HighCo: Q3 2021 gross margin

Aix-en-Provence, 20 October 2021 (6:00 p.m.)

HIGHCO: GROWTH IN Q3 2021 IN LINE WITH EXPECTATIONS (GP: +1.1%); 2021 CONFIRMED ORIENTATION

Business growth in Q3 2021 driven by Digital

  • Q3 2021 gross margin1 of € 18.72 million, up 1.1% as reported and LFL2.

  • 9 months 20211 gross margin of € 56.52m, up 3.7% based on reported figures and LFL2.

  • Digital companies posted solid growth over the quarter (Q3 up 4.5% LFL, 9-month YTD up 2.6% LFL).

  • Slight growth in activity in France (Q3 + 0.6% LFL; YTD 9 months + 3.4% LFL) and positive trend internationally (Q3 + 4.6% LFL; YTD 9 months + 5.5 % LFL).

2021 target confirmed

Gross margin (in € m)

2021

2020 LFL2

2021/2020
LFL2 cash

T1

18.59

18.19

+ 2.2%

T2

19.21

17.78

+ 8.1%

T31

18.72

18.52

+ 1.1%

9 months total1

56.52

54.49

+ 3.7%

1 Unaudited data.
2 At constant scope: At comparable scope and at constant exchange rates (ie by applying the average exchange rate for the period to the data for the period compared).
In addition, in accordance with IFRS 5 – Non-current assets held for sale and discontinued operations, Shelf Service activities have been classified as discontinued operations from the fourth quarter of 2020. For reasons of consistency, the data reported for the first nine months of 2020 has been restated to reflect the impact of off-the-shelf service. As a result, comparable data is equal to restated data for the first nine months of 2020.
3 Adjusted current result before interest and taxes: Current operating result before restructuring charges and excluding the cost of performance share plans. Adjusted operating margin: RAB / Adjusted gross profit.

Didier Chabassieu, Chairman of the Management Board, declared: “Driven by its digital activities (+ 4.5%), HighCo posted a third quarter in line with expectations. Digital is supported by strong growth in mobile activities (+ 6.4%) and now represents more than two-thirds of our total activity. Given this good performance and good cost containment, we can expect a slight growth in activity in the fourth quarter and confirm our 2021 operating margin forecast.

Q3 2021 DIGITAL ACTIVITY GROWTH

After a healthy H1 2021 (+ 5.1% like-for-like), HighCo continues its growth momentum in Q3 2021 and posts a gross margin up by 1.1% to € 18.72 million, in line with expectations.
This growth is mainly driven by:

  • Mobile businesses, which remain on an upward trend (+ 6.4%);

  • Volumes of coupons deleted, which continues to grow (+ 30%), in particular thanks to dematerialization (+ 41%);

  • Strong activity in Belgium (up 4.4%).

Digital activity grew by 4.5% like-for-like in Q3 2021, representing 70.5% of the Group’s gross margin, continuing their positive trend. Meanwhile, offline businesses fell 6.2% in the quarter.

Therefore, the Group’s activities are up 3.7% over the first nine months of 2021 to € 56.52 million. This growth is mainly driven by: the growth of the Mobile activities (+ 7%), the increase in the volumes of cleared coupons (+ 21%) and the good performance of Belgium (+ 5.7% like-for-like). Now representing 66.4% of HighCo’s activities, Digital grew by 2.6% over the period.

France: slight growth in activity

FRANCE

Gross margin (in € m)

2021/2020
LFL change

% Total gross profit

2021

2020 LFL

T1

15.98

3:30 p.m.

+ 4.5%

86.0%

T2

16.50

15.66

+ 5.4%

85.9%

T3

4:30 p.m.

16.21

+ 0.6%

87.1%

9 months total

48.79

47.16

+ 3.4%

86.3%

In France, the gross margin for the third quarter of 2021 is up slightly, by 0.6% to € 16.3 million. Digital businesses grew 5.2%, supported by Mobile and the sharp increase in the volumes of digital coupons issued, in particular on the Click & Collect sites. Quarterly activity is impacted by the 9.5% drop in offline activities.
Over the first nine months of 2021, activity is up 3.4%, France representing 86.3% of the gross margin of the Group. Digital companies grew 2.3% and their share was 67.1% of gross margin. Digital growth remained limited due to a less favorable basis of comparison (better resilience of digital companies in 2020).

International: positive commercial activity

INTERNATIONAL

Gross margin (in € m)

2021/2020
LFL change

% Total gross profit

2021

2020 LFL

T1

2.61

2.90

-10.1%

14.0%

T2

2.71

2.12

+ 27.8%

14.1%

T3

2.42

2.31

+ 4.6%

12.9%

9 months total

7.74

7.33

+ 5.5%

13.7%

Q3 2021 international gross margin increased by 4.6% like-for-like to € 2.42m, confirming the recovery observed in Q2. This growth in activity is mainly due to Belgium (+ 4.4%), where the volume of cleared coupons increased sharply. Business in other countries posted healthy growth of 7%.

During the first nine months of the year, International activities grew by 5.5% to € 7.74 million, representing 13.7% of the Group’s gross margin. Digital grew 4.2% and accounted for 61.5% of gross margin.

2021 ORIENTATIONS CONFIRMED

With a financial performance in Q3 in line with expectations, the Group confirms its forecast for 2021:

  • Slight growth in gross margin in the second half and fourth quarter (Q4 2020 gross margin: € 19.67m; H2 2020 gross margin: € 38.19m; FY 2020 gross margin: € 74.16m);

  • Adjusted operating margin (Adjusted overall PBIT3/ gross profit) of more than 19% (2020 adjusted operating margin: 16.4%).

About HighCo

As an expert in data marketing and communication, HighCo is constantly innovating to support brands and retailers in the face of the retail challenges of tomorrow.
Listed on compartment C of Euronext Paris, and eligible for PEA-PME, HighCo has nearly 600 employees and has been part of the Gaia Index since 2010, a selection of 70 responsible SMEs Mid Caps.

Your contacts

Cecile Collina-Hint Cynthia The rat
General manager Press relations
+33 1 77 75 65 06 +33 1 77 75 65 16
comfi@highco.com c.lerat@highco.com

Future event

The publication takes place after market close.

Gross margin for the fourth quarter and full year 2021: Wednesday January 19, 2022

HighCo is a value making up the CAC indices® Small (CACS), CAC® Medium and small (CAFMC), CCC® All-Tradable (CACT), Euronext® Technology Growth (FRTPR) and Enter next® PEA-PME 150 (ENPME).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
For more financial information and press releases, visit www.highco.com.

This English translation is for the convenience of English speaking readers. Therefore, the translation cannot be relied on to support a legal claim, nor should it be used as the basis for legal advice. HighCo expressly disclaims all liability for any inaccuracies herein.

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