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HighCo
Earnings Release • Oct 20, 2021
1402_10-q_2021-10-20_b4defec8-a902-49ec-b3f6-e37a722aa169.pdf
Earnings Release
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Aix-en-Provence, 20 October 2021 (6.00 p.m.)
HIGHCO: GROWTH IN Q3 2021 IN LINE WITH EXPECTATIONS (GP: UP 1.1%); 2021 GUIDANCE CONFIRMED
Q3 2021 business growth driven by Digital
- Q3 2021 gross profit1 of €18.72 M, up 1.1% on a reported basis and LFL2 .
- 9-month 20211 gross profit of €56.52 M, an increase of 3.7% on a reported basis and LFL2 .
- Digital businesses showing solid growth over the quarter (Q3 up 4.5% LFL, 9-month YTD up 2.6% LFL).
- Slight business growth in France (Q3 up 0.6% LFL; 9-month YTD up 3.4% LFL) and a positive trend in International businesses (Q3 up 4.6% LFL; 9-month YTD up 5.5% LFL).
2021 guidance confirmed
| Gross Profit (in € M) | 2021 | 2020 LFL2 | 2021/2020 LFL2 change |
|---|---|---|---|
| Q1 | 18.59 | 18.19 | +2.2% |
| Q2 | 19.21 | 17.78 | +8.1% |
| Q31 | 18.72 | 18.52 | +1.1% |
| 9-month total1 | 56.52 | 54.49 | +3.7% |
1 Unaudited data.
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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, Shelf Service businesses were reported as discontinued operations as of the fourth quarter of 2020. For reasons of consistency, the data reported for the first nine months of 2020 has been restated to account for the impact of Shelf Service. As a result, like-for-like data is equal to restated data for the first nine months of 2020.
3 Adjusted headline profit before interest and tax: Recurring operating income before restructuring costs and excluding the cost of performance share plans. Adjusted operating margin: Adjusted headline PBIT/Gross profit.
Didier Chabassieu, Chairman of the Management Board, stated, "Driven by its digital businesses (up 4.5%), HighCo posts a third quarter in line with expectations. Digital is supported by the strong growth in mobile businesses (up 6.4%) and now accounts for more than two-thirds of our total business. Given this good performance and sound cost control, we can expect slight business growth in the fourth quarter and confirm our guidance for 2021 operating margin."
Q3 2021 BUSINESS GROWTH DRIVEN BY DIGITAL
After a healthy H1 2021 (up 5.1% like for like), HighCo continued its growth trend in Q3 2021 and posted a 1.1% increase in gross profit to €18.72 M, in line with expectations.
This growth was mainly driven by:
- Mobile businesses, which remained on an upward trend (up 6.4%);
- Volumes of coupons cleared, which continued to surge (up 30%), especially thanks to paperless clearing (up 41%);
- Strong business in Belgium (up 4.4%).
Digital business grew 4.5% like for like in Q3 2021, accounting for 70.5% of the Group's gross profit, continuing their positive trend. Meanwhile, offline businesses fell 6.2% over the quarter.
As a result, the Group's businesses were up 3.7% over the first nine months of 2021 to €56.52 M. This growth was mainly driven by: growth in Mobile businesses (up 7%), higher volumes of coupons cleared (up 21%) and good performance in Belgium (up 5.7% like for like). Now accounting for 66.4% of HighCo's businesses, Digital rose 2.6% over the period.
| FRANCE | Gross Profit (in € M) | 2021/2020 | ||
|---|---|---|---|---|
| 2021 | 2020 LFL | LFL change | % Total gross profit | |
| Q1 | 15.98 | 15.30 | +4.5% | 86.0% |
| Q2 | 16.50 | 15.66 | +5.4% | 85.9% |
| Q3 | 16.30 | 16.21 | +0.6% | 87.1% |
| 9-month total | 48.79 | 47.16 | +3.4% | 86.3% |
France: slight business growth
In France, Q3 2021 gross profit grew slightly, by 0.6% to €16.3 M. Digital businesses grew 5.2%, supported by Mobile and the sharp rise in the volumes of digital coupons issued, especially on Click & Collect websites. Quarterly business activity was impacted by the 9.5% decline in offline businesses.
For the first nine months of 2021, business was up 3.4%, with France accounting for 86.3% of the Group's gross profit. Digital businesses grew 2.3%, and their share represented 67.1% of gross profit. Growth in Digital remained limited due to a less favourable comparative base (better resilience of digital businesses in 2020).
International: positive business activity
| INTERNATIONAL | Gross Profit (in € M) | 2021/2020 | ||
|---|---|---|---|---|
| 2021 | 2020 LFL | LFL change | % Total gross profit | |
| Q1 | 2.61 | 2.90 | -10.1% | 14.0% |
| Q2 | 2.71 | 2.12 | +27.8% | 14.1% |
| Q3 | 2.42 | 2.31 | +4.6% | 12.9% |
| 9-month total | 7.74 | 7.33 | +5.5% | 13.7% |
International gross profit for Q3 2021 rose 4.6% like for like to €2.42 M, confirming the recovery observed in Q2. This business growth came mainly from Belgium (up 4.4%), where the volume of coupons cleared rose sharply. Business in other countries showed healthy growth of 7%.
For the first nine months of the year, International businesses grew 5.5% to €7.74 M, accounting for 13.7% of the Group's gross profit. Digital grew 4.2% and accounted for 61.5% of gross profit.
2021 GUIDANCE CONFIRMED
With its financial performance in Q3 in line with expectations, the Group confirms its guidance for 2021:
- Slight growth in gross profit in the second half and fourth quarter (Q4 2020 gross profit: €19.67 M; H2 2020 gross profit: €38.19 M; FY 2020 gross profit: €74.16 M);
- Adjusted operating margin (adjusted headline PBIT3 /gross profit) of more than 19% (2020 adjusted operating margin: 16.4%).
About HighCo
As an expert in data marketing and communication, HighCo continuously innovates to work with brands and retailers in meeting the retail challenges of tomorrow.
Listed in compartment C of Euronext Paris, and eligible for SME equity savings plans ("PEA-PME"), HighCo has nearly 600 employees and since 2010 has been included in the Gaia Index, a selection of 70 responsible Small and Mid Caps.
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Cécile Collina-Hue Cynthia Lerat Managing Director Press Relations +33 1 77 75 65 06 +33 1 77 75 65 16 [email protected] [email protected]
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Q4 and FY 2021 Gross Profit: Wednesday, 19 January 2022
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.