Casino's Cnova Announces Capital Increase Strategy
Groupe Casino-owned e-commerce group Cnova, the parent company of Cdiscount, has announced a capital increase project worth around €300 million in order to finance the acceleration of its growth strategy.
The project could be launched by the end of the year, subject to market conditions, the company said in a statement.
This capital increase could be accompanied by a placement of securities by certain existing shareholders, which would make it possible to increase the share of the free float. Casino will remain the majority shareholder of the company, Cnova said.
In April, Casino said it was studying strategic options for its subsidiary in order to raise funds through market transactions and investments in securities it holds.
For 2021, Cnova says it is targeting an EBITDA of €160 million, up 20% compared to 2020. By 2025, the group wants to achieve a business volume of over €12 billion, up from €4.2 billion in 2020.
In the first quarter of its financial year, Cnova saw its total gross merchandise value grow 11.8% to just over €1 billion, it said at the start of May. Total net sales were up 5.0% to €517.9 million.
Digital marketing revenues were up 43%, while Octopia, its turnkey marketplace solution for EMEA retailers and e-merchants, grew by 86%.
“The first quarter of 2021 confirmed the good dynamic recorded in 2020 and its relevant positioning, with strong GMV growth and improved profitability in a fast-evolving environment in Europe marked by strong and sustainable underlying trends: more digitalised sales and more home delivery," Emmanuel Grenier, Cnova CEO, commented at the time.
Casino recently announced that it was looking to expand its Cdiscount and GreenYellow operations.