Paris, 19 July
2017 (6.00 p.m.)
BUSINESS GROWTH IN
Q2 2017: GROSS PROFIT UP 0.7% LFL
Slowdown in
business activity in the second quarter
-
Q2 20171 gross profit
of €21.9 M, up 0.7% on a reported basis and 0.7%
LFL2.
-
H1 20171 gross profit
of €42.28 M, up 2.5% on a reported basis and 2.3%
LFL2.
-
Growth in digital businesses: Q2 LFL up 3%; H1
LFL up 6.2%.
-
Growth in France: Q2 LFL up 2.5%; H1 LFL up
7%.
-
Decline in Belgium: Q2 LFL down 3.6%; H1 LFL
down 7.9%.
Expected increase
in half-year earnings (adjusted headline PBIT3 and
adjusted operating margin3)
Rise in operating
margin maintained despite weaker business growth outlook in
2017
-
Growth in gross profit revised from more than 4%
to more than 1% LFL.
-
Growth in adjusted headline PBIT3
revised from equal to or greater than 6% to between 4% and
6%.
-
Increase in adjusted operating margin (adjusted
headline PBIT/gross profit)3 maintained at
equal to or greater than 50 bp.
| Gross Profit (in € M)1 |
2017 |
2016 Reported |
2016 LFL2 |
2017/2016
Reported change |
2017/2016
LFL2
change |
| Q1 |
20.38 |
19.51 |
19.56 |
+4.5% |
+4.2% |
| Q2 |
21.90 |
21.76 |
21.76 |
+0.7% |
+0.7% |
| Total H1 |
42.28 |
41.27 |
41.32 |
+2.5% |
+2.3% |
1 Limited audit
by the Statutory Auditors currently in progress.
2 Like for
like: Based on a comparable scope (i.e. including CapitalData over
six months in 2016 and 2017) and at constant exchange rates (i.e.
applying the average exchange rate over the period to data from the
compared period).
3 Adjusted
headline profit before interest & 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, "After an exceptional
year in 2016, the first half of 2017 has been a period of more
contrast for HighCo. Organic growth in Q2 was not as strong as
expected due to the drop in volumes in the Group's offline
businesses, especially in Belgium, and to slower growth in Digital
operations. Despite this, we expect growth in our annual earnings
thanks to sound cost control, and are moving forward with our
investment strategy in digital businesses, especially those
specialised in data and mobile technologies."
SLOWDOWN IN
GROWTH OF DIGITAL BUSINESSES
With
like-for-like growth of 3% in Q2 2017, Digital has enabled
the Group to continue to grow organically, but at a slower pace.
The share of digital activity in total Group business continues to
rise, up from 47.6% in Q2 2016 (excluding the United Kingdom)
to 48.7% in Q2 2017. Down 1.4% like for like over the same
period, offline businesses continue to decline, particularly in
Belgium. As a result, along with the very high comparison base over
this period in 2016 (up 16.5% like for like, excluding the United
Kingdom), the Group posts slight business growth
for Q2 2017, up 0.7% on a reported basis
and 0.7% like for like to €21.9 M.
Digital
businesses grew 6.2% on a like-for-like basis in H1 2017, and
their share in Group gross profit rose accordingly from 45.5% at
end-June 2016 (excluding the United Kingdom) to 47.3% at end-June
2017. HighCo still aims to generate more than 50% of the Group's
total business in digital activity by the end of the year. Offline
businesses fell 0.9% like for like over the first half of 2017.
The Group's gross profit came to €42.28 M
over the period, up 2.5% on a reported basis and 2.3% like for
like.
H1 2017 revenue amounted to
€75.3 M.
FRANCE MAINTAINS ITS GROWTH
TREND
Up 2.5% like for
like, France turned in gross profit of €15.56 M in
Q2 2017, representing 71.1% of the Group's gross profit.
This rise was mainly driven by the development of in-store digital
businesses, which offset the decline in paper coupon clearing.
Digital was up 4.2% like for like in the second quarter, in part
due to the price repositioning initiated at the beginning of the
year for certain Drive-to-Store mobile activities (Internet+ mobile).
H1 2017
gross profit totalled €29.98 M in France, rising 7% like for
like. Digital businesses grew 5.6% like for like over the first
half of the year, and their share in gross profit reached
53.6%.
LESS SUBSTANTIAL DECLINE IN
INTERNATIONAL BUSINESS IN Q2
International
gross profit fell 3.6% like for like to €6.34 M in
Q2 2017, i.e. 28.9% of the Group's gross profit. Despite a
slight improvement, Belgium continues to experience a decline in
the volume of paper coupons cleared and in offline in-store media.
With gross profit of €6.07 M, Benelux was
down 3.6% like for like in Q2 2017, as against a 12.2%
drop in the previous quarter.
International
gross profit stood at €12.3 M in H1 2017, down 7.5% like
for like. Benelux declined 7.9% like for like and represented
27.7% of the Group's gross profit. Business in Southern Europe
(Spain and Italy) held up, with like-for-like growth of 1.4% over
the period. The region accounts for 1.4% of the Group's gross
profit.
2017 HALF-YEAR EARNINGS
Based on the consolidation in
progress, the Group forecasts strong half-year
earnings, with:
-
Growth in adjusted headline PBIT3
and adjusted operating margin3 for H1 2017
(restated H1 2016 headline PBIT: €10.2 M, restated
H1 2016 operating margin: 24.7%);
-
A financial position holding up at a healthy
level, with a net cash surplus (including the working capital
resources of Data businesses) expected to increase significantly
compared with 31 December 2016.
2017 GUIDANCE
REVISED
Given the performance reported for
the second quarter and the outlook expected for the second half of
the year, the Group has revised its guidance for 2017:
-
Growth in 2017 gross profit revised from more
than 4% to more than 1% like for like (2016 gross profit: up 11.8%
like for like);
-
Growth in adjusted headline PBIT3
revised from equal to or greater than 6% to between 4% and 6%
(adjusted 2016 headline PBIT: €14.1 M);
-
Rise in adjusted operating margin3
maintained at equal to or greater than 50 bp (adjusted 2016
operating margin: 17.4%).
About HighCo
Since its creation, HighCo has placed innovation at the
heart of its values, offering its clients - brands and retailers -
Intelligent Marketing Solutions to influence shopper behaviour with
the right deal, in the right place, at the right time and on the
right channel.
Listed in compartment C of
Euronext Paris, and eligible for the "long only" DSS, HighCo has
more than 700 employees and since 2010 has been included in
the Gaia Index, a selection of 70 responsible Small and Mid
Caps.
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.
2017 Half-year Earnings:
Wednesday, 30 August 2017
Conference call on 2017 half-year earnings: Thursday, 31 August
2017 (11.00 a.m. CET)
Q3 and 9-month YTD 2017 Gross Profit: Wednesday, 18 October
2017
Q4 and FY 2017 Gross Profit: Wednesday, 24 January 2018
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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Source: HIGHCO via Globenewswire
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