Earnings Release • Aug 27, 2014
Earnings Release
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INTELLIGENT MARKETING SOLUTIONS
Q2 gross profit up 1.3% like-for-like1 and H1 gross profit of €36.08 M, up 1.1% like-for-like1
Like-for-like1 increase of 20.5% in digital businesses, which represent 32.2% of gross profit (28.3% at end 2013)
| $(in \in M)$ | H1 2014 | H1 2013 5 | H1 2014/H1 2013 Change |
|---|---|---|---|
| Gross profit | 36.08 | 35.15 | +2.6% based on actual data $(+1.1\%$ LFL 1 ) |
| Headline $PBIT2$ | 6.94 | 6.10 | $+13.8%$ |
| Operational income | 7.00 | 5.66 | $+23.7%$ |
| Operating margin (%) (HPBIT/GP) |
19.2% | 17.3% | $+190$ bps |
| Net income | 4.42 | 1.57 | x 2.8 |
| Adjusted net income 3 | 4.42 | 3.54 | $+24.9%$ |
| Cash flow | 5.60 | 5.27 | $+6.3%$ |
| Net cash 4 | 28.71 | $25.45^{6}$ | $+€3.26$ M |
1 Like for like (LFL): Based on a comparable scope, including the acquisition of Milky and at constant exchange rates. All like-for-like data in this document are unaudited.
2 Headline PBIT: Profit before interest, tax and restructuring costs.
3 H1 2013 adjusted for the €1.97 M impairment of Mediastay shares.
4 Net cash (or net cash surplus): Cash and marketable securities less gross current and non-current financial liabilities.
5 As a result of the first application of IFRS 11 "Joint Arrangements", the POS Media (Central Europe) and RMT (France) businesses have been accounted for using the equity method since 1 January 2014. Prior to that, the proportionate method had been applied. In consequence of which the previous year financial data have been
restated accordingly.
6 At 31 December 2013, in application of IFRS 11.
Didier Chabassieu. Chairman of the Management Board, stated: "The Group attained its top objective of continuing its growth in the first half of the year, while profitability also improved with net income up 24.9%. This growth was driven by the excellent performance of our Digital businesses, which were up 20.5%. The Group has launched new innovative solutions, forged exclusive partnerships with leading digital companies, made acquisitions and invested in start-ups. We have to accelerate further to meet our goal of generating 50% of gross profit in Digital."
After like-for-like growth of 0.8% in Q1, business grew 1.3% like for like in Q2, representing the fifth consecutive quarter of arowth.
H1 2014 gross profit totalled C6.08 M, up 1.1% like for like (up 2.6% based on actual data). In France, business growth continued, with a like-for-like increase of 3.7%. International business was down 2.6% like for like in H1 2014, falling 2.3% in Belgium and 4.3% in Spain and the United Kingdom.
Profitability improved with a 13.8% rise in headline PBIT to €6.94 M in H1 2014. Excluding the non-recurring provision of €0.50 M in H1 2013, headline PBIT increased 5.2% in H1 2014. As a result, operating margin rose 190 bps to 19.2% in H1 2014 versus 17.3% in H1 2013.
Headline PBIT increased 21.3% in France, and 7.2% excluding the non-recurring provision of €0.50 M in H1 2013.
Headline PBIT rose 1.6% internationally resulting from the sound management of operating costs.
Net income attributable to equity owners of the parent came out at $64.42$ M, up 24.9% adjusted for the exceptional impairment of €1.97 M recognised in H1 2013. Net income benefited from a decrease in restructuring costs (€0.09 M in H1 2014 versus €0.44 M in H1 2013) and a drop in the effective tax rate.
HighCo delivered an EPS of 40.42 per share in H1 2014, up 25.0% and 26.4% on a diluted basis, compared to H1 2013 adjusted.
HighCo's financial structure remains strong with net cash of €28.71 M, up €3.26 M compared with 31 December 2013. Cash flow amounted to €5.60 M in H1 2014 and grew 6.3% on H1 2013. Net working capital resources rose €2.12 M to €39.66 M, mainly generated by the coupon clearing businesses.
Gross profit in Digital soared 20.5% on a like for like basis in H1 2014. As a result. Digital represented more than 32% of the Group's gross profit in H1 2014 (28% at end-2013). The Group aims to generate 50% of its gross profit in Digital.
The share of International business (Belgium, Spain and the United Kingdom) remained stable at 40% of the Group's gross profit in H1 2014. The Group aims to generate 50% of its gross profit internationally.
HighCo confirmed the guidance announced at end-March for 2014:
A conference call with analysts will take place on Thursday, 28 August at 10 am Paris Time. The presentation will be available online on the Company's website www.highco.com.
HighCo offers brands and retailers Intelligent Marketing Solutions to influence shopper behaviour with the right deal at the right time and on the right channel.
Operating in 15 countries, HighCo has nearly 900 employees. HighCo is listed in compartment C of NYSE Euronext Paris and in the Gaïa Index, a selection of 70 responsible Small and Mid Caps.
INTELLIGENT MARKETING SOLUTIONS
Your contacts
Olivier Michel Managing Director +33 1 77 75 65 06 [email protected] Aimy Guez Press Relations +33 1 77 75 65 33 [email protected]
Publications take place after market close.
Q3 and 9-month YTD 2014 Gross Profit: Tuesday, 28 October 2014 Q4 and FY 2014 Gross Profit: Tuesday, 27 January 2015
HighCo is a component stock of the 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.
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