HighCo: Q2 2024 Gross Profit
Aix-en-Provence, 18 July 2024
(6 p.m.)
HIGHCO: BUSINESS DECLINE IN Q2 2024
(GROSS PROFIT DOWN 1.6% LFL); STABLE ESTIMATED HALF-YEAR
EARNINGS; 2024 GUIDANCE REITERATED
Business decline in Q2 2024 in line with
expectations
- Q2 2024 gross
profit1 of €18.84 m, down 1.6%
LFL2.
- H1 2024 gross
profit1 of €37.7 m, down slightly by 0.6%
LFL2.
- Decline in
businesses in France (Q2 down 1.3% LFL; H1 unchanged LFL) and in
International businesses (Q2 down 4.1% LFL; H1 down 4.7% LFL).
2024 Half-year earnings: Forecast of
stable HPBIT3 and
operating margin3
Casino: ongoing talks
Additional investment in
RetailTech
2024 Guidance reiterated
- Drop in gross
profit of about 10%.
- Operating margin
of more than 15%.
|
Gross Profit
(€ m)1 |
2024 |
2023 LFL2 |
2024/2023
LFL2
change |
|
Q1 |
18.85 |
18.77 |
+0.5% |
|
Q2 |
18.84 |
19.15 |
-1.6% |
|
H1 |
37.70 |
37.92 |
-0.6% |
1 Limited audit by the Statutory Auditors
currently in progress.
2 Like for like: Based on a comparable scope and at constant
exchange rates (i.e. applying the average exchange rate over the
period to data from the compared period). Furthermore, in
application of IFRS 5 – Non-current Assets Held for Sale and
Discontinued Operations, the activities of High Connexion Italy
were reported as discontinued operations as of the fourth quarter
of 2023. For reasons of consistency, the data reported for the
first half of 2023 has been restated to account for the impact of
High Connexion Italy.
3 Headline PBIT: Profit before interest, tax and restructuring
costs. Operating margin: Headline PBIT/Gross profit.
Didier Chabassieu, Chairman of the Management
Board, stated, “HighCo’s performance in the first part of 2024
is in line with forecasts. The second quarter confirmed the growth
trend in the Activation division and the decline in the marketing
and communication consulting and ad-selling businesses. Based on
this half-year performance, along with the strong decline expected
in our ad-selling business over the second half of the year, due to
finalisation of the sale of Casino stores, we have maintained our
guidance for 2024.”
BUSINESS DECLINE IN Q2 2024 IN LINE WITH
EXPECTATIONS
Following a stable first quarter in 2024 (up
0.5% LFL), HighCo posted gross profit of €18.84 m,
showing a decline in Q2 2024 (down
1.6% LFL).
This business performance is due to:
- Sharp growth in the
Activation division (up 8.7%
LFL), due to the significant increase in the number of
coupons processed in France and the very positive trend in the
promotion management businesses;
- Stability in the
Mobile division (down 0.9% LFL),
resulting from further growth in SMS push notification activity and
a slowdown in Mobile consulting businesses;
- Expected decline in the
Retail Consulting & Advertising division
(down 15.1% LFL).
As a result, in H1 2024 the
Activation division (53.8% of the Group’s gross
profit) grew by 10.9%, while the
Mobile division (20.8% of the Group’s gross
profit) fell by 7.4% and the Retail
Consulting & Advertising division (25.5% of the
Group’s gross profit) also fell, by 14.2%.
Group revenue for H1 2024 came out at
€77 m.
Businesses in France
FRANCE
|
Gross Profit (€ m) |
2024/2023 LFL change
|
% Total gross profit
|
|
2024 |
2023 LFL |
|
Q1 |
16.52 |
16.30 |
+1.3% |
87.6% |
|
Q2 |
16.66 |
16.87 |
-1.3% |
88.4% |
|
H1 |
33.18 |
33.18 |
0% |
88.0% |
In France, Q2 2024 gross profit
fell by 1.3% to €16.66 m. This performance is the
result of strong processing activities for coupons
and other promotional offers but was
counter-balanced by the decline, as anticipated, in the
Mobile consulting and Retail Consulting & Advertising
divisions.
