Paris, 17 October
2018 (6.00 p.m.)
HIGHCO
STRENGTHENS ITS GROWTH IN Q3 (GROSS PROFIT UP 2.7% LFL) THANKS TO
DIGITAL
LFL business
growth of 2.7% in Q3
-
Q3 20181 gross profit
of €21.19 M, up 10.6% on a reported basis and 2.7%
LFL2.
-
9-month 20181 gross profit
of €64.38 M, up 4.8% on a reported basis and 2.3%
LFL2.
-
Strong growth in digital business: Q3 up 13.4%
LFL, 9-month YTD up 7.9% LFL.
-
Continued robust growth in France: Q3 up 7.6%
LFL, 9-month YTD up 5.9% LFL.
-
Decline in Belgium: Q3 down 11.6% LFL, 9-month
YTD down 6.9% LFL.
2018 guidance
confirmed
Gross Profit (in € M) |
2018 |
2017 Reported |
2017 LFL2 |
2018/2017
Reported change |
2018/2017
LFL2
change |
Q1 |
20.73 |
20.38 |
20.38 |
+1.7% |
+1.7% |
Q2 |
22.47 |
21.90 |
21.90 |
+2.6% |
+2.6% |
Q31 |
21.19 |
19.16 |
20.62 |
+10.6% |
+2.7% |
9-month total1 |
64.38 |
61.44 |
62.90 |
+4.8% |
+2.3% |
1 Unaudited
data.
2 Like for
like: Based on a comparable scope (i.e. including Useradgents over
three months in 2017 and 2018, as of 1 July) 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: "With the strong
growth in digital businesses and the integration of Useradgents,
the Group posts growth in its gross profit of 10.6% on a reported
basis and 2.7% like for like in Q3. Our solutions have been praised
by the industry. Developed by drawing on artificial intelligence
and UX, they attest to our innovative nature and confirm our
strategy of focusing on data and mobile. This good performance has
enabled HighCo to confirm its guidance for 2018."
STRONG GROWTH IN
DIGITAL BUSINESSES
Driven by Digital
in Q3 2018, the Group posted solid business growth, up 10.6%
on a reported basis and 2.7% like for like to €21.19 M.
For the first nine months of 2018, the Group's gross profit
totalled €64.38 M, climbing 4.8% on a reported basis and 2.3%
like for like.
With
like-for-like growth of 13.4% in Q3 2018, Digital shows a
strong performance. The share of Digital in total Group
business also increased significantly, from 46.6% in Q3 2017
(50.4% including Useradgents) to 55.6%. Offline businesses showed a
like-for-like decline of 8.1% over the quarter.
Over the first
nine months of the year, digital businesses rose 7.9% on a
like-for-like basis, accounting for 50.9% of the Group's gross
profit at end-September 2018 (47.1% at
end-September 2017, 48.3% including Useradgents). The rate of
growth in Digital accelerated, especially for fully digital Drive
to Store businesses and following the integration of Useradgents.
Meanwhile, offline businesses declined 2.9% like for like over the
same period.
Over the past few weeks, the
Group's digital solutions have received praise within the industry
on many occasions, namely:
- the Tourist Tracker®
artificial intelligence solution developed by CapitalData for
Franprix and,
- the Boulanger and Franprix
mobile applications designed by Useradgents and recognised for
their UX (User eXperience).
CONTINUED ROBUST
GROWTH IN FRANCE
Up 7.6% like for
like, France turned in gross profit of €16.25 M in
Q3 2018, representing 76.7% of the Group's gross profit.
For the first nine months of 2018, gross profit totalled
€47.74 M in France, climbing 5.9% like for like.
This growth is
driven by the strong development of digital businesses, which grew
14.3% like for like in the quarter, reaching a 62.5% share in the
gross profit for France. Over the first nine months of the
year, digital businesses grew 9.5% on a like-for-like basis,
representing 57.2% of the Group's total business. Meanwhile,
offline businesses held up well with like-for-like growth of 1.5%
over the same period, essentially driven by the event-related
promotional campaigns launched for brands and retailers.
DECLINE IN
BELGIUM
International
gross profit slipped 10.5% like for like to €4.94 M in
Q3 2018, i.e. 23.3% of the Group's gross profit. In Benelux, gross profit fell 11.6% like for like in
Q3 2018 to €4.72 M. Amid a challenging market
environment in Belgium, the 6.6% growth in digital businesses over
the quarter, representing 30.1% of gross profit, did not offset the
drop in the volume of paper coupons cleared and the decline in
offline in-store media.
For the first nine months of 2018,
international gross profit totalled €16.64 M, down 6.6% like
for like. Benelux declined 6.9% like for like, now accounting for
24.6% of the Group's gross profit. After a good Q3, business in
Southern Europe (Spain and Italy) remained stable over the period
(down 0.3% like for like). The region accounts for 1.2% of the
Group's gross profit.
AWARDED BY THE
GAIA INDEX
At the ESG award ceremony based on the 2018 Gaia
Rating standards, HighCo had the honour of winning
second place in the category of companies with revenue of less than
€150 M. The ESG rating agency of EthiFinance, Gaia Rating
conducts an annual data collection campaign covering most of the
listed SMEs in France. Based on the information gathered, the
companies are rated for their extra-financial transparency and
performance. This award recognises the Group's ongoing commitment
to CSR.
2018 GUIDANCE
CONFIRMED
Based on the strong performance reported since the
beginning of the year and the integration of Useradgents, the Group
has confirmed its guidance for 2018:
-
Growth in 2018 gross profit higher than growth
in 2017 on a like-for-like basis (2017 gross profit: up 1.4%
LFL);
-
Share of Digital in the Group's total business
for 2018 higher than the share in 2017 (47.8% in 2017);
-
Rise in adjusted operating margin3
(2017 adjusted operating margin: 18.1%).
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 750 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 2018 Gross Profit:
Wednesday, 23 January 2019
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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