High Co (HCO) Q2 2024 TU earnings summary

Executive summary

• Q2 2024 gross profit declined 1.6% like-for-like (LFL) to €18.84m, in line with expectations.

• H1 2024 gross profit was €37.7m, down 0.6% LFL; group revenue for H1 2024 was €77m.

• Activation division showed strong growth, while marketing, consulting, and ad-selling businesses declined.

• 2024 guidance reiterated: gross profit expected to drop ~10%, operating margin above 15%.

Financial highlights

• Q1 2024 gross profit up 0.5% LFL; Q2 2024 down 1.6% LFL; H1 2024 down 0.6% LFL.

• France: Q2 gross profit down 1.3% LFL; H1 stable at €33.18m (88% of group gross profit).

• International: Q2 gross profit down 4.1% LFL; H1 down 4.7% to €4.52m (12% of group gross profit).

• H1 2024 headline PBIT and operating margin forecasted stable vs. H1 2023 restated (€9.62m, 25.4%).

Outlook and guidance

• 2024 guidance maintained: gross profit to decrease by about 10% (2023: €74.35m).

• Operating margin expected to remain above 15% (2023: 22.1%).

• Strong decline in ad-selling business expected in H2 2024 due to Casino store sale.