• HighCo: Q4 2021 gross profit

    Source: Nasdaq GlobeNewswire / 19 Jan 2022 11:00:00   America/Chicago

    Aix-en-Provence, 19 January 2022 (6.00 p.m.)

    HIGHCO: RETURN TO GROWTH IN 2021 (GP: UP 3.2%) WITH PROFITABILITY REVISED UPWARDS (Op.M > 20%); RECOMMENDATION OF A STRONG DIVIDEND INCREASE

    Return to growth in 2021 with Q4 in line with expectations

    • Q4 2021 gross profit (GP)1 of €20 m, up 1.7% on a reported basis and LFL2.
    • FY 2021 gross profit1 of €76.52 m, up 3.2% on a reported basis and LFL2.
    • Growth in digital businesses (Q4 up 2.6% LFL; FY up 2.6% LFL) and good performance of offline businesses (Q4 down 0.2% LFL; FY up 4.5% LFL).
    • FY 2021 business growth in France (Q4 up 2.9% LFL; FY up 3.3% LFL) slightly higher than for International business (Q4 down 7% LFL; FY up 2.3% LFL).

    2021 financial performance exceeds expectations

    • Growth in headline PBIT3 expected to be up more than 25%.
    • Adjusted operating margin (adjusted headline PBIT/gross profit)3 rising from more than 19% to more than 20%.
    • Shareholder returns: recommendation of a strong dividend increase (up 18.5% to €0.32 per share).

    Stock markets: HighCo remains eligible for France’s SME equity savings plans (“PEA-PME”)



    Gross Profit (in € m)120212020 LFL22021/2020
    LFL2 change
    Q118.5918.19+2.2%
    Q219.2117.78+8.1%
    Q318.7218.52+1.1%
    Q420.0019.67+1.7%
    12-month total76.5274.16+3.2%

    1 Data currently being audited.
    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 impact of performance share plans. Adjusted operating margin: Adjusted headline PBIT/Gross profit.

    Didier Chabassieu, Chairman of the Management Board, stated, “After two years marked by a complex health and economic environment, HighCo posts a return to growth (up 3.2%), mainly driven by the sharp growth in Mobile businesses (up 6.8%). This growth in our businesses, combined with sound cost control, has enabled us to deliver very strong profitability (Op.M > 20%), higher than the pre-pandemic level in 2019. Thanks to this good financial performance, the Group can move forward in its aggressive innovation strategy through significant financial and human investment in its new businesses, while offering high shareholder returns with a dividend per share of €0.32.”

    RETURN TO GROWTH IN 2021 WITH Q4 IN LINE WITH EXPECTATIONS

    As anticipated, HighCo showed growth in Q4 2021 and posted a 1.7% increase in gross profit to €20 m. Digital business grew 2.6% like for like in Q4 2021, driven by the strong performance of Mobile businesses (up 6.3%). Meanwhile, offline businesses fell slightly by 0.2% over the quarter.

    As a result, the Group’s businesses grew 3.2% for FY 2021 to €76.52 m.
    This growth was mainly driven by:

    • Digital, up 2.6%, which now accounts for 66.9% of business, especially with the strong performance of Mobile businesses (up 6.8%);
    • Sharp rise in volumes of coupons cleared (up 14%), thanks to paperless clearing (up 30%) and the significant increase in digital coupons issued on Click & Collect sites (up 27%);
    • Good performance in offline businesses (up 4.5%), benefiting from a favourable comparison base.

    The Group’s revenue for FY 2021 came to €137.4 m.

    FY 2021 business growth in France slightly higher than for International business

    FRANCE

    		Gross Profit (in € m)2021/2020
    LFL change

    		% Total gross profit

    20212020 LFL
    Q115.9815.30+4.5%86.0%
    Q216.5015.66+5.4%85.9%
    Q316.3016.21+0.6%87.1%
    Q417.6617.16+2.9%88.3%
    12-month total66.4564.32+3.3%86.8%

    In France, Q4 2021 gross profit grew 2.9% to €17.66 M. Digital businesses grew 2.8%, driven by Mobile (up 5.8%). The good quarterly business activity was also driven by the good performance of offline businesses (up 3.2%).

