HighCo: gross profit in the third quarter of 2021

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

HIGHCO: GROWTH IN THE 3RD QUARTER 2021 EXPECTATIONS (GP: UP 1.1%); 2021 MANUAL CONFIRMED

Business growth in the third quarter of 2021 driven by digital

• Gross profit in the third quarter of 2021¹ of € 18.72 million, plus 1.1% on a reported basis and LFL².
• 9 months 2021¹ Gross profit of € 56.52 million, an increase of 3.7% on a reported basis and LFL².
• Digital companies with solid growth over the quarter (Q3 + 4.5% LFL, 9-month YTD + 2.6% LFL).
• Slight business growth in France (Q3 + 0.6% LFL; 9-month YTD + 3.4% LFL) and a positive trend in international business (Q3 + 4.6% LFL; 9-month YTD + 5.5 % LFL).

Forecast for 2021 confirmed

¹ Untested data.
² Like for like: Based on a comparable scope and at constant exchange rates (ie application of the average exchange rate over the period to data from the comparison period).
In addition, in application of IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, shelf service businesses were reported as discontinued operations from the fourth quarter of 2020. For reasons of consistency, the data reported for the first nine months of 2020 has been adjusted to take into account the impact of the shelf service. As a result, the comparable data is the adjusted data for the first nine months of 2020.
³ Adjusted total earnings before interest and taxes: Recurring operating income before restructuring charges and excluding costs for performance share plans. Adjusted operating margin: Adjusted headline PBIT / gross profit.

Didier Chabassieu, Chief Executive Officer, said: “Driven by its digital businesses (plus 4.5%), HighCo has a third quarter like expectations. Digital is supported by the strong growth in the mobile communications business (plus 6.4%) and now accounts for more than two thirds of our total business. Given this good performance and solid cost control, we can expect slight business growth in the fourth quarter and confirm our forecast for the 2021 operating margin.”

BUSINESS GROWTH Q3 2021 THROUGH DIGITAL

After a healthy first half of 2021 (plus 5.1% on a comparable basis) HighCo continued its growth trend in the third quarter of 2021 and recorded an increase in gross profit of 1.1% to € 18.72 million, in line with expectations.
This growth was mainly driven by:

• Cell phone, mobile phone Companies that are still on an upward trend (up 6.4%);
• Volume of Vouchers redeemedwhich continued to grow (plus 30%) mainly thanks to paperless clearing (plus 41%);
• Strong business in Belgium (plus 4.4%).

Digital business grew 4.5% on a like-for-like basis in the third quarter of 2021, which accounts for 70.5% of the Group’s gross profit, continuing its positive trend. Meanwhile, offline stores declined 6.2% over the quarter.

As a result, the Group’s business increased in the first nine months of 2021 by 3.7% to € 56.52 million. This growth was mainly driven by: growth in the mobile communications business (plus 7%), higher volumes of redeemed coupons (plus 21%) and a good performance in Belgium (plus 5.7% on a like-for-like basis). Digital, which now accounts for 66.4% of HighCo’s business, rose 2.6% over the reporting period.

France: slight business growth

In France, gross profit rose slightly by 0.6% to € 16.3 million in the third quarter of 2021. Digital companies grew by 5.2%, supported by mobile and the sharp increase in the volume of digital coupons, especially on Click & Collect websites. Quarterly business activity was impacted by the 9.5% decrease in offline business.
Business grew 3.4% in the first nine months of 2021with France accounting for 86.3% of the group’s gross profit. Digital companies grew 2.3% and their share accounted for 67.1% of gross profit. Digital growth has remained limited due to a less favorable comparative basis (better resilience of digital companies in 2020).

International: positive business activity

International gross profit for Q3 2021 increased like-for-like by 4.6% to € 2.42 millionconfirming the recovery observed in the second quarter. This business growth resulted mainly from Belgium (plus 4.4%), where the volume of redeemed coupons rose sharply. The overseas business saw healthy growth of 7%.

In the first nine months of the year International Companies grew by 5.5% to € 7.74 millionwhich is 13.7% of the Group’s gross profit. Digital grew 4.2% and accounted for 61.5% of gross profit.

GUIDE 2021 CONFIRMED

With its financial performance as expected in the 3rd quarter, the Group confirms its forecast for 2021:

• Slight growth in gross profit in the second half of the year and fourth quarter (Gross profit 4th quarter 2020: € 19.67 million; gross profit H2 2020: € 38.19 million; gross profit FY 2020: € 74.16 million);
• Adjusted operating margin (adapted heading PBIT³/ Gross profit) of more than 19% (2020 adjusted operating margin: 16.4%).

About HighCo

As an expert in data marketing and communications, HighCo continuously innovates to work with brands and retailers to meet the challenges of tomorrow’s retail business.
HighCo is listed in Sub-Fund C of Euronext Paris and is eligible for SME equity savings plans (“PEA-PME”), employs almost 600 people and has been included in the Gaia Index since 2010, a selection of 70 responsible small and medium-sized companies Center caps.

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Gross profit Q4 and FY 2021: Wednesday, January 19, 2022

HighCo is part of the CAC indices^® Small (CACS), CAC^® Medium & small (CACMS), CAC^® All-tradable (CACT), Euronext^® technology Croissance (FRTPR) and Enternext^® PEA-PME 150 (ENPME).
ISIN: FR0000054231
Reuters: HIGH.PA
Bloomberg: HCO FP
More financial information and press releases can be found at www.highco.com.

This English translation is intended for English-speaking readers. As a result, the translation cannot be used to assert legal claims, nor should it be used as the basis for a legal opinion. HighCo expressly disclaims any liability for any inaccuracies herein.

• HighCo CP T3 2021 MB_VDEF_DE