HighCo: Half-Year 2024 Results
Aix-en-Provence, 11 September 2024
(6 p.m.)
HIGHCO: STABLE BUSINESS ACTIVITY,
EARNINGS AND PROFITABILITY IN H1 2024; GUIDANCE ADJUSTED FOR 2024
WITH EXPECTED DECLINE IN H2, AS FORECAST
H1 2024 business volumes in line with
expectations
- H1 2024 gross
profit of €37.7 m, with a slight decline of 0.6%
LFL1.
- Strong growth in
the Activation division (up 10.9% LFL), decline in the Mobile (down
7.4% LFL) and Consulting & Advertising (down 14.2% LFL)
businesses.
- Businesses in
France stable (0.0% change LFL) and decline in International
business (down 4.7% LFL).
Stable earnings and
profitability
- Headline
PBIT2 stable at €9.6 m (down 0.2%).
- Operating
margin2 of 25.5% (up 10 basis points).
- Recurring
operating income of €8.99 m, with a slight decrease of
1.2%.
- Stable adjusted
attributable net income3 at €6.22 m (up 0.9%).
- Adjusted earnings
per share (EPS)3 of €0.32, up 2.7%.
Solid financial position
- Operating cash
flow of €8.59 m (excluding IFRS 16), up by
€1.45 m.
- Net
cash4 excluding operating working capital of
€21.38 m at 30 June 2024, representing an increase
of €1.98 m compared to 31 December 2023.
Adjusted guidance for 2024
- Decrease
in gross profit of about 9%.
-
Operating margin of more than 16%.
(€ m) |
H1 2024 |
H1 2023 restated |
H1 2024 /
H1 2023 restated
Change |
|
Gross profit |
37.70 |
37.92 |
-0.6% |
|
Headline PBIT2 |
9.60 |
9.62 |
-0.2% |
|
Operating
margin2
(%) |
25.5% |
25.4% |
+10 bp |
|
Recurring operating income |
8.99 |
9.11 |
-1.2% |
|
Operational income |
9.23 |
9.13 |
+1.1% |
|
Attributable net income |
6.36 |
6.34 |
+0.3% |
|
Adjusted attributable net
income3 |
6.22 |
6.16 |
+0.9% |
|
Adjusted earnings per
share3 (in
€) |
0.32 |
0.31 |
+2.7% |
|
Operating cash flow (excluding IFRS 16) |
8.59 |
7.13 |
+€1.45 m |
|
Net cash4
excluding operating working capital |
21.38 |
19.39 |
+€1.98 m |
1 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. As a result, like-for-like data is equal to
restated data in 2023.
2 Headline PBIT: Profit before interest, tax and restructuring
costs. Operating margin: Headline PBIT/Gross profit.
3 Adjusted attributable net income: Attributable net income
excluding other operating income and expenses (H1 2024: income
of € 0.24 m; H1 2023: income of € 0.03 m) and excluding the
net after-tax income from assets held for sale and discontinued
operations (H1 2024: loss of € 0.10 m; H1 2023: profit of
€ 0.16 m);
Adjusted earnings per share based on an average number of shares of
19,736,546 at 30 June 2024 and 20,084,698 at 30 June
2023.
4 Net cash (or net cash surplus): Cash and cash equivalents less
gross current and non-current financial debt at the end of the
period.
Didier Chabassieu, Chairman of the Management
Board, stated, “HighCo is posting solid half-year results in
line with expectations, thanks to the strength of the Activation
division. The Group will maintain profitability of more
than 16% in 2024, despite the decline in business due to
Casino in the second half.”
FINANCIAL PERFORMANCE IN H1
2024
Business volumes in line with
expectations
In the first half of 2024, the Group’s
businesses fell slightly by 0.6% to €37.7 m,
with:
- Sharp growth in the
Activation division (up 10.9%
LFL; 53.8% of the Group’s gross profit) due to the
significant increase in the number of coupons processed in France
(up 28%) and the very positive trend in promotion management;
- Decline in the
Mobile division (down 7.4% LFL;
20.8% of the Group’s gross profit), with growth in the share
of SMS push notifications and a slowdown in Mobile consulting
businesses;
- Decline of the Consulting
& Advertising division as forecast (down 14.2%
LFL; 25.5% of the Group’s gross profit).
In France, H1 2024 gross profit
remained stable at €33.18 m. France represented 88%
of the Group’s gross profit over the first half of the year. 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 Consulting &
Advertising divisions.
In International businesses,
H1 2024 gross profit was down 4.7% LFL to
€4.52 m. International activity accounted for 12% of
the Group’s gross profit over the first half of the year.
In Belgium, gross profit fell by
5.3% to €4.02 m due to the decline in coupon processing, which
was partially offset by the positive trend in traditional
promotion management.
Businesses in Spain showed slight growth of 0.7%
to €0.50 m and accounted for 1.3% of the Group’s gross
profit.
Stable earnings and
profitability
Headline PBIT was stable at €9.6 m
in H1 2024 (down 0.2%), with growth in France (up 3%
to €8.93 m) through sound cost control and a decline in
International business (down 29.6% to €0.67 m).
