High Co (HCO) H1 2024 earnings summary

Executive summary

• Business activity and profitability remained stable in H1 2024, with revenue at €77.03M (+2.3% year-over-year) and gross profit at €37.7m, down 0.6% like-for-like.

• The Activation division grew 10.9%, driven by a 28% increase in coupon volumes in France, while Mobile (-7.4%) and Consulting & Advertising/Agencies & Régies (-14.2%) declined.

• France contributed 88% of gross profit, stable at €33.18m, with international operations down 4.7% to €4.52m.

• Adjusted attributable net income rose 0.9% to €6.22m, and adjusted EPS increased 2.7% to €0.32.

• The group maintained its EcoVadis Gold rating for CSR, ranking in the top 5% of evaluated companies.

Financial highlights

• H1 2024 gross profit: €37.7m, down 0.6% like-for-like; Q2 gross profit: €18.84m, down 1.6% like-for-like.

• Headline PBIT: €9.6m, down 0.2%; recurring operating income: €8.99m, down 1.2%; operating income: €9.23m, up 1.1%.

• Net cash at June 30, 2024: €68.68m, up €2.55m from December 2023; net cash excluding working capital: €21.38m, up €1.98m.

• Shareholders' equity increased to €91.95m (+€2.09m since December 2023).

• Dividend of €0.20 per share paid in May 2024.

Outlook and guidance

• Gross profit/margin for 2024 expected to decline about 9% (previously -10%), with full-year operating margin to remain above 16%.

• CAPEX for 2024 to be less than €1m; share buybacks planned at around €1m.

• Continued decarbonisation and CSR strategy roll-out, including "Impact 2030" roadmap.

• Ongoing discussions with Casino to define new collaboration scope.