Highco: 2020 Annual earnings
Aix-en-Provence, 23 March 2021
(6.00 p.m.)
HIGHCO: BETTER-THAN-EXPECTED FINANCIAL
PERFORMANCE IN THE CHALLENGING CONTEXT OF 2020
Business activity (GP) significantly
better in H2 (down 5.7%) than in H1 (down 14.7%)
- Full-year 2020 gross profit of €74.16 M, down 10.3% LFL1,
with H2 2020 down 5.7% LFL.
- Good resilience of Digital in 2020 thanks to Mobile business:
down 5.6% LFL, accounting for 67.3% of the Group’s total business
in 2020.
Better-than-expected results,
profitability remaining healthy, and strong increase in
dividend
- Adjusted headline PBIT2 of €12.18 M, down 28.8%.
- Adjusted operating margin2 of 16.4%.
- Recurring operating income of €12.18 M, down 24.6%.
- Adjusted attributable net income3 of €5.77 M, down
36.5%.
- Dividend of €0.27 per share to be proposed at the AGM in
May 2021, for a strong 68.8% increase (compared with the
dividends paid in 2019).
Strong cash generation
- Operating cash flow of €13 M (excluding IFRS 16), for
a limited decline of €1.21 M or 8.5%.
- Net cash excluding operating working capital of €13.42 M
at 31 December 2020, representing an increase of €10.17 M
compared to 31 December 2019.
2021 Guidance: Return
to business and growth in adjusted operating margin to more than
17%
Didier Chabassieu, Chairman of the Management
Board, stated, “After a year of this unprecedented health and
economic crisis, HighCo’s financial performance has come out better
than expected. I’m extremely proud of the Group’s resilience,
which, thanks to the dedication of its employees, has continued to
support its customers in this challenging environment. Building on
this performance, the Group has the resources to pay out a higher
dividend and, through its startup studio HighCo Venturi, accelerate
its innovation strategy in order to create its growth drivers.”
§
(€ M) |
2020 |
2019 restated |
2020/2019 Change restated |
Gross profit |
74.16 |
82.69 |
-10.3% |
Adjusted headline PBIT2 |
12.18 |
17.12 |
-28.8% |
Adjusted operating margin2 (%) |
16.4% |
20.7% |
-430 bp |
Recurring operating income |
12.18 |
16.15 |
-24.6% |
Adjusted attributable net income3 |
5.77 |
9.10 |
-36.5% |
Net cash4 excluding operating working capital |
13.42 |
3.255 |
+€10.17M |
1 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 2019 and for the
first nine months of 2020 has been restated to account for the
impact of Shelf Service. As a result, LFL data is equal to restated
data in 2019.2 Adjusted headline profit before interest and tax:
Recurring operating income before restructuring costs (2020:
€0.78 M; 2019: €0.34 M) and excluding the impact of
performance share plans (2020: income of €0.78 M; 2019: loss
of €0.62 M). Adjusted operating margin: Adjusted headline
PBIT/Gross profit.3 Adjusted attributable net income: Attributable
net income excluding the net after-tax impact of performance share
plans (2020: income of €0.56 M; 2019: loss of €0.45 M),
excluding other operating income and expenses (2020: none; 2019:
income of €0.12 M€), and excluding net income from assets held for
sale and discontinued operations (2020: loss of €2.06 M; 2019:
income of €0.55 M).4 Net cash (or net cash surplus): Cash and
cash equivalents less gross current and non-current financial debt,
excluding finance lease debt.5 At 31 December 2019, excluding
finance lease debt.
2020 FINANCIAL PERFORMANCE
Business activity (GP) significantly
better in H2 (down 5.7%) than in H1 (down 14.7%)
In the unprecedented health and economic crisis,
the Group confirmed its resilience in 2020 with gross
profit down 10.3% to reach €74.16 M, thanks to
significantly better business activity in H2 (down 5.7%) than in H1
(down 14.7%) on a like-for-like basis.
Digital held up better over the year in 2020
(down 5.6% like for like), mainly due to growth in Mobile
businesses in the second half of the year (up 5.3% like for like).
The share of Digital in total Group business increased
significantly, from 56.2% at end-2019 (including Shelf Service) to
67.3% at end-2020.
With a decline of 10.1% in 2020, France
posted gross profit of €64.32 M, representing 86.7%
of the Group’s gross profit. The impact of the crisis on activity
was partly offset by the good performance of Drive and Mobile
businesses, which grew in the last quarter.With gross
profit of €9.84 M, International businesses were down 11.9% in
2020, representing 13.3% of the Group’s gross profit. In
Benelux, business was down 13.1% over the year. As a reminder, the
Group sold its in-store activities in Benelux in
October 2020.
Better-than-expected results,
profitability remaining healthy, and strong increase in
dividend
Resilient business activity combined with sound
cost management helped limit the drop in adjusted headline
PBIT to €12.18 M, representing a decline of 28.8%.
The decline was less steep than expected thanks to 4.3%
growth in adjusted headline PBIT in the second half of the
year.Adjusted operating margin (adjusted
headline PBIT/gross profit) was revised upwards in
H2 (from 10% to 12% then 16%) to finally come out at
16.4% (drop of 210 basis points from 2019, incl.
Shelf Service).Adjusted headline PBIT came to €10.01 M for France
(down 30.9%) and €2.18 M for the International businesses
(down 17.7%).