H1 2024 operating margin
(headline PBIT/gross profit) showed slight growth
of 10 basis points to 25.5%.
After deducting restructuring costs, which were
slightly higher (H1 2024: €0.6 m; H1 2023 restated:
€0.51 m), recurring operating income amounted to
€8.99 m, representing a slight decrease of 1.2%
(H1 2023 restated: €9.11 m).
H1 2024 operating income rose
slightly by 1.1% to €9.23 m (H1 2023
restated: €9.13 m). This increase is attributable to other
operating income and expenses totalling €0.24 m, mainly as a
result of the fair value remeasurement of the 29.2% stake
previously owned in RetailTech, set at €0.18 m.
Financial income in H1 2024
totalled €0.87 m, amounting to a strong increase of
€0.51 m, mainly due to income from cash (€0.99 m).
The tax expense remained stable at €2.66 m
in H1 2024, coming out to an effective tax rate of 26.9%. This
equals a decrease of 130 basis points compared with the
restated figure for H1 2023.
Assets held for sale and discontinued operations
showed a loss of €0.27 m in the first half of the year
(H1 2023 restated: profit of €0.34 m) mainly due of the
discontinuation of businesses in Italy.
Adjusted attributable net income rose
slightly by 0.9% to €6.22 m (H1 2023 restated:
€6.16 m). The reported figure emerged stable at €6.36 m
(H1 2023: €6.34 m).
The Group recorded adjusted EPS of €0.32
for the half-year, up 2.7% from the restated figure for
H1 2023 (€0.31 per share).
Solid financial position
Cash flow amounted to €10.26 m, up
€1.61 m from H1 2023. Excluding the impact of IFRS 16 –
Leases, cash flow amounted to €8.59 m, up
€1.45 m from H1 2023.
Net cash at 30 June 2024 amounted to
€68.68 m, up €2.55 m since 31 December 2023.
Excluding operating working capital (€47.3 m at 30 June
2024), net cash came to €21.38 m, up by
€1.98 m with respect to 31 December 2023.
H1 2024 HIGHLIGHTS
Market changes and impacts for HighCo, partner to brands
and retailers
After two years of high
inflation, price remains a critical factor in
consumers’ purchasing decisions. The deflation recorded on food
products since May (Circana – August 2024) has not been enough
to change the behaviour of consumers, who have
kept their reduced spending habits.
They choose retailers that offer the most aggressive pricing
policies and the best deals. In fact, 71% of the
French population say that they buy more products at reduced prices
(Ipsos study – June 2024). The situation is driving the growth of
HighCo’s promotions businesses in France.
As a result, the promotions businesses within
the Activation division show a strong 28% increase
in the volume of discount coupons processed in the
first half of 2024.
HighCo supports brands, in particular its client Procter &
Gamble, which is highly active in cashback offers
and enhancing its “consumer knowledge”.
With the HighCo Merely platform, the Group also manages
personalised promotions for Carrefour. The promising
results of this programme are opening new possibilities for
collaboration.
In digital discount coupons, HighCo’s innovations also contribute
to the strong performance of the Activation division:
- The volume of retailer
e-coupons processed by HighCo in the first half of 2024
increased by 110% compared with H1 2023;
- The implementation of
universal mobile discount coupons at Monoprix
stores is confirmed before the end of the second half of the
year.
In addition, following the sale of its
hypermarkets and supermarkets, Casino group is
refocusing on convenience retail and has announced a stimulus plan
structured around three main actions:
- reduced prices
- improved services
- renovated stores.
As expected, the reduced number of Casino group
stores will significantly impact HighCo’s business in the second
half of the year. HighCo is continuing its discussions initiated
with Casino group’s new executive management to define a new
scope of collaboration for 2025 and 2026.
CSR strategy: EcoVadis Gold medal renewed
HighCo announced that its “Gold”
ranking, awarded by EcoVadis for its CSR performance and
responsible purchasing, was renewed in July 2024 with an
overall score of 73 out of 100. This detailed assessment measures
the maturity of CSR policies and actions taken based on
21 criteria grouped into four themes: Environment,
Labour and Human Rights, Ethics, and Sustainable
Procurement. The renewed Gold medal means that
HighCo remains among the leading 5% of
top-performing companies assessed using the new, stricter EcoVadis
methodology.
The Group is committed to continuing its
sustainability actions, with the development of its new strategic
roadmap to 2030: “Impact 2030”.
ADJUSTED GUIDANCE FOR 2024
Based on its results reported for H1 2024
and forecast decline in business activity in H2 2024, the
Group has adjusted its 2024 guidance as
follows:
- Gross profit
revised from “a decline of about 10%” to “a decline of
about 9%” (2023 gross profit: €74.35 m);
- Operating margin
(headline PBIT/gross profit) revised from “more than 15%” to
“more than 16%” (2023 operating margin:
22.1%).
A conference call with analysts will
take place on 12 September 2024 at 10:00 a.m. (CET).
The presentation will be available at the beginning of the meeting
on the Company’s website (www.highco.com) under Investors >
Financial Information > Financial analysts meetings.
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.
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 Résultats S1 2024_FR_VDEF_EN
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