Paris, 26 April 2017 (6.00 p.m.)
CONTINUED GROWTH IN Q1 2017: GROSS PROFIT UP 4.2% LFL
16th consecutive quarter of business growth
- Q1 2017 1 gross profit of €20.38 M, up 4.5% on a reported basis and 4.2% LFL 2 .
- Strong growth in digital business: Q1 LFL up 10.2%.
- Strong growth in France: Q1 LFL up 12.4%.
- Decline in Belgium: Q1 LFL down 12.2%.
2017 guidance confirmed
- Growth in gross profit of more than 4% LFL.
- Growth in adjusted operating margin (adjusted headline PBIT/gross profit) 3 of equal to or greater than 50 bp.
| (€ M) | 2017 | 2016 Reported | 2016 LFL 2 | 2017/2016 Reported change | Change 2017/2016 LFL 2 |
| Q1 Gross Profit 1 | 20.38 | 19.51 | 19.56 | +4.5% | +4.2% |
1 Unaudited data. 2 Like for like: Based on a comparable scope (i.e. including CapitalData over three 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 & tax: recurring operating income before restructuring costs and excluding the cost of performance share plans. Adjusted operating margin: Adjusted headline PBIT/Gross profit.
Didier Chabassieu, Chairman of the Management Board, stated, "After very strong growth in 2016, and despite a decline in offline business in Belgium, the Group continued its organic growth. Thanks to Digital, HighCo began its fifth consecutive year of business growth. This performance confirms our strategy of maintaining our investments in data and mobile, which will be our growth drivers."
GROUP GROWTH DRIVEN BY DIGITAL BUSINESS
With like-for-like growth of 10.2% in Q1 2017 , Digital business continues to drive the Group's organic growth. The share of digital in total Group business increased from 43.1% in Q1 2016 (excluding the United Kingdom) to 45.8% in Q1 2017. Offline businesses fell slightly over the quarter (down 0.4% like for like). Based on this performance, the Group posted a 16th consecutive quarter of business growth, with an increase of 4.5% on a reported basis and 4.2% like for like to €20.38 M in Q1 2017 .
CONTINUED POSITIVE TREND IN FRANCE BUT DECLINE IN BELGIUM
Up 12.4% like for like, France turned in a strong performance in Q1 2017 with gross profit of €14.42 M , representing 70.7% of the Group's gross profit. The share of digital business came out at 51.2% over the period.
International gross profit fell 11.4% like for like to €5.96 M in Q1 2017 , i.e. 29.3% of the Group's gross profit, as a result of the challenges met in Belgium. With gross profit of €5.64 M, Benelux was down 12.2% like for like over the quarter. Belgium suffered from the drop in the volume of paper coupons cleared and the decline in offline in-store media. In contrast, businesses in Southern Europe (Spain and Italy) continued on their upward trend, with like-for-like growth of 6.1% in the first quarter. This region now accounts for 1.6% of the Group's gross profit.
2017 GUIDANCE CONFIRMED
Given the performance reported in the first quarter and the outlook expected for the months to come, the Group has confirmed its guidance for 2017:
- Growth in 2017 gross profit of more than 4% like for like (2016 gross profit: up 11.8% like for like);
- Increase in adjusted headline PBIT 3 equal to or greater than 6% (adjusted 2016 headline PBIT: €14.10 M);
- Rise in adjusted operating margin equal to or greater than 50 bp (2016 adjusted operating margin: 17.4%).
2016 ANNUAL REPORT AND 2017 ANNUAL GENERAL MEETING
HighCo's 2016 Annual Report was filed with the Autorité des Marchés Financiers (French financial markets authority) on 13 April 2017. The report is delivered as the Group's registration document and is available on HighCo's website ( www.highco.com ), under Finance>Regulated Information>Annual Report.
The Annual General Meeting will be held at the Group's head office in Aix-en-Provence on 22 May 2017. A dividend of €0.12 per share for FY 2016 will be proposed at the meeting, with payment scheduled for 6 June 2017 (ex-dividend date of 2 June 2017).
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 Managing Director Press Relations +33 1 77 75 65 06 +33 1 77 75 65 16 comfi@highco.com c.lerat@highco.com
Upcoming events
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Q2 and H1 2017 Gross Profit: Wednesday, 19 July 2017 2017 Half-year Earnings: Wednesday, 30 August 2017 Conference call on 2017 half-year earnings: Thursday, 31 August 2017 Q3 and 9-month YTD 2017 Gross Profit: Wednesday, 18 October 2017 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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