(CercleFinance.com) – The Cnova share posted one of the strongest gains on the Paris market on Monday morning following the publication of half-year results well received by investors.
The e-commerce group Cnova, parent company of Cdiscount and controlled by Casino, saw its Ebitda more than double compared to the first half of 2022, to 34 million euros against 14 million a year earlier.
In a press release, Cnova explains that it benefited from the attention paid to improving the profitability of direct sales, the growth of its advertising revenues and the plan to reduce its costs.
Cnova says it has accelerated its transition to a “more profitable” model by recording a sharp increase in its gross margin rate, which reached 29.7%, compared to 22.6% in the first half of 2022.
Free cash flow from continuing operations before financial expenses and other income and expenses amounted to -€183 million in the first half of 2023
The total volume of goods sold (GMV) fell by 14% on a comparable basis in a “still difficult” market, marked by a decline in the categories of technology products and household appliances.
Following this publication, the title gained more than 6% in a slightly bullish Parisian market (+0.4%). Since the beginning of the year, the stock market has gained 3% despite the serious difficulties encountered by Casino.
As of June 30, Cnova’s net financial debt amounted to 582 million euros.