HIGHCO Return to growth in 2021 with Q4 in line with expectations
- Q4 2021 gross profit (GP)1 of €20 m, up 1.7% on a reported basis and LFL2.
- FY 2021 gross profit1 of €76.52 m, up 3.2% on a reported basis and LFL2.
- Growth in digital businesses (Q4 up 2.6% LFL; FY up 2.6% LFL) and good performance of offline businesses (Q4 down 0.2% LFL; FY up 4.5% LFL).
- FY 2021 business growth in
France (Q4 up 2.9% LFL; FY up 3.3% LFL) slightly higher than for International business (Q4 down 7% LFL; FY up 2.3% LFL).
2021 financial performance exceeds expectations
- Growth in headline PBIT3 expected to be up more than 25%.
- Adjusted operating margin (adjusted headline PBIT/gross profit)3 rising from more than 19% to more than 20%.
- Shareholder returns: recommendation of a strong dividend increase (up 18.5% to €0.32 per share).
Stock markets:
| Gross Profit (in € m)1 | 2021 | 2020 LFL2 | 2021/2020 LFL2 change |
| Q1 | 18.59 | 18.19 | +2.2% |
| Q2 | 19.21 | 17.78 | +8.1% |
| Q3 | 18.72 | 18.52 | +1.1% |
| Q4 | 20.00 | 19.67 | +1.7% |
| 12-month total | 76.52 | 74.16 | +3.2% |
1 Data currently being audited.
2 Like for like: Based on a comparable scope and at constant exchange rates (i.e. applying the average exchange rate over the period to data from the compared period).
Furthermore, in application of IFRS 5 – Non-current Assets Held for Sale and Discontinued Operations, Shelf Service businesses were reported as discontinued operations as of the fourth quarter of 2020. For reasons of consistency, the data reported for the first nine months of 2020 has been restated to account for the impact of Shelf Service. As a result, like-for-like data is equal to restated data for the first nine months of 2020.
3 Adjusted headline profit before interest and tax: Recurring operating income before restructuring costs and excluding the impact of performance share plans. Adjusted operating margin: Adjusted headline PBIT/Gross profit.
RETURN TO GROWTH IN 2021 WITH Q4 IN LINE WITH EXPECTATIONS
As anticipated,
As a result, the Group’s businesses grew 3.2% for FY 2021 to €76.52 m.
This growth was mainly driven by:
- Digital, up 2.6%, which now accounts for 66.9% of business, especially with the strong performance of Mobile businesses (up 6.8%);
- Sharp rise in volumes of coupons cleared (up 14%), thanks to paperless clearing (up 30%) and the significant increase in digital coupons issued on Click & Collect sites (up 27%);
- Good performance in offline businesses (up 4.5%), benefiting from a favourable comparison base.
The Group’s revenue for FY 2021 came to €137.4 m.
FY 2021 business growth in
| Gross Profit (in € m) | 2021/2020 LFL change | % Total gross profit | ||
| 2021 | 2020 LFL | |||
| Q1 | 15.98 | 15.30 | +4.5% | 86.0% |
| Q2 | 16.50 | 15.66 | +5.4% | 85.9% |
| Q3 | 16.30 | 16.21 | +0.6% | 87.1% |
| Q4 | 17.66 | 17.16 | +2.9% | 88.3% |
| 12-month total | 66.45 | 64.32 | +3.3% | 86.8% |
In
As a result, business grew 3.3% for FY 2021, with
| INTERNATIONAL | Gross Profit (in € m) | 2021/2020 LFL change | % Total gross profit | |
| 2021 | 2020 LFL | |||
| Q1 | 2.61 | 2.90 | -10.1% | 14.0% |
| Q2 | 2.71 | 2.12 | +27.8% | 14.1% |
| Q3 | 2.42 | 2.31 | +4.6% | 12.9% |
| Q4 | 2.34 | 2.51 | -7.0% | 11.7% |
| 12-month total | 10.07 | 9.84 | +2.3% | 13.2% |
In International businesses, after two quarters of strong growth, gross profit in Q4 2021 declined 7% like for like to €2.34 m.
For FY 2021, International business therefore rose 2.3% to €10.07 m, accounting for 13.2% of the Group’s gross profit. This business growth came both from
2021 FINANCIAL PERFORMANCE EXCEEDS EXPECTATIONS
Based on the year-end closing in progress, business growth combined with sound cost control shows a strong increase in headline PBIT of more than 25%. As a result, the Group has raised its guidance for operating margin, now forecasting adjusted operating margin3 up from more than 19% to more than 20% (reported 2020 adjusted operating margin of 16.4%). This profitability is also higher than the pre-pandemic level (reported 2019 adjusted operating margin of 18.5%).
In light of the Group’s expected results and solid financial position, the Management Board plans to deliver high shareholder returns:
- by recommending to the Supervisory Board to propose at the next Annual General Meeting a dividend per share of €0.32, representing a strong increase of 18.5%, doubling the pre-pandemic dividend paid in 2019 (€0.16 per share);
- and by moving forward with its share buyback programme.
2021 annual earnings will be released on 22 March after market close. A conference call for financial analysts is scheduled for Wednesday, 23 March at 11.00 a.m.
STOCK MARKETS: HIGHCO REMAINS ELIGIBLE FOR FRANCE’S SME EQUITY SAVINGS PLANS
In line with regulations (France’s Action Plan for Business Growth and Transformation, or PACTE, of
About
As an expert in data marketing and communication,
Listed in compartment C of Euronext Paris, and eligible for SME equity savings plans (“PEA-PME”),
Your contacts
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
Publications take place after market close.
2021 Annual Earnings: Tuesday,
Conference call on 2021 annual earnings: Wednesday,
Q1 2022 Gross Profit: Tuesday,
Q2 and H1 2022 Gross Profit: Thursday,
2022 Half-year Earnings: Wednesday,
Conference call on 2022 half-year earnings: Thursday,
Q3 and 9-month YTD 2022 Gross Profit: Wednesday,
Q4 and FY 2022 Gross Profit: Wednesday,
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.
Attachment
- HighCo CP T4 2021 MB_VDEF_EN
© OMX, source