    As a result, business grew 3.3% for FY 2021, with France accounting for 86.8% of the Group’s gross profit. Digital businesses grew 2.4%, and their share represented 67.4% of gross profit. Thanks to an extremely favourable comparison base, mainly in Q2 (up 25.3%) offline businesses grew 5.1% for the financial year.

    INTERNATIONAL

    		Gross Profit (in € m)2021/2020
    LFL change

    		% Total gross profit

    20212020 LFL
    Q12.612.90-10.1%14.0%
    Q22.712.12+27.8%14.1%
    Q32.422.31+4.6%12.9%
    Q42.342.51-7.0%11.7%
    12-month total10.079.84+2.3%13.2%

    In International businesses, after two quarters of strong growth, gross profit in Q4 2021 declined 7% like for like to €2.34 m.

    For FY 2021, International business therefore rose 2.3% to €10.07 m, accounting for 13.2% of the Group’s gross profit. This business growth came both from Belgium (up 2.1%), with a rise in the volume of coupons cleared (up 7%), and from other countries (up 4.3%). Digital grew 3.3% for FY 2021 and accounted for 63.1% of gross profit.

    2021 FINANCIAL PERFORMANCE EXCEEDS EXPECTATIONS

    Based on the year-end closing in progress, business growth combined with sound cost control shows a strong increase in headline PBIT of more than 25%. As a result, the Group has raised its guidance for operating margin, now forecasting adjusted operating margin3 up from more than 19% to more than 20% (reported 2020 adjusted operating margin of 16.4%). This profitability is also higher than the pre-pandemic level (reported 2019 adjusted operating margin of 18.5%).

    In light of the Group’s expected results and solid financial position, the Management Board plans to deliver high shareholder returns:

    • by recommending to the Supervisory Board to propose at the next Annual General Meeting a dividend per share of €0.32, representing a strong increase of 18.5%, doubling the pre-pandemic dividend paid in 2019 (€0.16 per share);
    • and by moving forward with its share buyback programme.

    2021 annual earnings will be released on 22 March after market close. A conference call for financial analysts is scheduled for Wednesday, 23 March at 11.00 a.m.

    STOCK MARKETS: HIGHCO REMAINS ELIGIBLE FOR FRANCE’S SME EQUITY SAVINGS PLANS

    In line with regulations (France’s Action Plan for Business Growth and Transformation, or PACTE, of 22 May 2019), HighCo remains eligible for France’s government initiative supporting SME equity savings plans (“PEA-PME”). Eligibility means that HighCo shares can be included in these individual equity savings plans (“PEA-PME”).

    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 more than 500 employees and has achieved Platinum status from EcoVadis, meaning that the Group is ranked in the top 1% of companies in terms of CSR performance and responsible purchasing.

    Your contacts

    Cécile Collina-Hue                Cynthia Lerat
    Managing Director                Press Relations
    +33 1 77 75 65 06                +33 1 77 75 65 16
    comfi@highco.com                c.lerat@highco.com

    Upcoming events

    Publications take place after market close.

    2021 Annual Earnings: Tuesday, 22 March 2022
    Conference call on 2021 annual earnings: Wednesday, 23 March 2022 at 2.00 pm
    Q1 2022 Gross Profit: Tuesday, 26 April 2022
    Q2 and H1 2022 Gross Profit: Thursday, 21 July 2022
    2022 Half-year Earnings: Wednesday, 24 August 2022
    Conference call on 2022 half-year earnings: Thursday, 25 August 2022
    Q3 and 9-month YTD 2022 Gross Profit: Wednesday, 19 October 2022
    Q4 and FY 2022 Gross Profit: Wednesday, 25 January 2023


    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.

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