In H1 2024, business in France was
stable, accounting for 88% of the Group’s gross profit.
Trends in business performance are largely comparable between the
two first quarters of the year.
International businesses
INTERNATIONAL
|
Gross Profit (€ m) |
2024/2023 LFL change
|
% Total gross profit
|
|
2024 |
2023 LFL |
|
Q1 |
2.33 |
2.46 |
-5.2% |
12.4% |
|
Q2 |
2.18 |
2.28 |
-4.1% |
11.6% |
|
H1 |
4.52 |
4.74 |
-4.7% |
12.0% |
In International businesses,
Q2 2024 gross profit fell (down 4.1% LFL) to
€2.18 m.
In Belgium, gross profit fell by
4.9% due to the decline in coupon processing, which was
partially offset by the positive trend in traditional promotions
management.
Businesses in Spain showed growth (up 2.3%) and
accounted for 1.3% of the Group’s gross profit.
In H1 2024, International
businesses declined by 4.7% to €4.52 m, accounting
for 12% of the Group’s gross profit.
FORECAST OF STABLE 2024 HALF-YEAR EARNINGS
Based on the half-year closing in progress,
the Group forecasts:
- Stable headline
PBIT3 (H1 2023 restated:
€9.62 m);
- Stable operating
margin3 (H1 2023 restated:
25.4%).
The 2024 half-year earnings will be released on
Wednesday, 11 September after market close. A conference call
for financial analysts is scheduled for Thursday, 12 September
at 10 a.m.
CASINO: ONGOING TALKS
The decline in business with the Casino group reported in the
first half of the year is in line with forecasts.
In parallel, HighCo is continuing its discussions with Casino’s new
executive management to redefine the scope of collaboration for
2025 and 2026.
ADDITIONAL INVESTMENT IN RETAILTECH
HighCo announced that, on 24 June, it finalised the
acquisition of minority shares in the startup
RetailTech, whose SaaS platform
can be used by retailers to
digitise and centralise their promotional
processes. After purchasing an initial minority stake of
29% in April 2022, the Group increased its share ownership to
58%, giving it a controlling interest in the company. RetailTech,
until now accounted for as an associate, will be fully consolidated
within the Group as a result of the deal.
2024 GUIDANCE REITERATED
Based on its reported business activity in
Q2 2024 and its forecast of stable half-year earnings, the
Group reiterates its guidance for 2024:
- Decrease in gross profit of
about 10% (2023 gross profit: €74.35 m);
- Operating margin
(headline PBIT/gross profit) of more than 15%
(2023 operating margin: 22.1%).
About HighCo
As an expert marketing and
communication, HighCo supports brands and retailers in accelerating
the transformation of retail.
Listed in compartment C of Euronext Paris, and eligible
for SME equity savings plans (“PEA-PME”), HighCo has nearly
500 employees.
HighCo has achieved a Gold rating from EcoVadis,
meaning that the Group is ranked in the top 5% of companies in
terms of CSR performance and responsible
purchasing.
Your contacts
Cécile
Collina-Hue Nicolas
Cassar
Managing
Director Press
Relations
+33 1 77 75 65
06 +33
4 88 71 35 46
comfi@highco.com n.cassar@highco.com
Upcoming events
Publications take place after market
close.
2024 Half-year Earnings: Wednesday, 11 September
2024
Conference call on 2024 half-year earnings: Thursday, 12 September
2024 at 10 a.m.
Q3 and 9-month YTD 2024 Gross Profit: Wednesday, 16 October
2024
Q4 and FY 2024 Gross Profit: Wednesday, 22 January 2025
HighCo is a component stock of the indices
CAC® Small (CACS),
CAC® Mid&Small (CACMS),
CAC® All-Tradable (CACT),
Euronext® Tech Croissance (FRTPR) and
Enternext® PEA-PME 150
(ENPME).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
For further financial information and press releases, go
to www.highco.com.
This English
translation is for the convenience of English-speaking readers.
Consequently, the translation may not be relied upon to sustain any
legal claim, nor should it be used as the basis of any legal
opinion. HighCo expressly disclaims all liability for any
inaccuracy herein.
- HighCo CP T2 2024_FR_VDEF_EN
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