High Co (HCO) H1 2025 earnings summary

Executive summary

• H1 2025 financial performance declined as expected, with gross margin down 8.2% to €30.96M and adjusted net income down 26.5%, mainly due to reduced activity with Casino, but the group remains financially solid.

• Strategic actions included the sale of High Connexion, a special €1/share dividend, and ongoing acquisitions of Sogec and Budget Box to reinforce digital promotion leadership.

• Net cash (excluding working capital) rose €15.17M to €39.91M, with total net cash at €93.97M, reflecting a robust financial position.

• 2025 guidance was revised upward: stable gross margin (~€61M) and operating margin above 12%, with growth expected in H2 driven by Activation and new contracts.

• The group is implementing new performance share plans and celebrated its 35th anniversary, boosting team morale.

Financial highlights

• Gross margin fell 8.2% to €30.96M in H1 2025; France (-7.9%), Belgium (-10.5%), Spain (-6.6%).

• Adjusted operating income (RAO/PBIT) dropped 33.4% to €5.05M; operating margin at 16.3%, down 620 bps.

• Adjusted net income group share fell 26.5% to €3.86M; adjusted EPS at €0.20, down 26.1%.

• Net cash (excluding working capital) at €39.91M, up €15.17M; total net cash at €93.97M.

• Cash flow from operations was €3.64M, down €4.95M year-over-year.

Outlook and guidance

• 2025 guidance: stable gross margin at €61M, operating margin above 12%, with growth expected in H2 from Activation and new contracts.

• Sogec and Budget Box acquisitions to be consolidated from Q4 2025; not yet included in guidance.

• CAPEX expected at €1M for 2025; major M&A activity ongoing.

• Dividend policy: over €25M distributed in 2025, with €0.25/share targeted for 2026.