High Co (HCO) H1 2024 earnings summary

Executive summary

• H1 2024 gross profit was €37.7m, down 0.6% like-for-like, with stable business activity and profitability.

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

• The Activation division grew 10.9% in H1, offsetting declines in Mobile (-7.4%) and Consulting & Advertising (-14.2%).

• France remained stable, accounting for 88% of gross profit; international business declined 4.7%.

Financial highlights

• Headline PBIT: €9.6m, down 0.2%; recurring operating income: €8.99m, down 1.2%; operating margin: 25.5%, up 10bps.

• Net cash (excluding working capital): €21.38m, up €1.98m since year-end 2023.

• Net income: €7.04m, down 1.4% year-over-year; effective tax rate improved to 26.9%.

• Operating cash flow (excl. IFRS 16) increased by €1.45m to €8.59m.

Outlook and guidance

• Gross profit expected to decline 9% in H2 2024; full-year operating margin to remain above 16%.

• CAPEX for 2024 to be less than €1m; dividend of €0.20 per share paid in May 2024.

• Ongoing discussions with Casino to define new collaboration scope.