Paris, 18 October
2017 (6.00 p.m.)
SLIGHT GROWTH IN
Q3 2017: GROSS PROFIT UP 0.2% LFL
2017 GUIDANCE CONFIRMED
Third-quarter
business growth in line with expectations
-
Q3 20171 gross profit
of €19.16 M, up 0.2% on a reported basis and 0.2%
LFL2.
-
9-month 20171 gross profit
of €61.44 M, up 1.7% on a reported basis and 1.6%
LFL2.
-
Growth in digital businesses: Q3 up 1.7% LFL,
9-month YTD up 4.8% LFL.
-
Slight growth in France: Q3 up 0.4% LFL, 9-month
YTD up 4.9% LFL.
-
Less significant decline in international
business: Q3 down 0.4% LFL, 9-month YTD down 5.4% LFL.
2017 annual
guidance confirmed
-
Growth in gross profit of more than 1%
LFL.
-
Increase in adjusted headline PBIT3
between 4% and 6%.
-
Rise in adjusted operating margin (adjusted
headline PBIT/gross profit)3 of equal to
or greater than 50 bp.
Gross profit (in € m) |
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% |
Q31 |
19.16 |
19.13 |
19.13 |
+0.2% |
+0.2% |
9-month total1 |
61.44 |
60.40 |
60.45 |
+1.7% |
+1.6% |
1 Unaudited
data.
2 Like for
like: Based on a comparable scope (i.e. including CapitalData over
nine 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 and tax: recurring operating income
before restructuring costs and excluding the cost of performance
share plans. Adjusted operating margin: Adjusted headline
PBIT/Gross profit.
Cécile Collina-Hue, Chairman of
the Management Board, stated: "After posting
healthy results in the first half of the year, HighCo announces
further organic growth for the third quarter, in line with our
expectations, driven mainly by the strong performance of In-Store
digital businesses in France. With this level of business activity
and our sound cost control, we have confirmed our 2017 guidance for
growth in gross profit and profitability."
GROWTH IN DIGITAL
BUSINESSES
With an increase
in like-for-like growth of 1.7% in Q3 2017, digital
businesses remained on their growth trend, enabling the Group to
post slight organic growth. The share of digital in total Group
business continued to rise, up from 45.9% in Q3 2016 to 46.6%
in Q3 2017. With a like-for-like drop of 1.2%, offline
businesses continued to decline. As a result, despite the very high
standard of comparison (like-for-like growth of 11.4% in
Q3 2016), the Group posted slight business
growth for Q3 2017, up 0.2% on a reported
basis and 0.2% like for like to €19.16 M.
Over the first
nine months of the year, digital businesses rose 4.8% on a
like-for-like basis, and their share in total Group business
increased from 45.6% at the end of September 2016 to 47.1% at
the end of September 2017. The rate of growth in Digital came
in lower than initially expected, especially for fully digital
Drive to Store businesses. Meanwhile, offline businesses declined
1% like for like over the same period. This
resulted in Group gross profit of €61.44 M for the first nine
months of 2017, up 1.7% on a reported basis and 1.6% like for
like.
FRANCE: SLIGHT GROWTH IN
Q3
Up
0.4% like for like, France turned in gross profit of €13.64 M
in Q3 2017, representing 71.2% of the Group's gross
profit. This growth was mainly driven by the continuous development
of In-Store digital businesses. As such, the Group's French
businesses held up well despite the decline in paper coupon
clearing and certain Drive to Store mobile business.
For the first
nine months of 2017, gross profit totalled €43.62 M in France,
climbing 4.9% like for like. Over the same period, digital
businesses grew 3.7% like for like, and their share in gross profit
reached 53.9%.
INTERNATIONAL BUSINESS: LESS
SIGNIFICANT DECLINE IN Q3
International
gross profit slipped 0.4% like for like to €5.52 M in
Q3 2017, i.e. 28.8% of the Group's gross profit. In Benelux, gross profit fell 0.7% like for like in
Q3 2017, coming to €5.34 M. This decline was less
significant in Q3 than in Q1 (down 12.2%) and Q2 (down 3.6%).
Digital businesses showed double-digit growth in Benelux over the
quarter, which offset the drop in the volume of paper coupons
cleared and the decline in offline in-store media.
For the first
nine months of 2017, international gross profit totalled
€17.82 M, down 5.4% like for like. Benelux declined 5.8%
like for like, still accounting for 27.7% of the Group's gross
profit. With a good performance in Q3 2017, business in
Southern Europe (Spain and Italy) has held up well, posting
like-for-like growth of 3.1% since the beginning of the year. The
region accounts for 1.3% of the Group's gross profit.
2017 GUIDANCE
CONFIRMED
Given the performance reported for
the third quarter, the Group has confirmed its revised guidance for
2017 announced in July:
-
Growth in 2017 gross profit of more than 1% like
for like (2016 gross profit: €81.11 M like for like; up 11.8%
based on historical like-for-like data);
-
Increase in adjusted headline PBIT3
between 4% and 6% (adjusted 2016 headline PBIT:
€14.10 M);
-
Rise in adjusted operating margin3
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
Chairman of the Management
Board
Press Relations
+33 1 77 75 65
06 +33
1 77 75 65 16
comfi@highco.com c.lerat@highco.com
Upcoming events
Publication takes place after market close.
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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