HighCo: Q3 2021 gross margin

Aix-en-Provence, 20 October 2021 (6:00 p.m.)

HIGHCO: GROWTH IN Q3 2021 IN LINE WITH EXPECTATIONS (GP: UP 1.1%); 2021 CONFIRMED ORIENTATION

Business growth in Q3 2021 driven by Digital

• Q3 2021 gross margin¹ of €18.72 million, up 1.1% in published data and LFL².

• 9 months 2021¹ gross margin of €56.52 million, up 3.7% on a reported basis and like-for-like².

• The digital business showed solid growth in the quarter (Q3 up 4.5% LFL, 9 months YTD up 2.6% LFL).

• Slight growth in activity in France (Q3 up 0.6% LFL; 9 months YTD up 3.4% LFL) and positive trend internationally (Q3 up 4.6% LFL; 9 month YTD up 5.5% LFL).

Orientation 2021 confirmed

¹ Unaudited data.
² Like-for-like: On the basis of a like-for-like scope and at constant exchange rates (ie by applying the average exchange rate for the period to the data for the period being compared).
In addition, in application of IFRS 5 – Non-current assets held for sale and discontinued operations, Shelf Service activities have been presented as discontinued operations from the fourth quarter of 2020. For the sake of consistency, the data reported for the first nine months of 2020 has been restated to take into account the impact of the Shelf Service. Consequently, like-for-like data is equal to restated data for the first nine months of 2020.
³ Current operating profit before interest and tax: Current operating profit before restructuring costs and excluding the cost of performance share plans. Adjusted operating margin: Adjusted EBITDA/Gross profit.

Didier Chabassieu, Chairman of the Management Board, declared: “Driven by its digital activities (+4.5%), HighCo posted a third quarter in line with expectations. Digital is supported by the strong growth of mobile activities (+6.4%) and now represents more than two thirds of our total activity. Given this good performance and good cost control, we can expect a slight growth in activity in the fourth quarter and confirm our 2021 operating margin forecasts.”

The story continues

Q3 2021 BUSINESS GROWTH DRIVEN BY DIGITAL

After a good H1 2021 (+5.1% like-for-like), HighCo continued its growth trend in Q3 2021 and posted a gross margin up 1.1% to €18.72m, in line with expectations.
This growth was mainly driven by:

• Mobile businesses, which remain on an upward trend (+6.4%);

• volumes of compensated coupons, which continues to grow (+30%), in particular thanks to dematerialization (+41%);

• Strong activity in Belgium (+4.4%).

Digital activity grew by 4.5% like-for-like in Q3 2021, representing 70.5% of the Group’s gross margin, continuing their positive trend. Meanwhile, offline businesses fell 6.2% in the quarter.

As a result, the Group’s activities are up 3.7% over the first nine months of 2021 to €56.52 million. This growth is mainly driven by: the growth of Mobile activities (+7%), the increase in volumes of coupons cleared (+21%) and the good performance of Belgium (+5.7% like-for-like). Now representing 66.4% of HighCo’s activities, Digital grew by 2.6% over the period.

France: slight increase in activity

In France, gross margin for Q3 2021 increased slightly by 0.6% to €16.3m. Digital businesses grew by 5.2%, supported by Mobile and the sharp increase in the volume of digital coupons issued, particularly on Click & Collect sites. Quarterly activity was impacted by the 9.5% drop in offline activities.
Over the first nine months of 2021, activity is up by 3.4%, with France representing 86.3% of the Group’s gross margin. Digital activities grew by 2.3% and their share represented 67.1% of the gross margin. Growth in Digital remains limited due to a less favorable basis for comparison (better resilience of digital activities in 2020).

International: positive commercial activity

International gross margin for Q3 2021 increased by 4.6% like-for-like to €2.42m, confirming the recovery observed in Q2. This growth in activity is mainly due to Belgium (+4.4%), where the volume of cleared coupons increased sharply. Business in other countries posted strong growth of 7%.

For the first nine months of the year, International activities increased by 5.5% to €7.74 million, representing 13.7% of the Group’s gross margin. Digital increased by 4.2% and represented 61.5% of the gross margin.

2021 TARGETS CONFIRMED

With Q3 financial performance in line with expectations, the Group confirms its guidance for 2021:

• Slight growth in gross margin in the second half and fourth quarter (Q4 2020 gross margin: €19.67m; H2 2020 gross margin: €38.19m; FY 2020 gross margin: €74.16m);

• Adjusted operating margin (Adjusted EBIT³/gross profit) of more than 19% (2020 adjusted operating margin: 16.4%).

About HighCo

Expert in data marketing and communication, HighCo is constantly innovating to support brands and retailers in the face of the retail challenges of tomorrow.
Listed on compartment C of Euronext Paris, and eligible for the PEA-PME, HighCo has nearly 600 employees and has been part of the Gaia index since 2010, a selection of 70 responsible VSEs and SMEs. Mid caps.

Your contacts

Cecile hill-Tint Cynthia The rat
General manager Press relations
+33 1 77 75 65 06 +33 1 77 75 65 16
comfi@highco.com c.lerat@highco.com

Future event

Publication takes place after market close.

Gross margin for the 4th quarter and full year 2021: Wednesday, January 19, 2022

HighCo is a constituent share of the CAC indices^® Small (CACS), CAC^® medium and small (CAFMC), CAC^® All-Tradable (CACT), Euronext^® Technology Growth (FRTPR) and Internext^® PEA-PME 150 (ENPME).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO PF
For more financial information and press releases, visit www.highco.com.

This English translation is for the convenience of English-speaking readers. Therefore, the translation cannot be relied upon to support any legal claim, nor be used as the basis of legal advice. HighCo expressly disclaims any liability for any inaccuracies herein.

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