2B activities, especially Octopia and C-Logistics, saw strong growth, with C-Logistics B2B revenues tripling year-over-year.

Financial highlights

• Total GMV was €605.3m, down 12.3% like-for-like from 1Q23.

• Net sales declined 20.6% like-for-like to €243.4m, mainly due to reduced direct sales and lower marketing spend.

• Gross margin rate improved by 5.3pts year-over-year.

• EBITDA after rents increased to €7.0m from €5.1m, a 35.7% rise.

• Free cash flow improved from -€121.2m to -€71.9m.

Outlook and guidance

• Continued focus on profitable growth through marketplace expansion, B2B services, and operational efficiency.

• Ongoing development of CSR strategy, including sustainable products and reduced delivery emissions.