With income of €0.78 M from the write-back
of the provision on performance share plans (2019 restated:
loss of €0.62 M), higher restructuring costs at €0.78 M
(2019 restated: €0.34 M) and no other operating income and
expenses (2019 restated: income of €0.12 M), recurring
operating income and operating income for 2020 came out at
€12.18 M, down 24.6% and 25.1% respectively.
The 2020 tax expense decreased 28.4%, totalling
€4.24 M (2019 restated: expense of €5.92 M).
The non-cash loss from assets held for sale and
discontinued operations amounted to €2.06 M in 2020 (2019
restated: income of €0.55 M) mainly due to the sale of the
Shelf Service businesses in Benelux.
Adjusted attributable net income fell
36.5% to €5.77 M (2019 restated: €9.1 M). The
reported figure came to €4.27 M, for a decrease of 54.1% (2019
restated: €9.32 M).
The Group recorded 2020 EPS of €0.28, down 36.4%
compared with restated EPS for 2019 (€0.44).
Based on this healthy financial performance, at
the next General Meeting scheduled for 17 May 2021, a
dividend payment of €0.27 per share will be proposed,
representing a sharp 68.8% increase compared with the
dividend of €0.16 per share paid in 2019 (for FY 2018).
Strong cash generation
The net cash position rose €14.42 M to
€76.96 M as at 31 December 2020. This was mainly due to
cash flow, which amounted to €13 M (excluding
the impact of IFRS 16).Excluding operating working capital
(€63.53 M at 31 December 2020), net cash totalled
€13.42 M, up by €10.17 M with respect to
31 December 2019.
Lastly, the Group would like to point out that
it repaid the €30 M government-backed loan, in full and in
advance, in January 2021.
HIGHLIGHTS
Moving forward in its digital
transformation strategy
In this complex health and economic environment
characterised by the retail industry’s accelerated shift towards
digital technology, HighCo has continued investing in its
major strategic focus, the digital transformation of its
businesses. At end-2020, digital businesses accounted for
67.3% of all Group business (56.2% at end-2019).
Supporting its clients in the face of
new challenges
Food retail has experienced a record year,
undergoing fundamental changes: ramp-up of
click & collect services, multiple
partnerships between physical chains and pure
players, structuring of marketplaces,
etc.Meanwhile, consumers significantly changed their
shopping behaviour, going to stores that were
geographically closest to them and massively shifting to
click & collect formats and contactless
payment.
In this complex environment, retailers faced
new challenges and had no option but to
accelerate the digital transformation of their
marketing.The Group advanced in its innovation
strategy through the set-up of its startup studio,
HighCo Venturi, to create its growth drivers and the
solutions that the market needs.With access to human and financial
resources, HighCo Venturi chose to give priority to digitising two
main promotional tools, discount coupons and
flyers:
- For mobile discount coupons:
- Develop the first universal mobile coupon
recognised by the check-out systems at all points of
sale, the prerequisite to launching mobile coupons in
large food retail chains;
- Build a platform to issue personalised mobile
coupons.
- For digital flyers: Launch a platform where food e-commerce
retailers can convert their sales and promotional
communication content into digital formats, thereby
offering them a valid alternative to paper flyers.
2021 GUIDANCE
Given the current health and economic
environment, for 2021 HighCo forecasts:
- A return to growth in gross profit (2020 gross
profit: €74.16 M);
- Rise in adjusted operating margin (adjusted
headline PBIT/gross profit) to more than 17% (2020
adjusted operating margin: 16.4%).
The Group’s financial resources will be
allocated to:
- Ramp-up of the startup studio HighCo Venturi
(operating investments of more than €4 M);
- Capital expenditure of between €2 M and €3 M
(€2.9 M in 2020);
- Shareholder returns with the payment of a much higher
dividend (about €5.6 M) and resumption of the share
buyback programme, which will involve more than €1 M
(suspended in 2020).
ANNUAL GENERAL MEETING OF 17 MAY
2021
HighCo’s joint annual general meeting will be
held at the head office in Aix-en-Provence on 17 May 2021 at 10.30
a.m. (CET). In the health context due to the Covid-19 pandemic, the
rules and conditions for attending this meeting may change
depending how the situation develops and in line with
regulations.
The Supervisory Board examined the financial
statements for the year ended 31 December 2020. At the time of
writing, the audit of the consolidated financial statements has
been carried out. The certification reports will be issued once the
required specific verifications have been finalised in order to
file the universal registration document.
A conference call with analysts will
take place on Wednesday, 24 March 2021 at 2.30 p.m.
(CET). The presentation will be available at the beginning
of the meeting on the Company’s website (www.highco.com) under
Investors > Financial Information > Financial analysts
meetings.
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 nearly 600 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 LeratManaging
Director
Press Relations+33 1 77 75 65
06
+33 1 77 75 65
16comfi@highco.com
c.lerat@highco.com
Upcoming
events
Publications take place after market
close.
Conference call on 2020 annual earnings:
Wednesday, 24 March 2021 at 2.30 p.m.Q1 2021 Gross Profit:
Wednesday, 21 April 2021Q2 and H1 2021 Gross Profit: Tuesday, 20
July 20212021 Half-year Earnings: Wednesday, 25 August
2021Conference call on 2021 half-year earnings: Thursday, 26 August
2021Q3 and 9-month YTD 2021 Gross Profit: Wednesday, 20
October 2021Q4 and FY 2021 Gross Profit: Wednesday, 19 January
2022
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.
- HighCo CP Résultats 2020_FR_VDEF _EN
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