Highco: Q2 2023 Gross Profit
Aix-en-Provence, 19 July 2023 (6 p.m.)
HIGHCO: STABLE BUSINESS ACTIVITY IN
Q2/H1 2023 (GP up 0.1%/0.3%); STABLE ESTIMATED HALF-YEAR
EARNINGS
Slight business growth in Q2/H1 2023
- Q2 2023 gross
profit1 of €19.53 m, up 0.1% on a reported basis and
LFL2.
- H1 2023 gross
profit1 of €38.43 m, up 0.3% on a reported basis and
LFL2.
- Growth in digital
businesses (Q2 up 5.6% LFL; H1 up 3.4% LFL) and decline in offline
businesses (Q2 down 10.1% LFL; H1 down 5.5% LFL).
- Slight business
growth in France (Q2 up 0.3% LFL; H1 up 0.6% LFL) and less
significant decline in International businesses (Q2 down 1% LFL; H1
down 1.7% LFL).
2023 Half-year Earnings: Forecast of
stable HPBIT3 and operating
margin3
Current situation with the retail market
in France
2023 Guidance reiterated
Gross Profit (in € m)1 |
2023 |
2022 |
2023/2022 Change |
Q1 |
18.90 |
18.80 |
+0.5% |
Q2 |
19.53 |
19.51 |
+0.1% |
H1 |
38.43 |
38.31 |
+0.3% |
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).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 start to the year was in line with its
expectations, with slight business growth (up 0.3%), and
anticipates steady profitability levels.
The M&A deals under way in the retail
industry in France are compounded with an already turbulent
environment due to the sustained inflation in food prices. The
current climate is complex for all market players. The Group’s
staff are all hard at work to support their customers.”
SLIGHT BUSINESS GROWTH IN Q2/H1 2023
DRIVEN BY DIGITAL
Following the slight growth in Q1 2023 (up 0.5%
LFL), HighCo showed, as anticipated, virtually stable
business growth in Q2 2023 with gross profit of €19.53 m
(up 0.1% LFL).
Digital was up 5.6% driven in
Q2 by paperless promotional offers. Meanwhile, offline businesses
fell sharply, by 10.1%, over the quarter.
As a result, the Group’s businesses
showed slight growth of 0.3% in H1 2023, to
€38.43 m. With growth of 3.4% over the first half of
the year, Digital benefited especially from the strength of SMS and
push notification activities (up 24% in volume). The share of
digital businesses in the Group’s total gross profit increased from
65.3% in H1 2022 to 67.3% in H1 2023.
Group revenue for H1 2023 amounted to
€76.4 m.
Slight business growth in France and less significant
decline in International
business
FRANCE |
Gross Profit (in € m) |
2023/2022 Change |
% Total gross profit |
2023 |
2022 |
Q1 |
16.30 |
16.14 |
+1.0% |
86.3% |
Q2 |
17.10 |
17.05 |
+0.3% |
87.5% |
H1 |
33.40 |
33.19 |
+0.6% |
86.9% |
In France, gross profit rose slightly,
by 0.3%, to €17.1 m in Q2 2023.Benefiting from a
favourable comparative base (Q1 2022 and Q2 2022 up 6.9%
and up 1.4%, respectively), digital businesses grew by 7.4%
in Q2 2023. Offline businesses, however (Q1 2022
and Q2 2022 down 9.1% and up 7.2%, respectively), showed a
sharp decline of 13.2% over the quarter.
H1 2023 showed slight growth of
0.6%, with France accounting for 86.9% of the Group’s
gross profit in the first half of the year. Digital
businesses rose by 4.6% in the first half of the year, and
their share increased significantly to 68.5% of gross profit.
Accounting for more than one-quarter of business in France, Mobile
activities remained stable over the first half of the year (down
0.5%), against a challenging 2022 comparative base (up 19.7% in
H1 2022). Offline businesses were down by 7% in France in the
first half of the year.
INTERNATIONAL |
Gross Profit (in € m) |
2023/2022 Change |
% Total gross profit |
2023 |
2022 |
Q1 |
2.59 |
2.65 |
-2.3% |
13.7% |
Q2 |
2.43 |
2.46 |
-1.0% |
12.5% |
H1 |
5.03 |
5.11 |
-1.7% |
13.1% |
The drop in International business in Q2
2023 (down 1%) was less significant than
in recent
quarters, and gross
profit totalled €2.43 m. In Belgium,
as anticipated, gross profit fell slightly by 0.8%. After several
years of decline, the traditional promotion management business
grew over the period.Business in Other countries
(Spain and Italy) continues to hold up (down 1.8%
against a comparative base of a 56.8% increase in Q2 2022) and
accounts for 2% of the Group’s gross profit.
In H1 2023, International business
fell 1.7% to €5.03 m, accounting for 13.1% of the
Group’s gross profit. Down 4.5%, the share of Digital in
International businesses represented 59.3% of gross profit.
FORECAST OF STABLE 2023 HALF-YEAR EARNINGS
Based on the half-year closing in progress,
the Group forecasts:
- Stable headline
PBIT3 (H1 2022: €9.97 m);
- Stable operating
margin3 (H1 2022: 26%).
The 2023 half-year earnings will be released on
Wednesday, 13 September after market close. A conference call
for financial analysts is scheduled for Thursday, 14 September
at 11 a.m.
CURRENT SITUATION WITH THE RETAIL MARKET
IN FRANCE
Much has been happening on the French retail
market since the beginning of the year: price war, negotiations
with consumer goods manufacturers, changes in consumption and
shopping habits, mergers, alliances, financial position, and so
forth.
HighCo is carefully watching to see how the
situation with its long-standing client Casino will play out. So
far, the Group has not felt an impact from this situation on its
business or on its financial statements for the half-year ended
30 June 2023. HighCo will closely follow this case and any
decisions made over the next few weeks, so as to anticipate any
potential impacts on the Group in the short and medium term.
2023 GUIDANCE REITERATED
Based on its reported business activity in
Q2 2023 and its forecast of stable half-year earnings, the
Group reiterates its guidance for 2023:
- Stable gross
profit (2022 gross profit: €77.16 m);
- Operating margin
(headline PBIT/gross profit) of approximately 21%
(2022 operating margin: 21%).
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
CassarManaging
Director Press
Relations+33 1 77 75 65
06 +33
4 88 71 35
46comfi@highco.com n.cassar@highco.com
Upcoming events
Publication takes place after market
close.
2023 Half-year Earnings: Wednesday, 13 September
2023Conference call on half-year earnings: Thursday, 14 September
2023 at 11 a.m.Q3 and 9-month YTD 2023 Gross Profit:
Wednesday, 18 October 2023Q4 2023 Gross Profit: Wednesday, 24
January 2024
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 2023_FR_VDEF_EN
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