Earnings Release • Jul 12, 2013
Earnings Release
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| Gross profit $(in \in M)$ |
2013 | 2012 | Change N/N-1 | Change $N/N-1$ LFL 2 |
|---|---|---|---|---|
| Q1 | 17.49 | 18.01 | $-2.9%$ | $-2.8%$ |
| Q2 | 18.99 | 18.85 | $+0.7%$ | $+1.0%$ |
| Total H1 | 36.48 | 36.87 | $-1.0%$ | $-0.9%$ |
1 The Statutory Auditors are currently carrying out their limited audit.
2 Like-for-like and at constant exchange rates (LFL)
Didier Chabassieu, Chairman of the Management Board, stated: "Q2 was better than initially anticipated. The Group returned to growth in the second quarter. Our digital and international businesses made this turnaround possible. We confirm our medium-term targets and continue to invest in ensuring and strengthening long-term growth."
Q2 2013 gross profit amounted to €18.99 M, up 1% on a like-for-like basis. This return to growth is part of an improving sequential trend: H1 2012 down 10.7%, H2 2012 down 4.1%, Q1 2013 down 2.8% and Q2 2013 up 1%.
In France, Q2 2013 gross profit stood at €10.61 M, up 1% on a like-for-like basis, following a 4.4% drop in the first quarter.
In the International businesses, Q2 2013 gross profit came out at $\epsilon$ 8.38 M, up 1% on a like-forlike basis. This performance results from strong growth in new countries (16.2% in Spain, United Kingdom and Central Europe), which offset the 3.9% drop in Belgium.
H1 2013 gross profit amounted to €36.48 M, down 0.9% on a like-for-like basis.
In France, H1 2013 gross profit came to €20.34 M, down 1.6% on a like-for-like basis.
In the International businesses, H1 2013 gross profit came out at $\epsilon$ 16.14 M, up 0.1% like-for-like (growth of 11.4% in Spain, United Kingdom and Central Europe, decline of 3.1% in Belgium).
The DATA businesses (Coupons, Promo & Clearing) grew in the first half of the year while the SHOPPER businesses (In-store Media & Communication) declined, particularly in France.
The macroeconomic environment remains challenging in France, with a drop of 0.6% in advertising expenditure for the retail sector and 6% for food advertisers (source: Kantar Media, AdEx Report, 17 June 2013). More generally, Zenith Optimedia forecasts a 0.7% drop in communication spending in Northern and Central Europe for 2013.
HighCo confirmed its target of doubling the proportion of digital businesses in its gross profit from 25% at end-2012 to 50% in the medium term by digitising in-store media and coupons:
Launch of the system used to download coupons onto the customer's loyalty card ("load to card") with smartphones and digital terminals in Leclerc stores;
Strong growth in the number of SMS sent from the High Connexion multi-channel platform.
The Group maintains its target of doubling the proportion of new countries in its gross profit from 10% at end-2012 to 20% in the medium term:
Subsidiary in Russia opened in Q1 and the in-store advertising media contract won with leading retailer Magnit (155 hypermarkets in Russia);
Investment in a 30% stake in Integral Shopper (coupons and promotions) in the United Arab Emirates.
As announced in the press release of 26 June 2013:
Didier Chabassieu has been appointed Chairman of the Management Board to succeed Richard Caillat.
Richard Caillat has been appointed Chairman of the Supervisory Board to succeed Frédéric Chevalier.
Frédéric Chevalier has acquired the status of Chairman and Founder.
Based on the current consolidation of the financial statements:
Headline PBIT (profit before interest, tax and restructuring costs) is expected to come out slightly higher than €6 M, down by about 20% on H1 2012 due to greater investment (OPEX) in the digital businesses.
The Group's financial position remains healthy with net cash of more than $\epsilon$ 27 M at 30 June 2013, remaining stable compared with the end of 2012.
The Group forecasts continued business growth for the second half of the year.
Boasting dual "Connect SHOPPER & Process DATA" expertise and operating in 15 countries in Europe and the Middle East, HighCo provides its brand and retailer clients with offline and digital solutions to adapt to the new shopping dynamics:
COUPONS, PROMO & CLEARING: coupon issuing and processing, design and management of promotional campaigns, data analysis.
IN-STORE MEDIA & COMMUNICATION: design, marketing and production of campaigns.
HighCo has nearly 900 employees and is listed in compartment C of NYSE Euronext Paris and in the GAIA Index, a selection of 70 responsible Small and Mid Caps.
Olivier Michel Managing Director +33 1 77 75 65 06 [email protected]
Publications shall be released after market close
2013 Half-year Earnings: Monday 26 August 2013 Q3 and 9-month YTD 2013 Gross Profit: Tuesday 22 October 2013 FY 2013 Gross Profit: Tuesday 28 January 2014
Half-year Earnings: Tuesday, 27 August 2013 at 2.30 pm (Centre Affaires Victoire, Paris).
HighCo is a component stock of the following indices: CAC® Small (CACS), CAC® Mid&Small (CACMS) and CAC® All-Tradable $(CACT)$ 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.
Cynthia Lerat Press Relations +33 1 77 75 65 16 [email protected]
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